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

Covered CA (& Medi Cal) - Calculate - #Countable Sources of  MAGI Income countable 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.

Earnings for Clergy, Pastors, #Priests, Rabbi’s, Iman’s

  • A minister – pastor  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.
    • Definition clergy – you must be ordained, licensed or commissioned.
  • 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.  IRS Tax Topic 417

Calculate your  Covered CA MAGI Income

take #Line8b 11 Adjusted Gross income then add line 2a, 6a &   8 (Foreign Income)


MAGI Income from 1040

Child Pages, Site Map  & Other FAQ’s in the MAGI Section



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

  1. 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?

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