Clergy Residence Deduction (CRD)
All licensed Foursquare ministers who receive compensation from the church are eligible to apply
for a reduction of income tax at source on amounts paid by the church.
(Clergy Residence Deduction – commonly called housing allowance)
Sources of income that are not provided by the church are not applicable to this deduction.
Application for Clergy Residence
CRA requires that those who are claiming the deduction on salary amounts paid by the church are to apply for approval prior to the next payroll year by completing the T1213 form and providing proof of income and housing costs. This gives permission for the church to reduce the taxable income by the amount of clergy residence for income tax purposes.
If the approval letter is not received within a timely manner, the church should suspend the calculation of CRD until the letter is received from the employee.
1. Complete T1223 Form
2. Complete T1213 Form
3. Mail to CRA