@Noah18 wrote:
If someone is a licensed/ordained clergy and works for a ministry non-profit in a clergy-related role (but they do not work for a church), can they receive a housing allowance as long as their employer gives them a letter that they have designated a portion of their salary as a housing allowance? (like the jail chaplain example being discussed)
Maybe. Generally, you must be performing ministerial services. See publication 517. It's not clear what you mean by a "ministry non-profit".
.
Ministerial Services
Ministerial services, in general, are the services you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader. Income you receive for performing ministerial services is subject to SE tax unless you have an exemption, as explained later. Even if you have an exemption, only the income you receive for performing ministerial services is exempt. The exemption doesn't apply to any other income.
The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers.
Ministers
Most services you perform as a minister, priest, rabbi, etc., are ministerial services. These services include:
-
Performing sacerdotal functions;
-
Conducting religious worship; and
-
Controlling, conducting, and maintaining religious organizations (including the religious boards, societies, and other integral agencies of such organizations) that are under the authority of a religious body that is a church or denomination.
You are considered to control, conduct, and maintain a religious organization if you direct, manage, or promote the organization's activities.
A religious organization is under the authority of a religious body that is a church or denomination if it’s organized for, and dedicated to, carrying out the principles of a faith according to the requirements governing the creation of institutions of the faith.
Services for nonreligious organizations.
Your services for a nonreligious organization are ministerial services if the services are assigned or designated by your church. Assigned or designated services qualify even if they don't involve performing sacerdotal functions or conducting religious worship.
If your services aren't assigned or designated by your church, they are ministerial services only if they involve performing sacerdotal functions or conducting religious worship.
