I’m curious. When you read articles like this one, questioning the future of the Parsonage Allowance tax credit….
http://seattletimes.com/html/nationworld/2022321470_clergyhousingxml.html
in what directions does your mind go? In summary, do you believe the USA will stop offering a tax deduction (exclusion) for members of the clergy? … and if so, should we care? Would you describe this credit as a “right” or a “blessing,” and why? What do you think will be next steps? To share your opinion, click into a “Comment box” below the online version. Thanks in advance for sharing your opinion.
I think that the direction the entire culture of the USA is going will lead to the complete removal of any tax advantages to clergy or churches. We need to continue to trust God to provide, not our government and I don’t have a problem with that even though I’m an ordained clergyman.
The parsonage allowance was a tremendous blessing for us in our years of pastoring small churches. As with almost everything else that honors God and blesses his people, I think this allowance will be rescinded. But God is able. He will make it possible for His servants to have a place to live and pay their taxes.
We (as a family) also have a history of over 35 years serving in smaller churches or as US based missionaries – which included several years hovering between 20-50% of needed support. If we had not had our housing allowance, we would have lost our home. (Which was inherited – and inheritance taxes were paid.)
One area the article (and those bringing suit) misrepresent is that a church or religious organization can’t merely “designate” a percentage or amount of a salary as housing allowance and it’s a done deal. That designated amount must be backed up in actual expenses. Ours has to be recalculated every 6-12 months in order for us to continue to receive that “designated” amount. If that “designed” amount is not spent on housing related expenses, we do have to pay taxes on any amount not backed up by expenses.
The basis of providing “housing” (whether via parsonage or housing allowance) for clergy has been a part of the “common law” based on Roman law, so it’s not a new concept introduced in the 1950’s (as the article mistakenly indicates). This misrepresentation makes it appear to be more “modern” in origin.
It seems that things are moving to bring charity giving and religious connected income that has been ruled as “non-taxed” back into the “taxed” bracket. In truth, this move won’t bring in huge amounts, but will instead be a burden to the smaller churches/pastors.
I haven’t been able to get around the fact that Jesus paid taxes and I don’t. And we’re doing the same ministry. So, in 2014 I’m going to let go of our tax exempt status and pay taxes like Jesus and everybody else did and does. Just because tax-exemption is avaiblable does not mean that I should take advantage of it. I’ve prayed a lot about this and I have peace. And God still owns the cattle on a thousand hills.