Da form 5960-2026

Example: A church pays its pastor an annual salary of $45,000, of which $10,000 is designated as a housing allowance. The pastor owns her own home and determines the fair rental value of her furnished home plus projected utilities is $10,000 per year.

Who qualifies for a housing allowance depends heavily on the specific program, but generally includes U.S. military service members without government housing, ministers receiving designated compensation, and low-income individuals in some countries (like Norways Husbanken or UKs Local Housing Allowance) based on need, income, and household size. Eligibility hinges on factors like dependency status (military), official designation (clergy), location, income levels, and the type of housing used, with specific rules for each situation. For U.S. Military Members (BAH/OHA) Basic Allowance for Housing (BAH): For service members stationed in the U.S. not living in government housing, based on location, pay grade, and dependency. Overseas Housing Allowance (OHA): For members stationed overseas without government housing. Dependency: Crucial for BAH/OHA; members with dependents get higher rates; unaccompanied members on overseas tours may get BAH at the with dependents rate for their dependents U.S. zip code. BAH-DIFF: For members paying child support. For Ministers (Clergy) IRS Rules: Ministers can exclude a designated housing allowance from taxable income if its a portion of their salary, not more than reasonable pay, and used for housing expenses (rent, mortgage, utilities, etc.). Official Designation: The allowance must be officially designated in advance by the church. Eligibility: Must meet IRS criteria for minister of the gospel, usually involving ordination, performing sacerdotal functions, or specific religious duties. For Low-Income Individuals (Country-Specific Examples) Norway (Husbanken): Adults over 18 (not in initial military service), families with children under 18, meeting income/expense thresholds for specific housing standards (own entrance, kitchen, etc.). UK (Local Housing Allowance): For those on benefits like Universal Credit, eligibility depends on household size, number of bedrooms needed, and local rates, with specific rules for single people under 35. How to Check Your Eligibility Military: Consult your finance office or official military pay websites. Clergy: Work with your church and a tax professional; review IRS guidelines. Other Programs: Check your local government housing authority or social services website. AI can make mistakes, so double-check responsesMinisters Compensation Housing Allowance | Internal Revenue ServiceSep 30, 2025 If you receive as part of your salary (for services as a minister) an amount officially designated (in advance of paymIRS (.gov)Everything Clergy Should Know About Their Housing Allowance - Ascension CPAAscension CPA

If you rent a property or room from a private landlord, the Local Housing Allowance (LHA) can be used to work out how much Housing Benefit you can get. The amount of benefit you get will depend on where you live and who lives with you. Payments will usually made to you and it is up to you to pay your landlord.