Opus 17
Level 15

Deductions & credits

IF you are talking about a parsonage allowance for a pastor or minister, this income is subject to self-employment income, but is not subject to income tax, up to the actual cost of housing.  For example, if your actual cost of housing is $15,000 but the housing allowance is $18,000, the remaining amount is added back to taxable income.  On the other hand, if actual housing expenses are $18,000 and the parsonage allowance is $15,000, only the $15,000 can be excluded from income and there are no deductions for the other "unused" $3000 of housing expenses.

 

There are a lot of other rules, pastors should read this,

https://go.efca.org/resources/document/preparing-tax-returns-clergy

 

A pastor with a housing allowance can certainly file a joint return.

 

If you are talking about something else, we need to know more details, we don't recognize whatever you are talking about. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*