- Serving Taxpayers Since 1993
- File In Person or Fully Virtual
- Year-Round Help, Not Just Tax Season
- Nonprofit & Church Specialists
- Flexible Refund & Payment Options
Katy and Fulshear are full of growing churches, and many of their pastors have a tax return unlike anyone else in the pews. A minister can be an employee for income tax and self-employed for Social Security at the same time. Add a housing allowance, and with no Texas income tax in the mix, the whole job rests on getting the federal return right. We work with churches and ministers often, so these rules are familiar ground for us.
When You Need Clergy and Minister Tax Returns
You need a preparer who knows these rules if you are an ordained or commissioned minister, if your church sets a housing allowance for you, or if you earn honorariums for weddings, funerals and guest sermons. It matters most if you owed a large amount last year, because churches do not withhold Social Security or Medicare from a minister’s pay.
IRS Publication 517 for clergy and religious workers lays out the split. Your housing allowance is excluded for income tax, yet it still counts when figuring self-employment tax. So the allowance lowers one tax and is added back for the other.
Our Clergy and Minister Tax Return Process
We start with your W-2, the board or council minutes that set your housing allowance, and what you actually spent on housing. The amount you can exclude is capped at the smallest of three numbers: what the church set, what you truly spent, and the fair rental value of the home with furnishings and utilities. Then we figure self-employment tax on Schedule SE, add any honorariums and prepare your federal return.
If you owed a lot last year, we help you plan quarterly estimated payments or ask the church to hold back extra income tax from each check to cover it.
Clergy and Minister Tax Return Cost in Katy
The fee depends on how many pieces your return has. One church W-2 with a housing allowance is simpler than pay from several churches, outside speaking fees, a spouse with a business, or a church-owned parsonage. We look at your papers and give you the fee first.
Why Choose Us for Clergy and Minister Tax Returns
Church and nonprofit work is a core part of what our business does, not an add-on. We also help churches with payroll, nonprofit filings and housing allowance setup, so we see a pastor’s pay from both sides. We have prepared returns since 1993, and our Katy office on Kingsland Boulevard is open all year.
Housing Costs in a Growing Suburb
Many Katy pastors live in newer homes with a mortgage, a property tax bill and HOA dues. Those count as housing costs when you compare your spending to the allowance. Because the fair rental value can end up as the lowest of the three numbers, it pays to check that figure each year rather than reuse an old one.
Pastors are among the many households we serve, so see our tax filing help for Cinco Ranch families and the rest of our Katy work.
Common Questions
Can my church name a housing allowance after the year is over?
No. The church has to set the allowance ahead of time, usually in board minutes or the budget. It cannot be named after the fact for pay you already received. We can help the church word it before each new year.
Do I owe tax on wedding and funeral fees?
Yes. Fees paid straight to you for weddings, funerals and guest preaching are self-employment income. Keep a simple log of each one, and we report them on your return along with any costs tied to them.