Under Section 107 of the Internal Revenue Code, clergy can exclude a portion of their income from income tax if it is spend on housing expense, provided the church has designated a portion of the income as "Housing Allowance" in advance of it being paid to the clergy person. In the Great Plains Conference of the United Methodist Church, pastors with the designation "District Superintendent Assignment" are not eligible for this tax benefit. If you have questions about the tax status of your pastor, contact your district superintendent office.
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