TN 10 (08-04)
A minister includes as gross income:
Fees and honoraria for officiating at weddings, christenings, funerals and other services
in the exercise of the ministry;
Rental allowance for a parsonage or value of a parsonage furnished to him;
Value of meals when furnished as part of his compensation; and
Travel and automobile allowances, although these same items will be deducted as business
expenses if incurred in the performance of his duties.
A minister excludes from gross income:
Pensions and retirement pay;
Parsonage or housing allowances when included in retirement pay after the minister retires, or any other retirement benefit received after retirement pursuant
to a church plan as defined in Section 414(e) of the Internal Revenue Code, must be
excluded when computing NESE. For example, if a minister retires from Church A and the rental
value of a parsonage or any other allowance is included in his/her retirement pay the parsonage allowance must be excluded when determining
NESE. However, if this same retired minister goes to work for Church B and is paid
a parsonage allowance by Church B this new income must be included when computing
Gifts, unless they are understood to be part of his compensation.
IRS Publication 517, Social Security for Members of the Clergy and Religious Workers.