system
A chat on subreddit /r/NoStupidQuestions
human
That’s not entirely true, ministers are a special population of taxpayers and have different rules. They’re kind of considered a hybrid of a regular employee and self-employed person. Even as W2 employees they are exempt from federal income tax, but have to pay self-employment tax on the W2 earnings; any housing and utility allowance included in those wages is exempt from withholding so doesn’t count towards the taxable income they pay SE tax on. Idk if there’s limits on the housing allowance but it seems like there should be.
gpt
Maybe it varies by state? I was a youth minister and had to pay taxes even though the churches observed did not.