A minister’s housing allowance lets ordained, licensed, or commissioned ministers exclude housing costs from federal income tax (not the Self-Employment Contributions Act tax, SECA) when the church designates the allowance in advance. Qualifying roles include ministerial services for a church or eligible organization. Enroll now: Download the Housing Allowance Request and follow the 10-minute setup in Episode 1 – Housing Allowance.

A parsonage is church-provided housing; you may exclude its Fair Rental Value (FRV)—including utilities—from income tax. A housing allowance is cash the church designates for your housing, excluded within limits; neither exclusion removes SECA by itself. Inside: Simple diagrams and examples show which setup fits your situation.

Yes. While in a parsonage, the church can also designate a utility/rental allowance for your out-of-pocket costs, subject to normal limits. Included: Copy-and-paste board-minutes wording so your church can adopt this smoothly.

Eligible costs include rent or mortgage (principal and interest), property taxes, utilities, insurance, furnishings/appliances, repairs, lawncare/landscaping, housekeeping, and similar “used-on-the-house” items. Inside: An expanded, pastor-specific expense framework so you stop leaving money on the table.

If it’s used on the house, it can qualify; if it’s used on the body, it doesn’t. (Example: paper towels qualify; toilet paper does not.) Also, spending above limits can’t be excluded. Many items in your list can qualify when used on the home—but the “lesser-of-three” cap still applies. Tip: Episode 1 shows the rule on real receipts.

Keep (1) the board resolution/minutes showing the designation, (2) an annual Fair Rental Value (FRV) estimate, and (3) receipts/statements for housing costs. Included: Ready Housing Allowance Request and Board Minutes/Resolution templates to keep your file audit-ready.

Ask your church to designate a percentage (often 100% of compensation) instead of a fixed dollar amount so you’re not capped by an early guess. Your actual exclusion is still determined at tax time under the “lesser-of-three” rule. Included: Sample wording + a quick explainer for HR.

At filing, you exclude the least of: (1) actual expenses, (2) FRV furnished + utilities, or (3) the designated amount. If you under-spent, you only exclude what you spent; if you over-spent, you’re capped by the designation—another reason to request a percentage. Inside: Episode 1 covers this in detail.

Your exclusion equals the least of those three numbers: actual, FRV (furnished + utilities), or designated amount. Inside: Episode 1 examples make the math effortless.

Use local rental comps or a short broker/manager letter that states furnished FRV plus utilities. Keep it with your annual records. Included: One-page FRV worksheet + request email.

Renters qualify. Rent, utilities, furnishings, insurance on contents, repairs, and similar costs can be excluded—subject to the “lesser-of-three” limits. Inside: Renter-specific examples and a printable mini-checklist.

Keep your written designation in place, update documentation (new lease/closing, insurance, taxes, FRV), and continue tracking. Your year-end exclusion still follows the “lesser-of-three” rule. Inside: A mid-year change checklist.

Yes—on ministerial compensation from each qualifying employer that designates an allowance in advance. Non-ministerial wages don’t get the exclusion. Included: A one-pager to keep streams clean for payroll and taxes.

Use the Housing Allowance Request with “remains in effect from year to year unless amended or revoked,” and adopt matching board minutes. Included: Request form + sample minutes.

Yes. The church must designate in writing before payment—in a contract, budget, or board minutes/resolution. Included: Exact board language (auto-renew ready).

A church may show the rental allowance or FRV of a parsonage (and utilities) in Box 14 for clarity, while excluding it from Box 1 wages. Included: HR/W-2 quick card.

Excluded from federal income tax; many states follow suit (Pennsylvania differs). The exclusion does not remove SECA unless you have an approved Social Security exemption (see Section B). Inside: State-notes callout.

No. By default, ministers include housing/parsonage value for SECA. Only an approved exemption changes that. Enroll now: See the opt-out pathway in Section B.

Adjust withholding or make quarterly estimated payments so remaining taxable wages cover expected tax. Included: Per-paycheck example + estimate worksheet you can hand to HR.

If you’re a qualifying minister and the employer designates the allowance before payment, the exclusion rules apply during those roles. Tip: Use the quick “new-employer” letter so the designation isn’t missed.

Each employing church makes its own written designation in advance. At year-end you apply the “lesser-of-three” across your costs and designations. Included: One-page allocation checklist.

Yes—if they are ordained/licensed/commissioned ministers performing ministerial services and the employer properly designates the allowance. Inside: Role-eligibility chart.

Only your principal residence. Determine FRV for the home you primarily occupy and keep that documentation each year. Included: Simple FRV worksheet.

There’s no carryforward. You exclude the least of actual expenses, FRV, or the designated amount; any excess designation has no effect. Inside: Year-end checklist.

Many church plans (403(b)(9)) allow retired ministers to exclude a designated rental allowance from income tax on distributions. Included: Retirement overview showing how today’s paperwork supports tomorrow’s benefit.

It’s a comprehensive, pastor-specific checklist paired with the Housing Allowance Request and Board Minutes/Resolution language so your designation is complete, auto-renewing, and audit-ready. Enroll now: Download the templates and finish your setup in one sitting.

Most ministers are treated as employees for income tax but self-employed for Social Security/Medicare, so they pay SECA directly rather than having FICA withheld. Inside: A one-page explainer shows exactly how SECA is calculated and when estimates are due.

Form 4361 (Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners) is how qualifying ministers request exemption from SECA on ministerial earnings, based on conscientious objection to public insurance. If approved, the IRS returns an “Approved” copy. Included: Pre-checklist and filing walkthrough.

You must file Form 4361 by the due date (including extensions) of your return for the second tax year in which you had at least $400 of net earnings from ministerial services. Tip: We show how to count your two years correctly.

If you are within the two-year window, yes. If you’re past that window, we outline lawful ways to reposition facts/timing and evaluate alternatives that may still benefit you. Inside: A date-mapping worksheet and decision flow for your best next step.

No. Vow-of-poverty rules apply to members of religious orders (a different provision). Ministers who qualify may file IRS Form 4361 within the allowed timeframe. If your conscience or circumstances lead you to remain in Social Security, we’ll help you build a strong principle-protected, tax-advantaged private plan. Included: Side-by-side comparisons.

The election is intended to be permanent. Inside: A “before-you-file” decision flow so you can proceed with clarity.

There’s no standard redo, but pastors sometimes change facts (role, earnings timing) that open new filing opportunities. RevPropeller’s solutions to regain eligibility work for many ministers. Enroll now: We map your dates and give options.

Yes. The exemption applies only to ministerial earnings. Credits from non-ministry jobs still count toward eligibility and benefits. Included: A quick planner to see exactly how your non-ministry credits contribute.

You generally need 40 credits (up to 4 per year) from covered work to qualify for retirement benefits. Inside: How to check your my Social Security record and project benefits with our calculator.

All covered employment under FICA counts; ministerial SECA-exempt earnings do not. Tip: We show how to confirm past credits and fill gaps efficiently.

Possibly. Spousal and survivor benefits may apply even if your own credits are limited. Inside: A worksheet helps you evaluate spousal options using your Social Security statement.

Medicare generally requires sufficient covered quarters or spousal eligibility. Opting out of SECA for ministry earnings doesn’t create Medicare credits, but prior or spousal coverage can. Inside: A timeline so you don’t miss Part A/B milestones.

Exemption mainly affects Social Security retirement, disability, and survivor coverage tied to ministerial SECA. Included: A side-by-side that shows which protections you’ll replace privately (and how).

Principle-protected accumulation and living-benefit riders can replace disability/survivor risks. Enroll now: Episode 2 – IUL explains how to layer protection with tax-free growth.

We use Registered Social Security Analyst (RSSA®) tools to forecast benefits and compare with private projections, so you decide with numbers—not guesses. Included: Custom benefit report + redirection plan.

Yes. After approval, the IRS refunds SECA/FICA paid from filing date to approval; we also guide your church on employer FICA redirection so prior payments can be returned to you. Included: Church approval letter template + refund steps.

Processing often takes months; you’ll receive an approved Form 4361 by mail. Inside: What to do at each stage, including the “Are-You-Sure” questionnaire and final confirmation checklist.

Keep withholding until approval; after approval, stop FICA/SECA, request refunds, and adjust payroll. Included: Two letters—“notice of filing” and “approval received”—to keep HR aligned.

The church stops FICA withholding; you update Form W-4 and keep copies of your approved Form 4361. Included: HR coding sheet + onboarding script.

Use faith-based reasons that reflect your convictions—RevPropeller provides accepted language you can tailor. Inside: Choose from 25 common objections with detailed reasoning, auto-generated into a letter.

Yes—this is a matter of conscience. You certify that, based on your religious principles, you’re opposed to receiving public insurance for services performed as a minister. Inside: A biblically thoughtful selection tool + board/denomination briefing.

Lead with clarity and respect. We show how to turn the “safety net” into a “financial trampoline” that can outperform Social Security, with full integrity. Included: Denominational briefing memo + elder-board Q&A.

After approval, many churches reallocate the 7.65% employer FICA into your compensation and you redirect personal savings into a principle-protected, tax-advantaged plan. Tip: Use our onboarding timing to secure the raise smoothly.

We model conservative ranges, highlight sequence-of-returns risk, and compare to your RSSA® baseline. Inside: Side-by-side lifetime cash-flow projections with guardrails.

Your exemption applies only to ministerial earnings; non-ministry W-2 or self-employment remains covered by FICA/SECA and can add credits.

Use a written designation before payment—contract, budget, or board minutes/resolution—and keep it on file annually. Included: Auto-renew language + Housing Allowance Request.

Churches typically exclude designated housing from Box 1 and may show a notation in Box 14 (for clarity) while ministers handle SECA via Schedule SE. Inside: W-2 sample sheet for HR.

Ministers performing services for a church are generally employees for income-tax purposes and should receive Form W-2, even though they pay SECA. Included: Hiring packet with minister notes.

Use our templated board minutes, letters, and HR scripts. Included: W-2 coding quick card + two ready-to-send emails; Inside: Live Q&A if unique questions arise.

An accountable plan reimburses documented business expenses tax-free; flat stipends are generally taxable. Inside: Policy template your board can adopt in one meeting.

Most payments from the employing church for services are taxable compensation. Tip: Our guide helps you separate benevolence vs. compensation cleanly.

Churches can increase compensation (not “match” FICA) and the minister handles SECA. Included: Sample wording that avoids misclassification.

Adopt and follow an accountable plan: business purpose, timely substantiation, and returns of excess. Inside: Receipt policy + monthly checklist.

Each qualifying employer should designate housing in writing; ministers still handle SECA unless exempt. Included: Multi-employer setup guide.

Use an annual board resolution with auto-renew language and individual Housing Allowance Requests on file. Included: Ready-to-adopt wording.

Maintain: designation minutes, expense policy, W-2 copies, and support letters. Included: 12-item audit-ready folder checklist.

Most states follow federal housing-allowance rules; Pennsylvania treats it differently. Inside: One-pager of state notes for finance teams.

Keep your records continuous; update designations as needed. Tip: Our mid-year transition checklist keeps you compliant.

A 403(b)(9) church plan is a church-sponsored arrangement; many allow retired ministers to exclude a designated rental allowance from income tax on distributions. Inside: Retirement brief showing how today’s records support tomorrow’s exclusion.

Many 403(b)(9) church plans—when properly designated—permit a retirement housing allowance. Included: Questions to confirm your plan’s language with the administrator.

The federal exclusion is based on minister status and plan designation; state treatment may vary. Tip: Our move-state checklist helps you retain benefits.

It depends on bracket, timeline, and risk tolerance. Inside: Side-by-side of Roth, pre-tax, and principle-protected IUL from Episode 2 – IUL to build a resilient mix.

Yes—the cash flow freed by housing allowance can fund principle-protected, tax-advantaged growth aimed at lifetime non-taxable income. Enroll now: Custom plan session connects the dots.

We model risk-control strategies and show historical stress tests; our plans include a zero-market-loss solution so principal is secure. Inside: Volatility guardrails brief.

Prioritize protection first (income/health), then tax-efficient accumulation. Included: A 90-day catch-up plan with specific, doable steps.

Great—this helps you do even better. Many pastors discover missed housing allowance savings, dated insurance structures, or tax-inefficient allocations. Included: A “tune-up” checklist for quick wins. Enroll now to pressure-test your current plan.

Expect Form 1040 with Schedule SE for SECA unless exempt, and other schedules as applicable. Inside: One-page filing map for ministers.

Yes, if you expect to owe $1,000+. Use Form 1040-ES or set up voluntary withholding with your church. If you follow the RevPropeller plan, you can say goodbye to estimates on ministerial income. Included: Pay-period calculator.

Designated housing is excluded from Box 1 wages (often noted in Box 14), but included for SECA unless exempt.

Board designation, annual FRV estimate, receipts, W-2, and approved Form 4361 (if applicable). Included: Audit-ready folder checklist.

We flag exceptions (like Pennsylvania) and provide per-state notes. Inside: Personalized state brief.

Provide designation, FRV support, receipts, and—if opting out—your approved Form 4361. Included: Response packet template + cover letter.

Typical triggers → RevPropeller fixes
• No written, pre-year housing designation → Included: Auto-renew Board Resolution + Request.
• Weak FRV support → Included: FRV worksheet + broker-letter email + annual reminder.
• W-2 coding mistakes/SECA confusion → Inside: HR quick card and notice letters (post-4361 approval).
• Home office deduction taken incorrectly → Tip: Consult your tax advisor.
• Mixed personal/business reimbursements → Included: Accountable Plan kit.
• Unusual charitable-giving ratios without proof → Tip: Contribution-substantiation guide.

Keep a simple file: Board Resolution, FRV support, W-2, Accountable Plan receipts, and (if applicable) approved Form 4361. Included: Quarterly checklist + templates.

Ministry W-2 is clergy income; outside Schedule C work is non-ministry and follows regular FICA/withholding rules. Inside: Flowchart to separate streams.

Both qualify; renters document rent and household costs. Included: Renter mini-checklist tied to the lesser-of-three rule.

Keep designation in place, update FRV, store closing docs, and apply the lesser-of-three at filing. Inside: Mid-year move worksheet.

Parsonage FRV can be excluded while provided; once you buy, have a cash allowance designated before payment. Included: Switch-over language your board can adopt.

Use local comparables or a property manager’s letter in the host location; retain currency/utility notes. Tip: Sample FRV email (U.S. + international).

Eligibility depends on ministerial services and ordination/licensure/commissioning. Inside: Role-by-role eligibility chart.

Each employer handles income under its rules; only ministerial earnings connect to housing allowance/SECA rules. Tip: Split-income worksheet.

Adopt unified auto-renew language and issue individual Housing Allowance Requests per pastor. Included: Turnkey package to deploy across campuses.

If used as your principal residence and paid by you, it may count under the lesser-of-three caps. Tip: Document dates and costs.

Handle carefully to avoid double benefits. Inside: Simple “no double-dip” guide.

Yes, if you are the minister and you pay the qualifying costs. Tip: Keep proof of your payments + FRV estimate.

No—designation must occur before payment. Included: “Fix-it” script for moving forward correctly.

Yes. Plain-English, step-by-step lessons with short checklists. Inside: One-page summaries + “do this next” boxes. Enroll now to try the first 10-minute setup.

Yes. Self-paced and built for full-time pastors. Even 1–15 minutes a week moves you forward. Lifetime access. Included: Quick wins in Episode 1.

Inside the course:
• Episode 1 – Housing Allowance (Request, Board Minutes/Resolution, FRV worksheet).
• Episode 2 – IUL / Private Pastor Protection Plan.
• Episode 3 – Redirect Social Security (Form 4361 walkthrough, conscience builder, timing emails/letters).
• Episode 4 – Receive Social Security After Opt-Out (eligibility paths, 40-credit map).
• Downloadables: Notice to Church (filed), Approval Letter (approved), W-2/HR guides, checklists.

Many pastors complete the housing allowance setup in one sitting and submit Form 4361 shortly after. Enroll now: Start with Episode 1’s 10-minute paperwork segment.

Self-paced video with guided templates; request reviews for critical documents. Included: “First 7 days” checklist.

Lifetime access with periodic template updates. Tip: We’ll email when forms change.

If it’s not a fit, we refund—no hoops. Enroll now: Try the setup step-by-step with confidence.

Yes—download, fill, and hand to your team. Included: Housing, W-2 guidance, and Social Security letters.

Yes—document reviews and email templates are available. Inside: A “send for review” button under each module.

Yes—team enrollments and leader dashboards. Included: Rollout kit with sample emails and meeting slides.

Yes—inside the course you’ll see anonymized examples and before/after paychecks.

We cite IRS Publication 517 and official instructions, provide conservative language, and encourage record-keeping that stands up to scrutiny.

We’re an education and support platform; you’ll see clear not-advice disclosures and referrals where appropriate.

Yes—request a referral and we’ll connect you.

We use secure storage for uploaded documents and never share without permission.

Pricing is shown at checkout. Once paid, you get immediate, lifetime access to all courses and templates. Start today and unlock everything.

Yes—email Ray (Ray@RevPropeller) for team pricing; onboarding multiple pastors is simple.

Yes—download a PDF receipt instantly at checkout.

You’ll receive a login link by email; bookmark your Kajabi dashboard. Tip: Whitelist our domain to prevent spam filtering.

Yes—add an authorized viewer in your account settings.

Within one business day (often within minutes during office hours).

You’re covered by our No-Risk Guarantee. If the program isn’t a fit, we’ll refund you. Enroll now and start risk-free.

Reply to your purchase email or use the in-app link—refunds are prompt.

Lead with stewardship and transparency. Included: A brief for elders explaining why housing allowance and opt-out decisions align with biblical prudence.

Reasons vary (church-based provision, stewardship, conscience). Inside: A selection tool generates a statement and reasoning that reflects your convictions.

Stay factual: you’re replacing a government program with a principle-protected, tax-advantaged plan designed to care for your family. Tip: Our 3-sentence explanation keeps it simple.

Keep documentation clear, use accountable plans, and invite third-party review when needed. Included: A “who does what” matrix.

Show the IRS references, your approved Form 4361, and the math. Inside: A one-page myth-buster with citations to IRS Publication 517.

Designations must be before payment; fix it going forward with auto-renew language. Included: Corrective steps you can take now.

Your exclusion is limited by the lesser-of-three rule—actual, FRV, or designated amount. Tip: Request a percentage-based designation (often 100%) so you’re never capped by an early guess.

We review the reason, correct it, and refile if eligible—or build a redirection plan using covered employment credits. Included: A step-by-step fix-it guide with sample letters.

Non-ministry work remains covered by FICA and can build credits toward Social Security and Medicare. Inside: A credits-tracking worksheet.

Each minister has a separate housing election and SECA status; we show smart ways to coordinate designations and benefits.

Most states mirror federal rules; see our note on Pennsylvania. Tip: Use our moving-state checklist to re-confirm FRV and local items.

Expect requests for the board designation, FRV support, receipts, Form W-2, and (if applicable) approved Form 4361. Included: An audit packet template with a cover letter and index.