Canada Revenue Agency changes requirements for clergy housing allowance

Clergy who own or rent their accommodation must file form T1213 with Canada Revenue Agency (CRA), and receive written approval from CRA, before being allowed a reduction of income tax at source. This is a change in procedure.

Previously, CRA ruled that the form was no longer required for any eligible employee who informed their employer, via the annual CRA form T1223 Clergy Residence Deduction, they would be claiming a housing allowance. Now CRA must receive the form and approve the deduction.

However, when housing is provided by the employer (e.g. a parsonage), the T1213 filing is not required because the provided-housing taxable benefit will generally equal the Clergy Residence Deduction amount.

LCC treasurer, Dwayne Cleave, suggests clergy file a T1213 form by October or early November of a current year to give CRA sufficient time to issue an approval for the following year. The form is available by clicking here.

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