1212. What rental allowances must ministers include in net earnings?
If you are a minister, you must include the following in net earnings from self-employment (unless you are granted an exemption from coverage under Social Security (see §1131):
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The rental value of a home furnished as part of your compensation;
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A rental allowance paid as part of your compensation; and
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The value of any meals or lodging furnished in connection with services performed in the exercise of your ministry.
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Salary
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Fees and honoraria for officiating at weddings, christenings, funerals and other services in the exercise of the ministry.
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Value of meals when furnished as part of his compensation; and
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Travel and automobile allowances, although these same items will be deducted as business expenses if incurred in the performance of his duties.
A minister excludes from gross income:
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Pensions and retirement pay
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Parsonage or housing allowances when included in retirement pay after the minister retires or any other retirement benefit received after retirement pursuant to a church plan as defined in Section 414(e) of the Internal Revenue Code must be excluded when computing a net earnings from self-employment.
Last Revised: Jul. 1, 2004