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February 2, 2025
Question

SE Taxes

  • February 2, 2025
  • 1 reply
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To clarify- if box 2, 4, and 6 have amounts in them (taxes withheld), do I still choose #4- pay SE tax on wages and housing allowance. Or do I just pay SE tax on housing allowance since taxes have been withheld for wages? Thank you for the clarification.

    1 reply

    February 2, 2025

    It depends- Your parsonage is exempt from income tax but not FICA.  If the amount in Box 1 is less than the Box 3 or 5 amount (by the amount of the housing allowance), the FICA has already been taken out.  If the amount in Box 1-3-5 is the same, you will want to pay the self-employment tax on the housing only.