The Internal Revenue Code Section 107, states that in the case of a minister of the gospel, gross income does not include the housing allowance paid to the minister as part of the minister’s compensation to the extent it is used to rent or provide a home. The responsibility for determining the appropriate amount of housing allowance that can be excluded is the minister’s. The church has no responsibility beyond determining that the compensation is reasonable. This eligible amount in any individual case may not exceed the fair rental value of the minister’s home (including furnishings) plus the cost of utilities.
In order to designate your income as housing, please complete one of the following forms: