Ministers' Housing Allowance

[Salty]

...Assuming this is not a recent part of the regulations, could a church not get around that by just putting some math to work and increasing his salary as much as he would pay in those taxes?

Yes they could but that extra $50 a month (just pulled that figure out of the air) would now be subject to federal and State income tax. Assuming a total of 20% deduction - that would be $10 less from the $50.

 

[Alcott]

Yes they could but that extra $50 a month (just pulled that figure out of the air) would now be subject to federal and State income tax. Assuming a total of 20% deduction - that would be $10 less from the $50.

As I said, put some math to work, and use extremum to optimize... not that I mean I'm advocating this, but it could be done...

Gross + (Gross x FICA rate) + [(Gross x FICA rate) x 0.20] => Net Previous