Minister housing allowance
Proper designation, documentation and the three-part limit, done right. How it’s taxed →
Church & clergy accounting
Ministry finances follow their own rules — and most firms don’t know them. We do. From the pulpit to the books, we keep churches and clergy across the South compliant, clear-headed, and out of trouble.
What’s included
The rules that make ministry different — handled.
Clergy tax (dual status & SECA)
The dual-status rules and self-employment tax that trip up most pastors, planned for in advance.
Church bookkeeping & fund accounting
Restricted vs. unrestricted funds tracked correctly, with board-ready financials.
Payroll & love offerings
Clergy payroll, designations and love-offering handling done by the book.
Nonprofit compliance
Contribution statements and the compliance basics that keep a church in good standing.
Treasurer support
A CPA in the corner of your volunteer treasurer — so the load doesn’t fall on one person.
Who it’s for
Pastors, treasurers, and the churches they serve.
Small congregations rarely have an accountant on staff — the books fall to a volunteer treasurer, and clergy tax gets figured out by guesswork. Both are risky.
We take that weight off. Whether you’re a pastor sorting out your own taxes or a treasurer keeping the church compliant, you get someone who knows the ministry rules cold — remotely, so distance is never the barrier.
Good fit for
- Pastors & ministers (clergy tax, housing)
- Church treasurers & finance committees
- Small congregations & church nonprofits
- Ministries needing board-ready financials
From our practice
The single most common — and most costly — clergy mistake we see is a church designating the housing allowance after it’s already been paid. The income-tax exclusion under IRC §107 only applies to amounts the church designates in advance and in writing, so a late designation can forfeit the benefit entirely. Getting that one step right, every year, is exactly the kind of thing we handle for the churches we serve.
— LaCombe, CPA · church & clergy specialty
Available across the South
Serving churches in your town.
100% remote — we serve congregations across the South.
Free download
Get the Church & Clergy Tax Library — free
Three plain-English PDFs, yours in one click: the Minister’s Housing Allowance Kit (with a fill-in designation template), the Complete Minister & Clergy Tax Guide, and the Church Accounting & Compliance Guide. Drop your email and we’ll send them right over.
Go deeper
Free, in-depth clergy tax guides.
The definitive references our clients rely on — plain-English and fully sourced.
The Complete Guide to Minister & Clergy Taxes
Housing allowance, SECA self-employment tax, Form 4361, deductible expenses, estimated taxes & retirement — the whole picture for ministers.
Read the minister guideChurch Accounting & Tax Compliance Guide
501(c)(3) status, paying your pastor, Form 990, UBIT, fund accounting, donor receipts & payroll — for treasurers and boards.
Read the church guideChurch & clergy FAQ
Good questions, straight answers.
How is a minister’s housing allowance taxed?
A minister’s housing allowance is excluded from federal income tax under IRC Section 107, but it is still subject to self-employment (SECA) tax. The exclusion is capped at the lowest of three amounts: the sum the church designates in advance, the minister’s actual housing costs, and the home’s fair rental value (furnished, plus utilities). See IRS Publication 517 and IRS Topic No. 417. Full explanation here →
What is Form 4361, and should a minister opt out of Social Security?
Form 4361 lets a minister apply to opt out of self-employment (SECA) tax on ministerial earnings — but only on the grounds of religious or conscientious objection to public insurance, not for financial reasons. It’s a high-stakes, generally irrevocable election that permanently affects future Social Security and Medicare benefits, so it should never be filed without a CPA’s guidance.
What’s the difference between a parsonage and a housing allowance?
A parsonage is housing the church provides directly to the minister; a housing allowance is cash the church designates for the minister to pay their own housing. Both are excluded from federal income tax (a parsonage at its fair rental value) and both remain subject to self-employment (SECA) tax. Either way, the amount must be officially designated in advance to qualify.
Can you help a small church with no bookkeeper?
Yes. Many small congregations run on a volunteer treasurer. We handle the books, payroll, designations and reporting remotely and give the board clear, board-ready financials — so the church stays compliant without in-house staff.
Do you work with churches outside Louisiana?
Yes. Because we’re fully remote, we serve churches across the South, not just our home state — clergy tax rules are federal, so they’re the same wherever your church is.
Last updated: June 2026. This page is general information, not tax advice. Clergy and church tax has important nuances — please confirm your situation with a CPA.
Church & clergy specialists
Pastor or treasurer? Let’s get it right.
Book a strategy call and we’ll take the ministry-finance weight off your shoulders — compliant and clear.