From The Cafe-A renewed lawsuit challenging the income tax break on clergy housing allowances (sometimes called the parsonage exemption) has been upheld by the same federal district judge who ruled the law unconstitutional in 2013.
As members of clergy and their Vestries know, a portion of a minister of religion’s compensation package may be designated as housing allowance, and exempted from income taxes (although not from the minister’s self-employment taxes). Find a helpful background to the housing allowance exemption here.
US District Judge Barbara Crabb ruled in 2013, and again in Wisconsin on Friday, that the provision is unconstitutional because it provides a benefit to some people but not to others. Her 2013 ruling was reversed on appeal, but the Freedom from Religion Foundation believes that it has the grounds for that reversal covered this time around.
More here-
https://www.episcopalcafe.com/federal-judge-rules-clergy-housing-tax-exemption-unconstitutional-again/
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