@debby201 wrote:
Hi there,
Both my husband and I work for the same 501c3 and qualify for housing allowance. He is currently receiving the full amount. I would like our organization to transfer the full amount to me rather than my husband. He may need to go into long term care soon and will not be working. Any downside to this?
I'm unclear on your question. To qualify for the minister's housing exclusion, it's not enough to be working for a non-profit. You must be both (a) qualified to perform ministerial duties, and (b) actually be performing ministerial duties in your current job. (Or, be a retired minister receiving a pension that is paid by the religious organization you used to work for. A retired minister with their own IRA does not qualify for the housing exclusion.)
Then, the housing allowance must be designated in advance and in writing by your employer. It can't be more than fair compensation for the work you perform, and it can't be more than the fair market value of your home or actual housing expenses.
If you and your husband both perform religious duties as a duly ordained or licensed or accepted pastor of your denomination, then there is no particular benefit to asking the employer to change the housing allowance designation -- making your spouse's salary taxable income and designating your salary as a housing allowance -- as long changing it to you doesn't make it exceed fair compensation for your services. the change can't be retroactive, so for 2020, your spouse would have some housing allowance through April at least.
