Our clergy housing allowance: unconstitutional...again

[William Thornton]

I can almost guarantee that all of my clergy colleagues have seen this, since it is our sacred clergy tax break and puts real money in our pockets every year.

is my article.

Baptist Press:

BNG, Bob Allen:

My insightful and HA expert CPA friend Peter Reilly's Forbes tax blog:

One pastor's defense

My view: It's not an establishment of religion but a pretty sweet tax break.

For laity who may care and are puzzled: Qualifying clergy (most any ordained person, rabbi, imam, etc.) may receive part of their income as "housing allowance" and completely exclude that amount from income for income tax purposes. The clergy must pay social security on the amount, though. The average SBC pastor with cash income of around $70,000 probably excludes $20,000 or so of this through the HA.

[Sandy]

It's much more complicated than it appears on the surface.

It seems like it might be easier to keep the allowance if its use is expanded to all employees of non-profit agencies, instead of being limited to religious entities. The establishment clause doesn't mean that it's OK if the law applies to all religions equally, the Lemon Test, which has been applied by the federal courts for quite some time, means that establishment occurs unless there is a singularly secular purpose that has been established. By making the allowance available to the leadership of anything that can be defined as "religious," the government is simply establishing all religions equally. By including the employees of organizations that might have a secular mission and purpose, it would avoid that establishment.

As an ordained minister of the gospel working for a "religious" institution, I could get a HA if I wanted one, but past experience has taught me that I wind up saving a little bit more money by taking the FICA match, and avoiding the quarterly tax filing headache.

[Dave Roberts]

I'm afraid it's the same plaintiffs and the same judge all over again. Now it will go back through the same appellate process. We probably won't know what this ruling means for two to five years.

[Tim Bonney]

[Dave Roberts]

[Dave Roberts]

Here is the most recent update on this from Religion Dispatches.

[William Thornton]

As expected, the judge stayed any action or changes until 180 days after appeals are over.

[Tim Bonney]

[William Thornton]

[Rvaughn]

I am not an employee of my church, and don't mess with the housing allowance either.

[Tim Bonney]

[William Thornton]

You may be right and it not be much of a problem. I'm not sure what position our denominational leaders would take but feel sure there would be considerable support from pastors. A transitional period could be created. Exceptions for individual congregations who profess a conscientious objection could be made. While I've often seen such a proposal discussed on the blogs, I'm not aware of any lawmaker ever proposing it.

[Tim Bonney]