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Page History
| Procedure Name: | Parsonage |
|---|---|
| Scope: | All Staff |
| Revision Date: | December 28, 2021 |
| Last Review Date: | May 5, 2023 |
Parsonage Eligibility Requirements
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- The individual must have "ministerial status," that is, the minister must be duly ordained, licensed, or commissioned as a minister, as defined by the IRS.
- The individual with ministerial status must be performing primarily "ministerial services," as defined by the IRS.
- The employing church or other qualifying organization must designate in advance of receipt a specific amount of the individual's compensation as a parsonage allowance.
- The individual, if otherwise qualified, may exclude only that portion of the designated parsonage allowance actually expended for qualified housing costs as recognized by the IRS.
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- The individual must work 20 hours a week or more
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| Info |
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All ministers submit their certificate of ordination, commissioning or licensing to Reliant for approval by the Employment Services Department, and if necessary, the Director of Organizational Affairs and Treasurer. Once it is approved, the minister may then request a portion of their salary be designated as parsonage by submitting a Parsonage Request Form to Employment Services. For more information, see Working with Reliant as a Commissioned or Ordained Minister |
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- The minister should keep records and receipts of allowable housing expenses they incur throughout the year.
- The minister should track how much parsonage allowance they have received compared to the actual allowable housing expenses they have incurred.
- The minister should update their Parsonage Request Form to increase or decrease the amount of parsonage they're receiving when their year-to-date allowable housing costs are significantly different than the parsonage amount they have been receiving.
- When filing their taxes, any excess parsonage allowance paid to the employee, should be shown as income on Form 1040 (see the Zondervan Minister's Tax GuideGuide https://www.fcmmbenefits.org/ministers-tax-and-financial-guide-2023-2022-returns for additional details of this process).
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