Sunday, November 24, 2013

11-25-13 clergy-tax free housing

MADISON, Wis. (AP) — A federal judge has struck down a law that gives clergy tax-free housing allowances.  The decision could have far-reaching financial ramifications for pastors, who currently don't pay income taxes on compensation that is designated part of a housing allowance.  In her Friday decision, U.S. District Judge Barbara Crabb wrote the exemption: "provides a benefit to religious persons and no one else, even though doing so is not necessary to alleviate a special burden on religious exercise."  The Madison-based Freedom From Religion Foundation filed the lawsuit against U.S. Treasury Secretary Jacob Lew and acting IRS commissioner Daniel Werfel. 

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