Yes. Even if the church only pays an evangelist on one occasion, this payment, or a portion thereof, may be designated as a housing allowance.

This designation must be made prior to payment for the designation to be effective. The taxable amount listed in box 7 of the Form 1099-MISC would be the total amount paid, less the amount designated as a housing allowance.

The amount paid as the housing allowance is not required to be reported on the Form 1099-MISC; however, we would recommend providing a separate letter to the recipient that identifies the amount of the housing allowance not included on the 1099.