[JBeaucaire]

My wife just started a preschool director's position at a church in Bakersfield, California. We also just purchased a home.

Our home expenses are $2500 per month all-inclusive.

The church indicated they would pay my wife her $38k salary with whatever amount we wished allocated to "housing allowance" that we want.

As I read online it appears we can rightly take any living expense amount, up to the full $2500 per month. Main reading is done here:

Commonly asked questions about Minister's Housing Allowance

However, the last thing I want is an Audit, so any feedback is appreciated here.

[AtlantaTaxExpert]

Claim the full $2,500 per month. I have done several minister's returns, and that amount is NOT out-of-line with housing allowances I have seen, espcially for a high cost-of-living state like California.

[JBeaucaire]

Any amount paid as housing allowance is not included in federal/state income. But regular income, the employee only pays half the SS tax, employer paying the other half.

Housing allowance is included in SS tax calcs, it is common to ask the church to pay half of the SS tax like they do for regular income, or no?