New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 35 - NEW JERSEY GROSS INCOME TAX
Subchapter 1 - GROSS INCOME-CATEGORIES AND CALCULATION
Section 18:35-1.4 - Clergy; self-employed

(a) Reporting. Duly ordained clergypersons are considered to be self-employed individuals for the purposes of the New Jersey Gross Income Tax Act. Accordingly, salaries, fees, honorariums, allowances, and other remuneration paid to clergypersons for services rendered are not subject to withholding. Clergypersons that report their income on the Federal Form 1040; Schedule C for Federal income tax purposes, shall report their income as net profits from business for New Jersey income tax purposes in accordance with 54A:5-1.b.

(b) Housing. A housing allowance received by a duly ordained clergyperson is not considered income to the extent that it is used in the year received to provide a home or to pay utilities for a home already provided. Therefore, income does not include the rental value of a residence provided for a clergyperson by his or her church or congregation. The clergyperson is required to report as income only that portion of his or her housing allowance that exceeds the actual expense of providing a home. The amount necessary to provide a home is to be determined in accordance with the criteria established by the Internal Revenue Service.