Does Clergy Parsonage – Housing Allowance for Pastors count for
Covered CA & Medi-Cal  MAGI  Modified Adjusted Gross Income?

clergy housing - magi income

Clergy, Rabbi, Priest  & Pastor Income for housing allowance

Introduction to excluding Clergy Housing Allowance from MAGI Income

A licensed, commissioned or ordained minister may be able to exclude from income the fair rental value of a home (a parsonage) or a housing allowance provided as compensation for ministerial services performed as an employee. A minister who is furnished a parsonage may exclude from income the fair rental value of the parsonage, including utilities.  However, the amount excluded cannot be more than reasonable compensation for the minister’s services.

Parsonage – Housing Allowance for Clergy, Pastors, #Priests, Rabbi’s, Iman’s


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2 comments on “Clergy – Housing Allowance? Covered CA MAGI Income

  1. 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

      “​Your benefits will continue pending review (Aid Paid Pending) if the hearing is filed within 10 days of receiving the NOA. This process allows you to continue receiving services while the case is being reviewed.” Fair Hearing

      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.

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