Housing allowance Tax for a minister

For a duly ordained minister, there will not be any report on tax return for the provided housing allowance. Housing allowance does not form the part of the taxable income if the person is a duly ordained minister. But the allowance allowed should be used as housing allowance only. If the allowance is used for some other purpose then it should be entered in to the tax form before filing. In such a situation, the amount of money which is spent on the other purposes will become taxable and it should be reported also. No benefits in tax will be given in such a condition. If you had used the money for down payment to house or to pay utilities for home, it will not be taxable. In order to qualify for this tax treatment, one must be ordained. Also there is a limit for this amount which is free from taxes. The amount should not be greater than the compensation amount for one’s services as a minister. Also make sure that the organisation which employs you shows the allowance as housing allowance on the appropriate salary documents. You have to make sure that it is mentioned before the payment is made. Otherwise it would be taken as a part of the taxable income.