Get the free Housing Allowance Exclusion Worksheet

This worksheet is used by licensed ministers to estimate their housing costs and determine the allowable housing allowance exclusion for tax purposes.

How to fill out housing allowance exclusion worksheet

How to fill out Housing Allowance Exclusion Worksheet

1. Obtain the Housing Allowance Exclusion Worksheet from the IRS website or your tax professional.
2. Fill in your name, address, and Social Security number at the top of the worksheet.
3. Determine your qualifying housing expenses including rent, utilities, and property taxes.
4. Enter the amounts for each category of housing expenses in the designated sections.
5. Calculate the total eligible housing expenses by summing all entries.
6. Follow the instructions to determine the amount of your housing allowance exclusion.
7. Review your entries for accuracy before finalizing the worksheet.

Who needs Housing Allowance Exclusion Worksheet?

1. Clergy members who receive a housing allowance as part of their compensation.
2. Employees of a church or qualified religious organization who live in a home provided by their employer.
3. Taxpayers who wish to exclude part of their income from taxation related to housing allowances.

People Also Ask about

How do I report housing allowance on my tax return?

The payments officially designated as a housing allowance must be used in the year received. Include any amount of the allowance that you can't exclude as wages on line 1h of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors.

How do I claim housing exclusion?

To claim the Foreign Housing Exclusion, file Form 2555 with your U.S. tax return, detailing your income, housing expenses, and residency status. It's crucial to claim the housing exclusion before the foreign earned income exclusion on the same form. This ensures you maximize your tax benefits effectively.

What expenses can be used to justify the housing allowance exclusion?

You may legitimately include the following: Rent, principal payments, or down payments plus the cost of buying the home; Taxes and mortgage interest (even if these are includable as itemized deductions); Utilities (heat, electric, basic telephone, water, etc.);

Are housing allowances tax deductible?

The housing allowance is an exclusion from income, not a deduction. This means that the amount claimed is never reported to the Internal Revenue Service (IRS) as part of your annual income.

For pdfFiller’s FAQs

What is Housing Allowance Exclusion Worksheet?

The Housing Allowance Exclusion Worksheet is a form used by ministers and certain religious workers to calculate the housing allowance that can be excluded from their gross income for federal income tax purposes.

Who is required to file Housing Allowance Exclusion Worksheet?

Ministers and religious workers who receive a housing allowance as part of their compensation are required to file the Housing Allowance Exclusion Worksheet to determine the allowable exclusion amount.

How to fill out Housing Allowance Exclusion Worksheet?

To fill out the Housing Allowance Exclusion Worksheet, individuals must provide details about their housing expenses, including rent or mortgage payments, utilities, and other related costs, and calculate the amount of the housing allowance that can be excluded from taxable income.

What is the purpose of Housing Allowance Exclusion Worksheet?

The purpose of the Housing Allowance Exclusion Worksheet is to help eligible ministers and religious workers accurately determine and report the portion of their housing allowance that can be excluded from taxable income, reducing their total tax liability.

What information must be reported on Housing Allowance Exclusion Worksheet?

The information that must be reported on the Housing Allowance Exclusion Worksheet includes the total amount of housing allowance received, actual housing expenses incurred, and any other relevant financial details that support the exclusion calculation.