OBBB Reform and IRS Rules for Clergy Housing Allowance

The clergy housing allowance is one of the most powerful — and most misunderstood — tax benefits in the entire Internal Revenue Code. Did you know ministers can legally exclude a portion of their income from federal income tax, yet still owe self-employment tax on that same amount? It's a nuance that trips up even experienced tax professionals, and getting it wrong can be costly for your clergy clients.
This course breaks down everything tax preparers and planners need to know about the ministerial housing exclusion — from its historical roots in U.S. tax law to its practical application in today's returns. Instructor Bill Davidson draws on more than 35 years of clergy tax experience and firsthand ministry knowledge to walk you through how to determine the proper exclusion amount, how the rules differ for cash allowances versus church-provided housing, and how to integrate this benefit into a broader ministerial compensation planning strategy.
You'll also examine the latest changes under the One Big Beautiful Bill Act (OBBBA) of 2025 and how those provisions may affect your faith-based clients going forward. Whether you're new to clergy returns or looking to sharpen your housing allowance expertise, this course delivers the practical tools and clarity needed to advise with confidence.