Parsonage allowance is upheld by the United States Court of Appeals

On March 15, 2019, the United States Court of Appeals for the 7th District Circuit Court reversed that court’s decision that excluding a housing allowance from a ministers income is unconstitutional.

There has been concern and uncertainty ever since that lower court’s decision. Although, the exclusion has been allowable since shortly after the time when the United States had an income tax.

The challenge was raised by an organization called the Freedom From Religion Foundation, which has raised similar challenges in the past and has stated that they may continue to pursue this, possibly even requesting the US Supreme Court to rule on it.

In the meantime, the clergy housing allowance is available, which is good news for clergy around the country.