Clergy housing allowance calculator
Drop your 2026 housing costs. Glebetally works out the tax-free housing allowance, the excess for line 1h and your self-employment tax by IRS Pub. 517 — in your browser, nothing uploaded.
The three limits
From IRS Publication 517: if you own or rent your home, you can exclude from income tax the smallest of the amount your church officially designated in advance, the amount you actually spent to provide a home, and the home's fair rental value (furnished, plus utilities). The rest of the allowance is taxable and goes on Form 1040 line 1h.
A worked example
The app's sample: a fictional pastor who owns a home, with a $28,000 housing allowance designated for 2026, a $46,000 salary and a fair rental value of $24,000 a year furnished. Mortgage, property tax, insurance, repairs, a sofa and utilities through October project to $27,907.80 for the year. The smallest of the three limits is $26,316.00, so that much is excluded from income tax and $1,684.00 of excess allowance goes on Form 1040 line 1h. The whole $28,000 still counts for self-employment tax: net earnings for Schedule SE are $75,500.00 and SE tax is $10,667.81.
What you get
- The exclusion: the smallest of the designated allowance, your actual costs and the fair rental value plus utilities (Pub. 517 Worksheet 1).
- The excess allowance to report on Form 1040 line 1h.
- The nondeductible share of Schedule C expenses (Worksheet 2).
- Net earnings for Schedule SE with the allowance included, and the SE tax (Worksheet 3).
- Your yearly cost pace, to pick the amount for next year's designation.
- Checks: no designation, no fair rental value, food or internet rows, duplicates and other-year rows.
Files it reads
A CSV or Excel file with a date and an amount on each row — a bank or card export works. Rent, mortgage, property tax, insurance, repairs, furnishings and utilities are recognized; groceries, phone, internet and transfers are left out and listed. Put “Housing”, “Utilities” or “Not housing” in a Category column to decide a row yourself. Or skip the file and type your totals.
Your numbers stay on your computer
Glebetally reads your file with JavaScript in this browser tab. Your costs are never uploaded, and closing the tab clears them.
How it works
- Drop your 2026 housing costs (CSV or Excel) — or try the sample, download the template, or type totals.
- Enter the designated allowance, the fair rental value and your salary.
- Read the exclusion, the line 1h excess and the SE figure, and give them to whoever prepares your return. With Pro, take the designation draft to the December meeting.
FAQ
What does Glebetally do?
It reads your 2026 housing costs and works out IRS Publication 517 Worksheets 1–3: how much of your housing allowance (or parsonage value) is excluded from income tax, the excess allowance to report on Form 1040 line 1h, the nondeductible share of Schedule C expenses, and your net earnings and tax for Schedule SE. It doesn't file anything.
Is my data uploaded?
No. Your file is read by JavaScript in your browser tab and never sent to us or anyone else. Costs aren't stored, so closing the tab clears them. Settings can be saved in this browser.
How much of my housing allowance is tax-free?
If you own or rent, the smallest of: the amount your church designated in advance, the amount you actually spent to provide a home, and the home's fair rental value furnished plus utilities (Pub. 517). For a parsonage, its fair rental value plus any utility allowance up to actual utility costs.
Is the housing allowance subject to self-employment tax?
Yes, unless you have an approved Form 4361 exemption. The whole allowance, or the parsonage's fair rental value plus any utility allowance, is added to your net earnings for Schedule SE (Pub. 517 Worksheet 3).
When must the allowance be designated?
In advance of payment, by an official action of the church — usually at the December meeting for the next year. Glebetally's cost pace helps pick the amount; Pro drafts the resolution text.
Which files can I use?
CSV, tab-separated or Excel with a date and an amount on each row; a description and category are optional and help sort the rows. Or skip the file and type your totals.
What's free?
Importing any number of rows, the exclusion, the excess allowance, Worksheets 1–3, SE tax and every check, plus three categories of the cost breakdown on screen and in print (with a footer). Pro shows and prints every category without the footer and exports the Excel workbook, the costs CSV and the 2027 designation draft.
What isn't covered?
State rules, Schedule A itemized deductions, retirement-plan housing distributions, ministers who are also church employees under FICA, dual-status aliens, and the reasonable-compensation test. Internet, cable and phone are left out because Pub. 517 doesn't list them — add them yourself if your adviser says they count.
Is this tax advice?
No. Glebetally applies IRS Publication 517 Worksheets 1–3 to the data you provide. Ask your tax adviser what applies to you.