Housing Allowance Resolution
Housing Allowance for Clergy (No Parsonage)
Whereas, {churchchargeName} does not provide its pastor rent-free use of a church owned parsonage but desires to provide housing allowance instead as compensation for services rendered to the church in the exercise of ministry and whereas the church desires to pay its pastor for expenses incurred in maintaining proper housing; and whereas, section 107 of the IRS Code allows a minister of the gospel to exclude from gross income a designated housing allowance, be it resolved that {housingAllowance} is designated as a housing allowance for {pastorName}. The pastor agrees to keep an accurate record of housing expensditures to substantiate any amounts excluded from gross income in filing their tax returns. Housing exclusion must be included as part of income for self-employment tax, if applicable. In the event of an examination, the pastor has responsibility of substantiating the uses of such funds. This line is normally reported in Box 14 of the W-2.