Housing Allowance

Housing Allowance Summary

Youth For Christ/USA (YFC) employees who qualify, may elect a portion of their salary to be taken as a ministerial housing allowance. In order to be considered for a housing allowance, you must be a minister, as defined by Section 107 of the Internal Revenue Code. Our YFC Ministerial Housing Allowance Policy outlines six criteria for determining one’s eligibility for housing allowance.

Submission and approval of a letter of assignment, copy of documentation from the ordaining, licensing, or commissioning body, and completion of a housing allowance designation worksheet are required.

A housing allowance offers ministers the ability to deduct a portion of their gross income that they spend on housing costs from their federal income taxes. Housing allowances can include all big-ticket housing expenses, such as mortgage payments, rent, utilities, home insurance, home improvements, and so much more.

The process for creating a housing allowance starts in the fall of each calendar year. A minister may ask the housing allowance committee to build in a housing allowance, or the committee may offer this benefit to a minister as they enter into the next year. The minister(s) will fill out a housing inventory to account for all their housing expenses. Then, the budget committee will provide the minister(s) with a notification of housing allowances. This notification will be used when the minister fills-out their taxes for the following year to ensure that their housing allowance remains untaxed.

This material is provided solely for informational purposes.  It is not to be construed as legal advice.  For authoritative assistance in this matter, you should contact your attorney, tax counselor, or accountant.

Housing Allowance Instructions and form.