Alright kiddo, so you know how some people work really hard to help others and they're called clergy? They work at churches, temples, mosques, or other religious places. Now, just like you and me, they need a place to live in. Sometimes, their employers (the churches or other religious places they work at) help them pay for their rent, mortgage, or other housing expenses. This is called a housing allowance.
But here's the cool part, because these clergy people are doing such important work, the government gives them a special break on their taxes. This break is called a clergy housing allowance, and it means that they can exclude part of their housing allowance from their taxable income. That means they get to keep more of their hard-earned money, which is pretty awesome, right?
However, there are some rules that they have to follow to get this housing allowance. For example, they have to use their allowance to pay for actual housing expenses and they can't use it for other things like groceries or clothes. Also, they have to be ordained, licensed or commissioned by a religious organization to qualify.
So, that's the gist of clergy housing allowance. It's a special tax break that helps clergy people who work hard to make the world a better place, afford their housing expenses.