Hello, I have a bit of information to share that will lead up to my question. First off, starting June 1st my husband will become a full time pastor. He will be receiving a salary of 36,000 a year, a housing allowance of 14,000 a year, health insurance 5,000 a year (we have to find our own insurance and the church will pay us back the monthly premium. The 5,000 will be split into monthly payments, that being said since we will receive it as a check to reimburse us for that month’s premium, can we deduct the premium expenses on our taxes. The accountant I spoke with said it’s considered taxable income since they could give us that money and we could spend it on whatever and the church would never know (her example of why it’s taxable). Since it’s would be included in the 36,000 salary (36,000 salary + 5,000 insurance premiums = 41,000 taxable income) can we deduct it or not?
