Pastors and certain other church workers are allowed to deduct that portion of their salary used for housing from their taxable salary. That “housing allowance” amounts to a huge tax break. As we blogged about earlier, the Freedom From Religion Foundation has challenged that provision in federal court. But in a parallel case, the United States Supreme Court has ruled that the atheist group lacks “standing” to sue on a similar tax issue, since they have not been materially harmed by the current law. Some experts are saying that this deals a “lethal blow” to the housing allowance challenge. See Church LawandTax.com.
Pastors’ housing allowance tax break update
June 17, 2011 by 24 Comments