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May the total of the designated housing allowance be excluded for income tax purposes?

April 26, 2017allowance designated excluded HOUSING purposes total

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May the total of the designated housing allowance be excluded for income tax purposes?

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The housing allowance exclusion is limited to the lowest of (1) reasonable compensation, (2) the fair rental value of the home furnished plus utilities, (3) the amount used to provide a home from current ministerial income, or (4) the amount properly designated. When a minister lives in rented housing, there is no need to apply the fair rental value test. Return to questions.