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Deductions & credits
Yes, you can count your entire church salary as a housing allowance as long as the total is not more than the fair market rental value of the home (including furnishings, utilities, garage, etc.). Click here for help figuring the fair market value.
You may also be able to take a medical expense deduction of the excess of your medically necessary home costs over the amount that you used to claim a housing allowance, but unless you have substantial other income, it is not likely to reduce your taxes.
Both the housing deduction and the medical expenses deduction reduce your regular income tax, but do not affect the amount of self-employment tax that you have to pay.
[Edited 01/16/23 | 11:25 PST}
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‎January 16, 2023
9:45 AM