Get your taxes done using TurboTax

I can't answer for the foreign housing exclusion, but I can tell you how housing expenses would be calculated for the clergy housing allowance.  I suspect the rules are similar.

 

For the period when you received free housing, your "cost" is the fair market value of the housing, and the taxable value is also the fair market value.  For the period when you received a cash stipend, the value of the cash stipend is the cash, and the cost of housing is what you actually paid.

 

The calculation (over the course of a whole year) would look like this:

 

 

 

    Report as cost Report as value
January Free housing worth $1500/month $1500 $1500
Feb Free housing worth $1500/month $1500 $1500
March Free housing worth $1500/month $1500 $1500
Apr, May, June Free housing worth $1500/month $4500 $4500
July Cash stipend of $1500, actual cost was $2000 $1500 $2000
Aug Cash stipend of $1500, actual cost was $1900 $1500 $1900
Sept Cash stipend of $1500, actual cost was $1800 $1500 $1800
Oct Cash stipend of $1500, actual cost was $1500 $1500 $1500
Nov Cash stipend of $1500, actual cost was $1300 $1500 $1500
Dec Cash stipend of $1500, actual cost was $1300 $1500 $1500
Total   $18,000 $19,200

 

(For this example, I assume you are living in a hot country and your utilities were higher due to air conditioning.  The example would be calculated the same if your actual cost varied for any other reason, such as changing utilities, various housing fees, insurance, rent increases, and so on.)

 

I hope that makes sense.