Clergy Housing Ruling
On Friday, October 6, 2017, Judge Barbara Crabb of the Federal District Court of the Western District of Wisconsin ruled that the exclusion from taxation of a minister’s cash housing allowance is unconstitutional. The exclusion allows a minister to exclude from taxable income a cash housing allowance designated and paid by his or her church.
The Church Alliance, a coalition of the chief executive officers of 38 church benefit programs that CPG works with on legislative and regulatory matters, prepared a summary of the ruling that you can view here. We believe that this decision almost certainly will be appealed, and we will continue to monitor the case and keep you abreast of future updates.