The income tax exemption for parsonage allowances is currently in doubt. A federal court says the exclusion is unconstitutional because the exemption. For clergy housing allowances is akin to support religion by federal government, since only members of the clergy get the break (Freedom from Religion Fdn., D.C., Wise.). The government will appeal.
Thus, the exclusion is available on 2013 returns. The judge ruled that the exemption can remain in place while the case is appealed. One other tax break for members of the clergy is safe: The fair rental value of a residence furnished as part of their compensation package remains untaxable.