Effective January 1, 2010, all congregations with pastors living in church-owned parsonages are asked to begin paying utilities for the parsonage directly to the utility company instead of through cash allowances to the pastor. Guidance on the details of doing this, including who this applies to, amounts, utility categories, etc., can be found on the Downloads page. If you have further questions, please contact your district superintendent for clarification.
2 Responses to “Utility Guidance Available”
Leave a Comment
(Comment terms & conditions)
I do not see in the guildline how this is to be reported to the IRS?
This is considered to be a housing expense by the IRS just like a housing allowance. You are not required to put it on the W-2 but can report it under Other information if you would like. If you do not report it on the W-2, then you should notify the clergyperson of the amount paid on his/her behalf for their individual tax reporting purposes.