Our interpretation of the qualifications of a minister for federal tax purposes is taken from Richard R. Hammar's Church & Clergy Tax Guide. It states that a minister is one who:

• Administers sacraments
• Conducts religious worship
• Has management responsibility in a local church or religious denomination (control, conduct, or maintenance of a religious organization)
• Is ordained, commissioned, or licensed, and
• Is considered to be a religious leader by his or her church or denomination

A person must be performing a minimum of three of the above requirements to qualify. Also, the local church or institution has to be willing to designate the pastor's housing allowance in the minutes of the church Board meeting prior to the beginning of the year. If this is not done annually, the housing allowance is not justifiably claimed.

The credentialing process begins with an endorsement from the church and the regional conference. Each of those bodies assists in determining whether a ministerial license is appropriate.

The granting of the license does not qualify one for a housing allowance. It is up to the holder of the license to prove he or she qualifies by being involved in the ministerial acts of the church as outlined above and in Section 9.1 of the proposed rules. Credentialling by the denomination does not automatically qualify one for the housing allowance. No one can guarantee or promise the housing allowance. If ever audited, the pastor would have to demonstrate to the IRS (if in the United States), that the qualifications are met. 

--- (Edited on 8/12/2008 12:44 pm [GMT-0500] by daniellen) ---