Is there a limit to how much housing allowance one can receive vs. salary?

Question

I have a cash salary after pretax deductions of $32,000. My housing allowance is $26,000. Is that allowable or is there a limit compared to percentage of salary?

Answer 1

No. And unless you are a member of the clergy, military, or are a US citizen, national or resident alien living outside the US (under certain circumstances), or serving in the Peace Corps, it is fully taxable as ordinary income as well.