By Earl Reaburn, Personnel Minister
This is a reminder to all Pastoral Charge Treasurers and Ministry and Personnel Committees to ensure that a T 1223 – Clergy Residence Deduction T1223-15e – Clergy Residence Deduction is provided to all Ordered and Designated Lay Ministers who served the Pastoral Charge in 2017.
This form is provided whether the ministry personnel are receiving compensation according to the (old) Salary and Housing Allowance model, or the (new) Comprehensive Salary model. It is not dependant on a housing allowance being provided.
The treasurer is responsible for completing Part B on the first page, and signing the Employer Certification at the top of the second page.
According to United Church polity, for ministry personnel (Ordained, Diaconal or Designated Lay Ministers) serving Pastoral Charges (most ministry personnel) under Presbytery appointment or settlement (Call):
– the answer to question 1 in Part B is “a) Member of the Clergy”. Ministry Personnel ought to be able to provide their own copy of their Ordination, Commissioning or Recognition certificate if asked.
– Question 2 does not require a response from United Church ministry personnel.
– the answer to question 3 in Part B is “a) in charge of a diocese, parish or congregation” for those in solo ministry. “b) ministering to a diocese, parish or congregation” might be applicable to a minister in a team ministry who does program or pastoral care ministry and does not have lead responsibilities for administration. The response to this question does not affect the minister’s eligibility for the Clergy Residence Deduction.
– Pastoral Charges need to be able to provide a position description to meet the requirement of question 4. The same position description can be used from year to year if it does not change substantially.
– the answer to question 5 in Part B is “No” if the minister does not live in a manse and “Yes” f they do live in a manse. The response to this question does not affect the minister’s eligibility for the Clergy Residence Deduction.
Ministry Personnel need to use form T 1223 to calculate the amount they will enter on Line 231 on their 2016 Income Tax Return. They do not need to submit T 1223 when they file their income tax, but they need to be able to produce it if audited by the Canada Revenue Agency.
Please note: this form is different from T 1213 Request to Reduce Tax Deduction at Source, which some ministry personnel choose to submit in the fall.
Further information can be found at http://www.united-church.ca/leadership/church-administration/clergy-residence-deduction#t1223 , or by contacting me in the Conference Office.