Tweet
Federal judge strikes down housing allowance for clergy
Remember, this is not a debate area - if you want to debate this, please start your own thread.
The fact is, however, that all across America, small Churches are able to pay their ministers a livable wage because they can take advantage of this tax law.
Just make it a matter of prayer, please, because this could seriously impact hundreds of thousands of ministers, particularly in small churches, or those serving in bi-vocational roles.
A housing benefit that saves clergy $800 million a year in taxes has been deemed unconstitutional by a federal judge. Under the law, housing allowances paid as part of clergy salary can be subtracted from their taxable income. Religious freedom advocates fear the ruling could force many churches in poor areas to close.
Share:
MADISON, Wisconsin - A federal judge in Wisconsin has struck down as unconstitutional a law that gives clergy tax-free housing allowances, in a ruling that could have far-reaching ramifications for religious leaders, who could be facing new taxes which will threaten their ministry.
Under the federal law passed in 1954, a “minister of the gospel” doesn’t pay income taxes on compensation that is designated part of a housing allowance. The Freedom From Religion Foundation, based in Madison, argued that the law discriminates against secular employees.
The benefit saves clergy, including non-Christian religious leaders, $800 million a year in taxes, according to the latest estimate from the congressional Joint Committee on Taxation.
Under the law, housing allowances paid as part of clergy salary can be subtracted from their taxable income.
Share:
MADISON, Wisconsin - A federal judge in Wisconsin has struck down as unconstitutional a law that gives clergy tax-free housing allowances, in a ruling that could have far-reaching ramifications for religious leaders, who could be facing new taxes which will threaten their ministry.
Under the federal law passed in 1954, a “minister of the gospel” doesn’t pay income taxes on compensation that is designated part of a housing allowance. The Freedom From Religion Foundation, based in Madison, argued that the law discriminates against secular employees.
The benefit saves clergy, including non-Christian religious leaders, $800 million a year in taxes, according to the latest estimate from the congressional Joint Committee on Taxation.
Under the law, housing allowances paid as part of clergy salary can be subtracted from their taxable income.
Remember, this is not a debate area - if you want to debate this, please start your own thread.
The fact is, however, that all across America, small Churches are able to pay their ministers a livable wage because they can take advantage of this tax law.
Just make it a matter of prayer, please, because this could seriously impact hundreds of thousands of ministers, particularly in small churches, or those serving in bi-vocational roles.
Comment