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June 5, 2019
Question

Can I list a clergy housing credit when filing with Turbo Tax, if so in what section?

  • June 5, 2019
  • 2 replies
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2 replies

Employee
June 5, 2019
What do you mean by a clergy housing credit?
June 5, 2019

The clergy housing allowance is entered as follows depending on whether you are entering the W2, as common law employee of the church or the self employment section.

If you are entering a W2, the housing allowance can be entered by using the steps below.  Housing allowance should not be included in the box 1, gross wage amount.

  1. Sign into your TurboTax account (online or desktop version)
  2. Use the search box, upper right
  3. Search for clergy or W2
  4. Jump to clergy or W2 (both take you to the W2 entry)
  5. Complete the W2 entry
  6. Continue to the screen "Do any of these uncommon situations apply to this W2?"
  7. Select Religious Employment
  8. Follow the screens to complete the process for paying your social security and medicare taxes.
  9. Click the images attached to enlarge and view for assistance.

If you are using the self employment business section or you were paid on a Form 1099-MISC, you should be sure to use the appropriate business code to enter the housing allowance amount.  

For the principal business code, use 813000 (religious organization). After you enter that business code you will get a screen about clergy income. Select "I Need to Pay Self-Employment Tax on This Income." The next screen will ask you to enter the amount of your housing allowance. 

You can go directly to the area to begin to enter your income and expense for your pastoral self employment.

  1. Select the Federal taxes tab (Wages & Income tab in Self Employed Online or Business tab TurboTax Home & Biz Desktop)
  2. Select Wages & Income (Business Income and Expense)
  3. Scroll to Self Employment Income & Expenses (Business Income  in TurboTax desktop)
  4. Start or Edit > General Info > Edit Tax Details
  5. Use the information above to complete your return. (click images attached).
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