Does Clergy Parsonage – Housing Allowance for Pastors count for
Covered CA & Medi-Cal MAGI Modified Adjusted Gross Income?
Covered CA (& Medi Cal) - Calculate - #Countable Sources of MAGI Income
Short Summary
Clergy, Rabbi, Priest & Pastor Income for housing allowance
Parsonage – Housing Allowance for Clergy, Pastors, #Priests, Rabbi’s, Iman’s
- A minister – pastor ordained, licensed or commissioned who receives a housing allowance may exclude the allowance from gross income to the extent it is used to pay expenses in providing a home. Generally, those expenses include
- rent,
- mortgage interest,
- utilities, repairs, and
- other expenses directly relating to providing a home.
- The amount excluded cannot be more than the reasonable compensation for the pastor – minister’s services.
- If you own your home, you may still claim deductions for mortgage interest and real property taxes. If your housing allowance exceeds the lesser of your reasonable compensation, the fair rental value of the home, or your actual expenses, you must include the amount of the excess in income.
- The minister’s employing organization must officially designate the allowance as a housing allowance before paying it to the minister.
- Thus, parsonage does NOT appear (check with your own CPA or Tax Attorney) to count toward MAGI, subsidies – advance premium tax or Medi-Cal Qualification.
- Learn More IRS Tax Topic 417
- Thus, parsonage does NOT appear (check with your own CPA or Tax Attorney) to count toward MAGI, subsidies – advance premium tax or Medi-Cal Qualification.
- Housing Allowance for Pastors Clergy Video
- irs.gov/Earnings for Clergy Housing Allowance /tc417
- irs.gov/ministers-compensation-housing-allowance
- How to fill out a Minister’s W-2 Form
- Ready-to-use resolution language for church board to set a clergy housing allowance
- HOW MUCH HOUSING ALLOWANCE CAN A PASTOR CLAIM?
FAQ
- Question I am a pastor who is looking to get health insurance for Covered California. Do I have to include my housing allowance as part of my gross income? Do you know anything about applying for Covered California and using the salary only portion of clergy compensation (excluding housing allowance) to qualify for financial assistance for health care?
. - Answer What do you expect to show on line 11 adjusted gross income of your 1040 form? MAGI Income.
- Brokers nor Covered CA can give tax advice. However, just follow the rules above and you should be able to exclude your housing allowance.
- Click here for instructions to appoint us as your agent so that we can get compensated for helping you. No extra charge
.
- Click here for instructions to appoint us as your agent so that we can get compensated for helping you. No extra charge
- Brokers nor Covered CA can give tax advice. However, just follow the rules above and you should be able to exclude your housing allowance.
- I’m a minister and receive a salary plus a housing allowance. Is the housing allowance considered income and where do I report it?
All our plans are Guaranteed Issue with No Pre X Clause
Quote & Subsidy #Calculation
There is No charge for our complementary services
Watch our 10 minute VIDEO
that explains everything about getting a quote
- Our Quote Engine Takes all the complexity out of using pencil and paper to figure out the premiums per the Obamacare/ACA rules under CFR §1.36B-3 *
- Get more detail on the Individual & Family Carriers available in CA
Tax Guides – Covered CA Certified Agent – Etc.
Calculate your Covered CA MAGI Income
take #Line8b 11 Adjusted Gross income then add line 2a, 6a & 8 (Foreign Income)
- 1040 IRS Annual Tax Form
- Schedule 1 Additional Income & Adjustments to Lower your MAGI Income
- Estimate next years MAGI Income?
- Get instant quotes, subsidy calculation and coverages
- NO ASSET TEST for MAGI based subsidies in Covered CA or MAGI Medi Cal Qualification. Steve's VIDEO
- Nor is there a lien against your estate for Covered CA or MAGI Medi Cal
#VITA Volunteers Income Tax Assistance
get your taxes done Free
- Publication 3676 with more details on VITA
- Our Webpage on VITA & Covered CA prohibition to give tax advice
- More places to find FREE tax help Covered CA list
- Turbo Tax -
- See more tax calculation links in the section on IRS Publication 974 Premium Tax Credit
**********************************
#Covered CA Certified Agent
No extra charge for complementary assistance
- Appoint us as your broker
- Get Instant Health Quotes, Subsidy Calculation & Enroll
- Videos on how great agents are
Brother - Sister - Sibling Side Pages Subpages
View our website with your Desktop or Tablet for the most information
We have been denied Med-cal for our son due to the clergy housing allowance we receive.
Every where I look online it shows that it shouldn’t count.
It shows on my husband’s paystub as clearly a deduction for housing and NOT income, yet they [Medi Cal] used it to calculate income and deny coverage.
I wonder if the case worker just doesn’t understand this situation and we need assistance to help them exclude the housing allowance from the MAGI. Our taxes do.
We’ve added some links above about ALL the requirements, like the Church passing a resolution to pay parsonage and VITA volunteers to give tax advice.
See also our links to Medi Cal, above. Try the main one contact @ Medi Cal..” I’ve had good luck getting them to respond and help.
Be sure to give them everything to state your case.
We did contact Medi Cal for an actual client and Medi Cal apologized for lack of training to the counties.
I suggest that you file an appeal with Medi Cal…
Why don’t you see what your premium would be in Covered CA both with your income including parsonage and without.
The numbers you had in the termination letter from Medi Cal, seem to indicate the children might be eligible to $80k/year, but the adults are only eligible to $21k/year – See chart and/or get quotes.