Housing Allowance

[Earl]

What is the IRS definition of minister for purposes of the housing allowance. Churches now have ministers or education, ministers of music, etc. I hear more and more about all these type ministers receiving the housing allowance. Can anyone cite and IRS definition.

What about Ministers of Music or Ministers of Education. OK or not?

[Black Bart]

Don't have a cite, but

one of my churchers who comes by for forms every year left me an article from a religious publication. It says "to be treated as a minister for social security purposes (and therefore, I suppose, pertaining to the related housing allowance deal), ministers must be duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination and they must be able to perform all of their denonmination's sacraments and ordinances as well as conduct worship services."

Now; that's quite a mouthful, but it seems to me that the music directors, etc. are stretchin' it a bit by claimin' the housing allowance. Probably most of them aren't in the first category (ordained--which I take to mean they graduated from a seminary). On the other hand, as far as being "commissioned" or "licensed" by a church, I guess the church board could do that. As to whether or not the music guy/girl could "perform sacraments" or "conduct worship services," that sounds like a pretty loose standard. I could probably squeak by that one, although my performance and conduct would be lousy--but they don't say anything about quality when they "fill-in" for the preacher once in a while (I've seen that done).

I guess it depends on how you interpret that "commissioned' or "licensed" phrase.

[Black Bart]

Wait, wait! Just found somethin'

from the horse's mouth (IRS Pub 517): MINISTERS DEFINED. "If a church or denomination ordains some ministers and licenses or commissions others, anyone licensed or commissioned must be able to perform substantially all the religious functions of an ordained minister to be treated as a minister for social security purposes."

Gosh, this opens up all sorts of possibilities. Say a small, country church (not too high-toned) had a good janitor they wanted to keep and couldn't afford to pay full-time. If he was a fairly good windjammer, they could "license" him to preach and he'd get to "take off" his housing expenses as a perk.

Hmm; I've been accused on occasion of bein' a blowhard--wonder how much of a donation to the building fund it'd take to get the folks to gimme a "license?"

Well; food for thought. Gotta mull that one over. Talk to you later--I'm off to church.

Blessed are the frugal for they shall inherit CDs--BB

[Chief]

Ministers

I am an ordained minister in my denomination. Have served in several capacities. I was audited in 1987 by the IRS. The IRS employee doing the auditing was interested mainly in my ledger sheets of Income, supplies used, and surprising to me a biographical yearbook and directory of my denomination where I was listed as an "other ordained member." Besides making a copy of the page where I was listed, she made a copy of my ordination certificate from the church that ordained me. At the time I was working full time with a church-owned university.
What I am saying is that many ordained, licensed, or commissioned ministers are working with churches, schools, colleges, all kinds of missionary endeavors. What seems important to the IRS are their credentials that must include some type of approval or certification from a church or denomination to be valid. There may be exceptions to this line of thinking, but I believe it would better help a person's identification with the ministry to have relationship with an established form of religion.

[Black Bart]

No Wiccans,

Neo-Pagans, or practitioners of Voodoo need apply, I take it?

[jainen]

You might ask

You might ask if the minister can perform legal marriages, an exclusive sacrament in most religions.

[Chief]

Perform Marriages

At one time the only state where ministers had to be licensed by the state to perform marriages was Kentucky. Any one can perform a marriage ceremony anyplace and sign the marriage certificate and state licenses except in Kentucky.

[DaveinTexas]

Here's a website

I found to be quite helpful in this matter.

http://www.gcfa.org/TaxPacket.html