1. Many ministers who participate in retirement plans have also reduced their federal income tax by taking advantage of the retirement savings contributions credit. For 2020, the credit is equal to 50% of Traditional IRA, Roth IRA, and 403(b) plan "elective deferral" contributions for married filling joint taxpayers with Adjusted Gross Income less than $39,000. Reduced credits are available for those with AGI greater than $39,000 but less than $65,000 (IRS Form 8880). With housing allowances reducing their AGI to these levels, many ministers are eligible.
2. Retired ministers who receive 403(b) distributions from their "church plans" may enjoy housing allowance exclusions if their churches designate them as such (Minister's Audit Techniques Guide). Caution: ministers are well advised to receive assistance from a tax professionals who understand the proper filing of these ministers' returns.