Parsonage question

[tinytim]

A housing allowance will affect your Social Security earnings.

Because H&R Block coded something wrong this yr, it showed I was getting a housing allowance (which I don't) it affected my SS earnings figures, and SS called to verify. Of course I liked the figures before the mistake was cleared up... but .... Gotta be Christlike.

 

[StefanM]

Yes. You must pay SE tax (goes to Social Security and Medicare) on your housing allowance. Of course, you must also pay this on salary. With the housing allowance, though, income tax does not apply.

 

[annsni]

Several thoughts from one who lives in a parsonage:

1. The church could not afford a full time pastor without the housing benefit.
2. It saves me money because I pay no property tax on the house (while all my neighbors pay in the neighborhood of 4-8 weeks of my salary just to pay property tax).
3. Fiscal discipline means I save so if I ever need to buy a house, I have money to do it.
4. If you sell the parsonage, you get a one-time influx of cash. You cannot depend on that for operating expenses.
5. A parsonage can be helpful even if the pastor buys his own house for the time when an assistant is brought on or some such. It can also be used for offices, off-site Bible studies, missionaries, etc.

Overall, if you can afford the maintenance and upkeep, keep the house even if the pastor doesn't live in it.

While it may be different in different towns/counties/states, where we are, because DH is an ordained minister, we pay much less on our property taxes for the town and don't pay anything for the village (we own our own home and had bought it over 10 years before DH went into ministry). It brings our taxes from approximately $13,000 a year to about $7500 - WAY more reasonable for us to do.


ETA: Our church has a parsonage - our pastor has lived there for about 40 years now. We also own what we call the "Hospitality House" which was an old farm house on property next to the church that we purchased to be able to expand our parking. We moved the house to some property we bought across the street and that house is available for missionaries, families in need, etc. The grounds are set up with picnic tables and a small outside chapel too. We still need to renovate the second story to make it a two family so that we can have 2 missionary families or families in need stay there. It's been a great blessing for us.

 

[abcgrad94]

I think it just depends on the church, the pastor, and the location, whether or not the parsonage works out well. The parsonage we live in is much larger than what we could afford, and the church is pretty respectful of our privacy. However, I dislike living in it because it's worse than living under a microscope. Every bum in town knows where "the parsonage" is if they want a handout, and every neighbor watches like a hawk for any little thing to criticize, whether if the flower beds need weeded or how often we come and go. I cannot go outside or let the kids outside without being gawked at or informed of my children's behavior (whether they were "good" or "fighting") or whether or not someone is shocked that my hubby didn't have his shirt on. Not to mention, even the sweetest church people just don't get it when the parsonage needs minor repairs, like plumbing leaks or ceiling tiles falling down. You can't bring it up without looking like an ungrateful complainer, and heaven help the woman who comes after a former pastor's wife who was a perfect housekeeper!

I guess for me it would be so much easier if we lived on the outskirts of town in our own home. My advice is, let the new minister choose. It might be a dream come true or it might be his worst nightmare.

 

[PilgrimPastor]

I think it just depends on the church, the pastor, and the location, whether or not the parsonage works out well. The parsonage we live in is much larger than what we could afford, and the church is pretty respectful of our privacy. However, I dislike living in it because it's worse than living under a microscope. Every bum in town knows where "the parsonage" is if they want a handout, and every neighbor watches like a hawk for any little thing to criticize, whether if the flower beds need weeded or how often we come and go. I cannot go outside or let the kids outside without being gawked at or informed of my children's behavior (whether they were "good" or "fighting") or whether or not someone is shocked that my hubby didn't have his shirt on. Not to mention, even the sweetest church people just don't get it when the parsonage needs minor repairs, like plumbing leaks or ceiling tiles falling down. You can't bring it up without looking like an ungrateful complainer, and heaven help the woman who comes after a former pastor's wife who was a perfect housekeeper!

I guess for me it would be so much easier if we lived on the outskirts of town in our own home. My advice is, let the new minister choose. It might be a dream come true or it might be his worst nightmare.

WOW... my wife could sure identify with your current situation because of our last situation... "Pastor Wonderful" and his wife were great gardeners, "Pastor Fix-it" took such good care of the parsonage and made so many improvements... YA RIGHT... Pastor fix it's idea of improvements was installing yard lights on the side of the house that didn't get used and his wife's "weed garden" was a constant source of irritation since we were simply not going to plant tulips every fall, or whenever you plant them... they were REALLY impressed when I took a gas powered weed whacker to Mrs. Wonderful's weed garden

That was the cookiest church ever... we left that church with mixed feelings... happiness and joy! :laugh: