Deductions & credits

Sorry, no. There is no special deduction for housing expenses for ministers for money that they earn outside of the ministry job or expenses paid with funds from outside the ministry job.

 

To be considered tax free for income tax purposes (a housing allowance is always subject to self-employment tax) it must be paid by the church to the pastor in cash, or in-kind, such as in the form of a parsonage provided to the pastor rent free.  (Additionally, the housing allowance must be designated as a housing allowance in advance and in writing.)