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January 11, 2020
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Clergy Housing Adjustment on Line 21

  • January 11, 2020
  • 2 replies
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I am clergy and I receive a W2 from the church. I have salary in box 1, federal withholding in box 2, and housing allowance in box 14. TurboTax is also telling me to use Line 21 as an adjustment to income to put my housing as a negative number as an adjustment to income. I haven't done this in filing before, so I am just asking why to make the adjustment? When I do, it certainly helps my refund. I want to make sure I'm doing it right. Thanks!

    Best answer by Critter

    If you read the instructions in the link I posted it says :  If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income  

     

    In your case it HAS been adjusted since it is NOT in box 1 ... you will NOT use the line 21 adjustment. 

     

    Follow this instead :  

    https://ttlc.intuit.com/questions/2303656-how-to-enter-clergy-housing-allowance

    2 replies

    Critter
    Employee
    January 11, 2020

    Was the housing included in box 1 of the W-2 ?   And the line 21 references are out of date since the form 1040 has been redesigned however the jist is the same. 

     

    https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-parsonage-or-housing-allowance-reported-on-a-w-2/00/26886

    kyork8Author
    January 11, 2020

    No, box 1 is salary only. Box 14 is housing as a separate amount. Thanks

    Critter
    CritterAnswer
    Employee
    January 11, 2020

    If you read the instructions in the link I posted it says :  If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income  

     

    In your case it HAS been adjusted since it is NOT in box 1 ... you will NOT use the line 21 adjustment. 

     

    Follow this instead :  

    https://ttlc.intuit.com/questions/2303656-how-to-enter-clergy-housing-allowance

    March 18, 2020

    As a retired minister I receive a Housing Allowance. I have not used it all and will have to show the remainder as Income, but where can I show this on Turbotax?

     

    AmyC
    Employee
    March 18, 2020

    Please see How do I enter a parsonage or housing allowance reported on a W-2?  If your housing allowance is in your box 1 wages, you do not need to make an adjustment.

     

    Related:

     Ministers' Compensation & Housing Allowance | Internal ...   

    @Herb94 

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