Parsonage Allowances

As a reminder, the new income tax year will begin on January 1, 2012.

The IRS does NOT allow churches to set a parsonage allowance for their pastor retroactively. That means between now and January 1, 2012, this amount should be established by the local church conference and passed in regular order. A copy of this action must be kept as a part of official church records and the minister should keep a copy of the action in his/her personal records.

The amount of parsonage allowance should be reviewed at regular intervals throughout the year to make sure it is set as close to the actual amount possible.

Meet The Author