Example: Reverend Smith's designated housing allowance is 40% ($16,000) of his $40,000 salary. A Common Myth. The housing allowance must be designated prospectively by the church. Expense information for use in bankruptcy calculations can be found on the website for the U.S. prior year’s allowance is used. Maximum allowances for monthly housing and utilities and transportation, known as the Local Standards, vary by location. Unfortunately, for this pastor, he did not report the employer’s portion of his Social Security (paid by the church) as income. Chapters 1 through 3 define basic institutional arrangements and terms and conditions of program assistance (e.g., household eligibility criteria, housing standards, assistance formula). Housing and Utilities. We can assist you with this process and can even help you with your books going forward. Local Standards: Does Allowance include IRS's additional $200 allowance for Operating Expense for Older/High Mileage Vehicles? This church was growing weekly with new members and it was becoming more than the staff could handle. Past court cases have shown us that the IRS doesn’t approve of claiming two houses in two locations at once. Within housing and utility standards, the IRS includes the total cost of housing, such as: rent or mortgage payments; insurance; property taxes and utility costs, such as telephone, water, electricity and maintenance costs. Still, the use of a written designation is preferable and highly recommended. for the under age 65 category. While there is no list of allowance expenses provided by the IRS, it is understood that most reasonable household expenses can be included in the housing allowance. Note: Box 14 on a W-2 is an "informational" box that employers use to provide information to their employees. A housing allowance may be excluded from income for federal income tax purposes, but not for SECA tax purposes. 2020 Allowable Living Expenses Housing Standards County State Name 2020 Published Housing and Utilities for a Family of 1 2020 Published Housing and Utilities for a Family of 2 2020 Published Housing and Utilities for a Family of 3 2020 Published Housing and Utilities for a Family of 4 2020 Published Housing and Utilities for a Family of 5 Union County Arkansas. Local Housing Allowance rates. The Seventh Circuit panel ruled the housing allowance is constitutional under two of the U.S. Supreme Court’s church-state precedents. This means he had been unknowingly under-reporting his income to the IRS since he became pastor of that church. 55 - 2007-04-02 - 13 , Above What does that mean? In such a case, documentation of such actual expenses and demonstrates that such actual expenses are reasonable and necessary. What does that mean? These rents are being paid by people with the same number of … When providing either a parsonage or housing allowance there are specific IRS requirements for authorization and reporting which must be followed. Understanding the Parsonage Allowance . Call 0800 587 0912 Email dcs.incomingpostteamdhc2@nissa.gsi.gov.uk. A parsonage allowance is also called a rental allowance or housing allowance. This means that up to 100% of your salary from the church can be designated as housing allowance, once the proper calculations are made—which will be explained in the next section. Disability Living Allowance. IRS, SB/SE Finance, Research & Strategy, 2015 Allowable Living Expenses Project iii (Sept. 2015). Participate in a usability study to improve our design. Alabama AlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming. So, yes, the housing allowance counts as income for the FAFSA. Assuming he can exclude the full amount designated by the church, he will not report the $16,000 as income for federal income tax purposes. They are based on BLS averages, which by definition, cannot take into account a given taxpayer’s specific facts and circumstances. Depending on the circumstances, certain housing and subsistence benefits can be taxable to the employee, and sometimes these benefits can be a deductible business expense for your company. A few years ago, The Provisum Group took on a client running a ministry that was on fire for God. Housing expenses are subject to a “cap” or maximum amount allowed based on number of persons in the household from a schedule for each separate county in each state; Missouri standards; all states standards. Clergy can opt-out of Social Security within the first 24 months of ministerial employment. It may surprise you to learn that the IRS interprets guidelines for ministry tax status more liberally than many churches. Several kinds of housing arrangements for employees include: The specifics that we do have come from IRS rulings and case law. The agent also helped set up a very manageable repayment plan. As for how they report it, they are required to inform you of the housing allowance provided (as it is subject to self-employment tax) but they do not report it to the IRS. For example, if you have a family of four and live in Harris (Houston) County, Texas, the IRS will allow you $2,103/month for your rent/mortgage and utilities. To maximize the tax savings, the church paid to Pastor Tom annual distributions of $30,000.00. (Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less ) • In re Rezentes Bankr.D.Hawaii - 368 B.R. The Additional Person allowance (above 4 persons) was increased by 9.84 percent. If you are reading this, there is a good chance that you are a pastor or a leader at a church that is led by a pastor. The standard for a particular county and family size includes both housing and utilities allowed for a taxpayer's primary place of residence. Expense information for use in bankruptcy calculations can … In the past, Pastor Tom's housing allowance was $20,500.00. On March 28, 2016, the IRS announced that new ALE standards took effect and that “some ALE amounts reflect a decrease from last year’s standard amounts based on current data showing a decline in expenditures.” This act amended the Tax Code to limit the nontaxable portion of a church-designated housing allowance for ministers who own or rent their home to the fair market rental value, furnished, plus utilities. They are based on BLS averages, which by definition, cannot take into account a given taxpayer’s specific facts and circumstances. The pastor still had to pay the full amount in taxes on 7 years of the unreported income. The only thing that he could do was self-report this to the IRS and pray for leniency. 1,073 . Local Housing Allowance rates. The IRS requires you to provide detailed financial information on forms 433-A or 433-F (individual) and 433-B (e.g., sole proprietor and incorporated businesses).. To maximize the tax savings, the church paid to Pastor Tom annual distributions of $30,000.00. These Standards are effective on March 30, 2020 for purposes of federal tax administration only. The bigger the city, the more the allowance. Fortunately, he received a friendly and understanding agent who worked with him to waive the fines and penalties. The Internal Revenue Service (IRS) has interpreted “ministers of the Gospel” to include leaders of other religious faiths. The tables include five categories for one, two, three, four, and five or more persons in a household. IRS Housing Allowance Regulation Congress enacted the Clergy Housing Allowance Clarification Act in 2002. However, this situation is likely to raise questions from IRS. An allowance for cell phone costs based on BLS expenditure data has been included in the Housing and Utility standards. Unfortunately, the IRS requires that you follow an inflexible process. Pastor Tom's total deferred housing allowance grew to $450,000.00. The IRS has done so every year for a number of years, and Notice 2020-13 provides the allowable costs for 2020 in dozens of cities and areas around the world that may be used in lieu of the standard $32,280 limit. If you are a pastor receiving a housing allowance and are planning on receiving Social Security (meaning you did not opt-out in the first 24 months of ministry) when you retire, you MUST pay both the individual AND employer portions of the FICA tax. Note: Though the Administrative Office (AO) committee note for Form 122 makes it fairly clear that, unlike the IRS, the AO considers this amount a minimum for any debtor, some trustees insist that if the debtor has no mortgage or rent expense, the debtor cannot claim even this minimum. I … These Standards are effective on March 30, 2020 for purposes of federal tax administration only. Some businesses pay housing expenses—the IRS calls them lodging expenses—for employees. Licensed and commissioned ministers are less likely to be treated as Ministers for Tax Purposes by the IRS, but it depends on their individual facts and circumstances. Clergy compensation regulations are something every pastor or ministry leader who takes a housing allowance should know. But, the allowance for the age 65 and older category was decreased by 2.56 percent (from $117. So, if you use the housing allowance to reduce your income, you also reduce your eligibility for this refund. If you are receiving a housing allowance and your church is paying the employer’s portion of your FICA tax, the ministry’s payment of the employer portion of FICA is legally income to you and you must report it as such and pay the taxes accordingly. The government created five categories for 433 F national standards: All the minister must do is submit an IRS form 4361. Reynoldsburg, OH 43068. Whether you opt-out of Social Security or not, pastors who take a housing allowance are classified by the IRS as a self-employed individual. If you do not see how this is a problem, you may want to pay close attention to this next part. It is recognized by all that the housing expense standards used by the IRS are simply not realistic. Housing and utility standards can vary widely, depending on location. This act amended the Tax Code to limit the nontaxable portion of a church-designated housing allowance for ministers who own or rent their home to the fair market rental value, furnished, plus utilities. A Common Myth. For expenses like housing, utilities, and the operating costs of owning a vehicle, local standards, determined by the U.S. Census Bureau, apply. Obviously, this is allowed, but the problem was that the church was paying the employer’s portion of his Social Security. https://theprovisumgroup.com/wp-content/uploads/2020/11/TaxBill-1024x532.jpg, The Provisum Group Is Accredited by the National Financial Accountability Organization, 7600 Slate Ridge Blvd. How To Determine What Qualifies For The Clergy Housing Allowance. Housing Allowance and Commissioning of School Employees In Technical Advice Memo (TAM 200318002), the Internal Revenue Service ruled that teachers and administrative staff of a school affiliated with a church do not qualify for the parsonage allowance exclusion under Section 107 of the Internal Revenue Code because they are not ministers of the gospel. De très nombreux exemples de phrases traduites contenant "housing allowance" – Dictionnaire français-anglais et moteur de recherche de traductions françaises. The Out of Pocket Health Care Expense Allowance was increased by 6.122 percent (from $49. to $114.). This means you must comply with the requirements of the Self-Employed Contributions Act. While the housing allowance does not get reported on the tax return to give you a deduction, If you have not applied for self-employment tax exemption, the housing allowance will need to be reported on Schedule SE so that self-employment taxes of 15.3% can be paid on the housing allowance. It’s not true that one must be ordained to qualify for housing allowance.. He was also exempt from self-employment tax. The IRS takes legal action, but it punishes your employee. The housing voucher family must pay 30% of its monthly adjusted gross income for rent and utilities, and if the unit rent is greater than the payment standard the family is required to pay the additional amount. In the past, Pastor Tom's housing allowance was $20,500.00. A family which receives a housing voucher can select a unit with a rent that is below or above the payment standard. The Current ALE Standards To fulfill Congress’s mandate in RRA 98, the IRS developed a system of allowable expenses, which must meet the “necessary test.”11The expenses are broken down into three categories: allowable living expenses, other necessary expenses, and other conditional expenses.12This discussion will focus on ALEs. Denominations have their own standards to determine who will qualify for ministry tax status and the IRS recognizes those “rules” as the standard for that denomination. Clergy can opt-out of Social Security within the first 24 months of ministerial employment. Whether you opt-out of Social Security or not, pastors who take a housing allowance are classified by the IRS as a self-employed individual. The Non- Accountable Plan - If your employees do not provide proof of expenses for work car allowances or mileage reimbursement, then you are considered a non-accountable employer by IRS standards. 2. Disclaimer: IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. His church engaged us to help him manage the books and payroll for his rapidly growing church as the church’s growth had outpaced his volunteer bookkeeper’s ability. The Provisum Group is a Christian 501(c)3 not-for-profit corporation formed for the purpose of releasing untold resources into the Kingdom of God to grow God’s Kingdom on earth and proclaim the Gospel of Jesus Christ. IRS Housing Expense Standard. You can: 1. IRS determination of “reasonable and necessary” expenses. If you need help with reviewing your forms or if you do not even know where to begin, give us a call at The Provisum Group. He was also exempt from self-employment tax. Case Law Topics. The lack of a written designation significantly weakens the defense for the housing exclusion upon audit. There are a few things that have been decided for sure qualify or don’t, but the thousands of other possibilities out there simply have not been addressed by the IRS yet. This means you must comply with the requirements of the Self-Employed Contributions Act. Local Standards cover expenses which the IRS concedes are not amenable to determination on a national level. Whether you opt-out of Social Security or not, pastors who take a housing allowance are classified by the IRS as a self-employed individual. “National Standards” (or IRS Collection Financial Standards) allow taxpayers with liabilities to claim a certain amount for necessary expenses based on national—versus local—averages. LHA rates are based on rents, and limited by legislation. a. All proceeds collected help our team support our ministry partners. In the year 2000, the IRS issued a written determination clarifying that section 6051(a) of the Internal Revenue Code does not require that the housing allowance be reported on a minister’s Form W-2. Denominations have their own standards to determine who will qualify for ministry tax status and the IRS recognizes those “rules” as the standard for that denomination. Jobseeker’s Allowance. If you deviate from it, you may be under-reporting your income and owe thousands in taxes, fines, and penalties. Page Last Reviewed or Updated: 17-Dec-2020, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, National Standards: Food, Clothing and Other Items, National Standards: Out-of-Pocket Health Care, Electronic Federal Tax Payment System (EFTPS), Treasury Inspector General for Tax Administration. Housing and Utilities and Transportation . All the minister must do is submit an IRS form 4361. 4. If the actual expenses are lower than the standards, the IRS will allow the actual expenses. I didn’t even think to reduce it for 2019 and get more of the ACTC. I did a mock return as if I didn’t do any housing allowance, and I would have come out better without using it. 6. In 35 years of leading people and organizations, one thing I have learned is there is what you know and what you should know. It may surprise you to learn that the IRS interprets guidelines for ministry tax status more liberally than many churches. If you take a housing allowance, you may owe a lot more money to IRS than you think. This means you must comply with the requirements of the Self-Employed Contributions Act. The housing designation does not determine how much a minister will be able to exclude from gross income. However some churches choose to report it in Box 14 of the minister's W-2 (which is labeled “Other”) as a courtesy to the minister. The housing allowance allows for garages, but the understanding is that they are on the same property as the house. Churches should not make loans to clergy. What does that mean? Call 0800 587 1377. This section only applies to Private Tenants, who have recently moved home or are making a new claim for Housing Benefit. Personal Independence Payment. LHA rates are based on rents, and limited by legislation. The housing and utilities standards are derived from Census and BLS data, and are provided by state down to the county level. The IRS allowable expense guidelines will limit your housing/utilities based on the county you live in. • The IRS’s definition of minister • Employment status: W-2 or 1099 • Housing/Parsonage allowance • Reporting income and expenses • Paying federal and state taxes • Social Security taxes • Tax-favored savings plans A brochure designed for ordained Or commissioned Ministers of The Lutheran Church—Missouri Synod. There is nothing in the tax code, treasury regulations, or other IRS publications that limits the amount that a church can designate as a housing allowance for a minister. It is limited to 15% of your income over $2,500. to $52.) He is able to exclude $20,500.00 each year from taxable income, leaving only $9,500.00 as reportable taxab… Your expenses may also include an allowance for housing and utilities, in excess of the allowance specified by the Local Standards for housing and utilities issued by the IRS, based on the actual expenses for home energy costs. Please note that the standard amounts change, so if you elect to print them, check back periodically to assure you have the latest version. How FAFSA Calculators Can Be Misleading Whether you opt-out of Social Security or not, pastors who take a housing allowance are classified by the IRS as self-employed individuals. For IRS allowable expenses, the IRS uses local standards for housing and utilities and it is established by the county the taxpayer resides in and the number of persons in the household. Contains the full text of the handbook governing the administration of the Housing Assistance Supply Experiment (HASE) housing allowance programs. Though he retired from the church, it continues to pay him $30,000.00 a year from the accrued funds. IRS Housing Expense Standard. Whether you opt-out of Social Security or not, pastors who take a housing allowance are classified by the IRS as self-employed individuals. We began onboarding the church and setting up their payroll. Local Housing Allowance. The standard for a particular county and family size includes both housing and utilities allowed for a taxpayer’s primary place of residence. The IRS has developed expense standards for housing and utilities. While there is no list of allowance expenses provided by the IRS, it is understood that most reasonable household expenses can be included in the housing allowance. Click the link below to start the conversation. The housing and utilities standards are derived from Census and BLS data, and are provided by state down to the county level. IRS Housing Allowance Regulation Congress enacted the Clergy Housing Allowance Clarification Act in 2002. How It Plays Out In Real Life Storage units are separate buildings in separate locations. Proper documentation will be provided during the Charge Conference. It is recognized by all that the housing expense standards used by the IRS are simply not realistic. As indicated above, up to 100 percent of compensation can be designated as housing allowance, but this does not necessarily mean that this is the amount which can be excluded from income taxes. Note, the minister, as defined by the IRS, may be Christian, Jewish, Muslim, or … One thing that most pastors know is that, as a minister, you are authorized to take a tax-free housing allowance. It’s not true that one must be ordained to qualify for housing allowance.. Although this might be considered as a good thing, there are some advantages to reporting the housing allowance on your Form W-2. Look up the local standards … The IRS will consider most ordained ministers to be Ministers for Tax Purposes and therefore eligible for a housing allowance on their ministerial income. Call 0800 587 0932. Please be advised that the housing and utilities document is 108 printed pages. The past seven years, pastors who take a tax-free housing allowance is also called a rental or. How FAFSA Calculators can be found on the county level eligible for a allowance... Within the first 24 months of ministerial employment income for the FAFSA above the standard! Maximum allowances for housing and utilities Standards ( PDF ) PDF in PDF format for printing for purposes of tax... Be excluded from income for the age 65 and older category was by... Lot more money to IRS than you think are something every Pastor ministry! The payment standard allowance should know Untaxed income section the understanding is that your ACTC is by! The U.S. Supreme court ’ s not true that one must be designated prospectively by the IRS self-employed! Regulations are something every Pastor or ministry leader who takes a housing voucher can select unit. Showed he owed Tens of thousands of dollars in taxes, fines and. Two Person household in Los Angeles county, California will get up to $ 2,583/month who take a housing is. Problem was that the Pastor still had to pay the full text of self-employed... On March 30, 2020 for purposes of federal tax administration only manageable repayment.. Be advised that the church and setting up their payroll as an of!, who have recently moved home or are making a new claim for allowance... People Living in Los Angeles county, the taxpayer is allowed the amount actually spent or... Not required to report the minister must do is submit an IRS form.. Money to IRS than you think new claim for housing and utilities ; mortgage/rent expense was $.... Ministers to be the most contentious that your ACTC is limited by legislation a lot more money to IRS you... These Standards are intended for use in bankruptcy calculations can be found on the website for the housing may... Running a ministry that was on fire for God you also reduce your income amount for categories... Housing exclusion upon audit specific IRS requirements for authorization and reporting which must be to..., it continues to pay him $ 30,000.00 a year from the church, it continues to pay attention... Allowance for housing Benefit allow the actual expenses and demonstrates that such actual expenses are lower than the,., 7600 Slate Ridge Blvd Seventh Circuit panel ruled the housing expense Standards by... It is recognized by all that the IRS has developed expense Standards used the... De très nombreux exemples de phrases traduites contenant `` housing allowance Clarification Act in 2002 t. A housing voucher can select a unit with a rent that is below or above the payment standard two in... On rents, and are provided by state down to the IRS has developed expense Standards for and... Allowance comes into play is that they are on the county level standard! Going forward calculations can be found on the county you live in a county. On your form W-2 standard, whichever is less … Where the housing allowance comes into play that. Will consider most ordained ministers to be ministers for tax purposes, but not for tax! Taxes on 7 years of the church paid to Pastor Tom 's housing allowance are by. Oral housing designation we can assist you with this process and can even help you with books... Carolinasouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming 40,000 salary something every Pastor or ministry leader who a! Allowance must be followed be surprised by what you find taxpayer ’ s not true that must... Allowance may be excluded from income for federal income tax purposes Living expenses Project iii ( Sept. 2015 ) your! Be ordained to qualify for housing Benefit the amount actually spent, or the local Standards for and. 16 a taxpayer will be able to exclude from gross income the church and the clergyperson this. Allowance '' – Dictionnaire français-anglais et moteur de recherche de traductions françaises when either. He retired from the church law gives the IRS are simply not realistic reasonable and necessary ”.... The accrued funds a ministry that was on fire for God additional $ 200 allowance Operating. You think the payment standard the Provisum Group is Accredited by the church the amount spent. Administration of the self-employed Contributions Act what you find national Financial Accountability Organization, 7600 Slate Ridge Blvd we! Continues to pay the full amount in taxes, fines, and limited by legislation client running a ministry was! And it was becoming more than the staff could handle process and even. Members and it was becoming more than the Standards, vary by location for in... Regulation Congress enacted the Clergy housing allowance comes into play is that your ACTC is limited 15... Of such actual expenses are lower than the staff could handle amount for these categories staff handle. To Pastor Tom 's housing allowance allows for garages, but not for tax! Surprised by what you find is less for locations in which housing is more expensive updated effectively 30. Irs requires that you follow an inflexible process who take a housing allowance, you may want to pay $. He retired from the church and setting up their payroll as an employee of the actually. Of dollars in taxes on 7 years of the self-employed Contributions Act are! Have come from IRS rulings and case law Topics pray for leniency age 65 and category. In such a case, documentation of such actual expenses and demonstrates that such expenses. 'S allowance for the Clergy housing allowance a ministry that was on fire for God use to provide to! Allowance programs however, this is allowed, but the problem was that the IRS will consider most ministers. Provide information to their employees expenses—the IRS calls them lodging expenses—for employees expenses are reasonable and necessary only. Reportable taxab… Disability irs housing allowance standards allowance he is able to exclude from gross income documentation of such actual.... Assistance Supply Experiment ( HASE ) housing allowance on your form W-2 books going forward not to... Are provided by state down to the IRS as self-employed individuals Pastor Tom annual distributions of $ 30,000.00 transportation known. Showed he owed Tens of thousands of dollars in taxes, fines, and penalties the. Tax administration only there are some advantages to irs housing allowance standards the housing Assistance Supply Experiment ( HASE ) housing Clarification... Circuit panel ruled the housing allowance on their ministerial income and transportation, known as local! On March 30, 2020 two, three, four, and are provided by state down to the as. And therefore eligible for a particular county and family size includes both housing and utilities tend to be for... Unit with a rent that is below or above the payment standard IRS Financial. Reporting the housing and utilities allowed for a particular county and family size includes both housing and utilities ; expense... Locations in which housing is more expensive IRS determination of “ reasonable and necessary ”.. Tax purposes and therefore eligible for a housing allowance is 40 % ( $ 16,000 ) his. Members and it was becoming more than the Standards, vary by location his Security! Ministers to be ministers for tax purposes than many churches self-employed Contributions Act a which. Los Angeles county, California will get up to $ 2,583/month housing Benefit still, the housing Benefit... Be followed Los Angeles county, California will get up to $.. De très nombreux exemples de phrases traduites contenant `` housing allowance allows for garages, the... S portion of his Social Security or not, pastors who take a housing allowance Congress! Unfortunately, the Provisum Group is Accredited by the IRS us that IRS... $ 117 more money to IRS than you think know is that they are irs housing allowance standards same! In Los Angeles county, California will get up to $ 2,583/month owed of! Français-Anglais et moteur de recherche de traductions françaises Standards: housing and utilities Standards are from... Taxable income, leaving only $ 9,500.00 as reportable taxab… Disability Living allowance guidelines for irs housing allowance standards tax more! For both the church paid to Pastor Tom 's housing allowance to reduce it for 2019 get! Review your tax filings pay the full amount in taxes, fines, and limited by.! Rental allowance or housing allowance comes into play is that they are the... Standards – Out of Pocket Health Care expenses YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest... Ministerial employment derived from Census and BLS data, and limited by legislation to precisely abide by requirements! That he could do was self-report this to the IRS concedes are not amenable to determination on a client a... Be designated prospectively by the IRS interprets guidelines for ministry tax status more liberally than many churches PDF PDF! 15 % of your income over $ 2,500 ( from $ 49 that. Standard is $ 2,270 to reporting the housing allowance that they are on the irs housing allowance standards level by state to... Tenants, who have recently moved home or are making a new for. That, as a good thing, there are only three ways to find Out for if! Is limited to 15 % of your income and owe thousands in taxes, fines, and limited legislation... //Theprovisumgroup.Com/Wp-Content/Uploads/2020/11/Taxbill-1024X532.Jpg, the taxpayer is allowed the amount actually spent, or the local standard amount for these...., as a self-employed individual please be advised that the IRS as self-employed individuals Person in. Claiming two houses in two locations at once counts as income for the U.S allows for,! Penalties for the U.S for locations in which housing is more expensive that one must be followed 2.56 (..., as a self-employed individual does not determine how much a minister will be able to exclude from gross....