The most important thing to bring to your CPA meeting is your housing allowance designation from your church board minutes. The most important question to ask is whether your designation matches your actual housing costs. The most common mistake bi-vocational pastors make is not knowing that housing allowance is excluded from income tax but IS subject to self-employment tax. Download the complete 2025 checklist below.
Download the Complete 2025 Checklist
Printable PDF , document checklist, 12 questions, red flags table, and annual timeline.
Section 1: Documents to Bring
Show up to your CPA meeting with these documents organized and ready. A CPA who has to wait for you to gather records is billing you for that time.
From Your Church
- ☐ W-2 or 1099-NEC , Box 1 wages, Box 12 codes
- ☐ Housing Allowance Designation , official board resolution showing amount designated for current year
- ☐ Parsonage Documentation (if applicable) , fair rental value statement, utility bills paid by church
- ☐ Reimbursement Records , accountable plan receipts: mileage, books, conferences, supplies
- ☐ Health Insurance , premiums paid by church, or your out-of-pocket if church does not provide
- ☐ Retirement Contributions , 403(b)(9), Roth IRA, SEP-IRA statements showing church match
- ☐ Social Security Offset Letter , does church pay your 7.65%? Get it in writing.
From Your Secular Job
- ☐ W-2 from employer
- ☐ 401(k)/403(b) Statements , contributions, match, vesting
- ☐ HSA/FSA Records , contributions, distributions
- ☐ Side Income 1099s , any freelance or gig work
Personal Records
- ☐ Mortgage or Rent Records , interest, property tax, or monthly rent amount
- ☐ Utility Bills , electric, gas, water, trash, internet (for housing allowance calculation)
- ☐ Vehicle Mileage Log , total miles, church miles, secular job miles, personal miles
- ☐ Home Office Documentation , square footage, repairs, insurance
- ☐ Charitable Giving Receipts , for donations over $250
- ☐ Education Expenses , seminary, conferences, books, software
- ☐ Prior Year Return , federal and state (CPA needs this for carryforwards)
Section 2: The 12 Questions to Ask (In Order of Priority)
The checklist covers 12 questions in priority order. Here are the first three to give you a sense of what is covered. The full set of 12, with follow-up questions and specific guidance for each, is in the downloadable PDF.
1. Housing Allowance
“Based on my actual housing costs, what is the maximum housing allowance I can exclude from federal income tax? Am I leaving money on the table?”
The designation must be in board minutes BEFORE the year begins. If your designation exceeds your actual costs, the excess is taxable. See the complete housing allowance guide for more detail.
2. Self-Employment Tax
“Am I paying SE tax on my housing allowance? On parsonage fair rental value?”
Housing allowance is excluded from income tax but IS subject to self-employment tax (15.3% on Schedule SE). This surprises many bi-vocational pastors. Parsonage fair rental value is also subject to SE tax.
3. Accountable Plan Reimbursements
“Does my church have a written accountable plan? If not, can we set one up?”
Without a written accountable plan, reimbursements become taxable income. Under TCJA, unreimbursed employee expenses are not deductible for federal income tax. The fix is to get the church to adopt a written accountable plan.
Questions 4 through 12: In the Full Checklist
The remaining nine questions cover the areas where bi-vocational pastors most commonly leave money on the table or face unexpected tax bills:
| # | Topic | What the checklist covers |
|---|---|---|
| 4 | Retirement | 403(b)(9) vs. Roth IRA vs. SEP-IRA and how the combined contribution limit works across church and secular plans |
| 5 | Health Insurance | SEHI deduction, QSEHRA/ICHRA from church, and HSA eligibility |
| 6 | State Tax | How your state treats housing allowance, estimated state payments, and reciprocity if you work across state lines |
| 7 | Estimated Payments | Safe harbor rules, quarterly due dates, and whether to increase secular withholding instead |
| 8 | Social Security Offset | When the church pays your 7.65% and how it should appear on your W-2 |
| 9 | Continuing Education | Seminary, conferences, books, software and whether the Lifetime Learning Credit beats a deduction |
| 10 | Vehicle | Standard mileage vs. actual expenses and how to allocate miles between church, secular job, and personal use |
| 11 | Audit Readiness | The top three things IRS looks for in clergy returns and the documentation you need ready today |
| 12 | Year-End Planning | What to do before December 31 and the December board meeting deadline for next year’s housing allowance |
Get All 12 Questions
The full checklist includes every question with follow-up questions, the red flags table, annual timeline, and a CPA cheat sheet.
Section 3: Red Flags to Watch For
Section 4: Annual Timeline
The housing allowance designation for next year must be in the board minutes BEFORE January 1. If your church does not designate it before the year begins, the entire allowance is taxable for that year. Put it on the December agenda every year without exception.
Key IRS Publications for Bi-Vocational Pastors
- IRS Publication 517 , Social Security for Members of Clergy (free at IRS.gov)
- IRS Publication 525 , Taxable and Nontaxable Income (housing allowance section)
- IRS Publication 463 , Travel, Gift, and Car Expenses (accountable plans)
- IRS Publication 560 , Retirement Plans for Small Business
- GuideStone Tax Guide for Ministers , updated annually, also highly recommended
For more on the financial side of bi-vocational ministry, see the Bi-Vocational Pastor Financial Survival Guide and the complete housing allowance guide. The full bi-vocational ministry resource hub has everything else you need.
The printable PDF includes all 12 questions, the complete document checklist, red flags table, annual timeline, and a cheat sheet to hand your CPA at the meeting. Get it for $2.99 at ministryplace.net.
This resource is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax attorney for advice specific to your situation.