Tuesday, October 10, 2017

Federal judge strikes down housing allowance for clergy

From Crux Now-

A federal judge in Wisconsin has struck down as unconstitutional a law that gives clergy tax-free housing allowances, in a ruling that could have far-reaching ramifications for religious leaders, who could be facing new taxes which will threaten their ministry.

Under the federal law passed in 1954, a “minister of the gospel” doesn’t pay income taxes on compensation that is designated part of a housing allowance. The Freedom From Religion Foundation, based in Madison, argued that the law discriminates against secular employees.
The benefit saves clergy, including non-Christian religious leaders, $800 million a year in taxes, according to the latest estimate from the congressional Joint Committee on Taxation.


Under the law, housing allowances paid as part of clergy salary can be subtracted from their taxable income.


More here-

https://cruxnow.com/church-in-the-usa/2017/10/09/federal-judge-strikes-housing-allowance-clergy/

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