The housing allowance for Bi-vocational pastors is limited to their ministerial income received. Per, the IRS "if you get income for working as a minister who is an employee, count it as earned income. This income includes:
- Wages
- Salaries
- Tips
- Other taxable employee compensation"
The housing allowance would need to meet the following criteria:
- the amount is officially designated as housing and allowance
- the amount is actually used to provide or rent a home
- or the fair market rental value of the home
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