Parsonage Allowances

As a reminder, the new income tax year will begin on January 1, 2012.

The IRS does NOT allow churches to set a parsonage allowance for their pastor retroactively. That means between now and January 1, 2012, this amount should be established by the local church conference and passed in regular order. A copy of this action must be kept as a part of official church records and the minister should keep a copy of the action in his/her personal records.

The amount of parsonage allowance should be reviewed at regular intervals throughout the year to make sure it is set as close to the actual amount possible.

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