What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Housing allowance checked against your actual housing costs
- Self-employment tax figured correctly for ministers
- Honoraria and guest-speaking income included and their costs deducted
- Quarterly estimates set so April isn't a shock
Deductions pastors often miss
- Housing costs that support your allowance: rent or mortgage, utilities, furniture, repairs and insurance
- Costs of guest preaching, weddings and funerals paid to you directly
- Books, conferences and continuing education tied to your ministry
- Mileage for ministry you weren't reimbursed for, when it counts for self-employment tax
- Retirement contributions through your church's 403(b) plan
Houston and Texas rules that apply to you
- Church payroll: for income tax you're usually the church's employee and get a W-2, but for Social Security and Medicare you're treated as self-employed. Many Houston churches don't withhold any tax, so quarterly estimates (or voluntary withholding) matter.
- Non-minister staff: worship leaders, admins and youth workers who aren't ordained, licensed or commissioned are regular employees with normal payroll taxes.
- No Texas income tax: your return is federal only, but self-employment tax (15.3% for Social Security and Medicare) applies once your net self-employment income reaches $400.
New for 2026 returns (filed in 2027)
- Form 4361: ordained ministers opposed on religious grounds to public insurance can apply to be exempt from self-employment tax, but only by the due date of the return for the second year with $400 or more of ministry earnings. Miss that window and it's closed for good.
- 1099 forms: clients and companies now send a 1099-NEC only when they pay you $2,000 or more in 2026 (it was $600). Payment apps send a 1099-K only above $20,000 and 200 payments. All of your income is still taxable, form or no form.
What to bring
- W-2 from your church, and the board resolution setting your housing allowance
- Your actual housing costs for the year
- Records of honoraria, love offerings and guest-speaking pay
- Mileage and ministry expenses your church didn't reimburse
- Any estimated tax payments you made
Common questions
Is my housing allowance tax-free?
It's free of federal income tax up to the smallest of the amount the church designated, your actual housing costs, and the fair rental value of your home with utilities. It still counts for self-employment tax.
My church pays me with no taxes taken out. What should I do?
Plan for self-employment tax plus income tax. You can make quarterly estimated payments or ask the church to withhold extra income tax voluntarily to cover both. I'll set the amount with you.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: IRS Publication 517 (clergy) ↗ · IRS Form 4361 ↗ · IRS: Self-Employed Tax Center ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
Other trades I help: