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February 28, 2025
Question

I was paid via housing allowance by my church in box 14 of my W2. Box 1 was left blank. As a result, TT is saying they can only submit by snail mail. Anyway around it?

  • February 28, 2025
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    DawnC
    Employee
    February 28, 2025

    Enter zero in Box 1 and mark the religious employment box on the other situations screen after you enter your w-2.

     

    Is my clergy income subject to self-employment taxes?

     

    Is a parsonage or housing allowance deductible?

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    February 28, 2025

    I did that. And it’s giving me this screen: 

     



    DaveF1006
    March 1, 2025

    No. Do not report the W2 you received. This is informational only.  This is a housing allowance that you need to pay self-employment tax on. This is not reported as taxable income but you do need to pay Self-Employment tax on it.  Here is how to report.

     

    In the income section go to;

     

    1. Open or continue your return.
    2. Navigate to the self-employed income section:
      • TurboTax Online/Mobile: Go to self-employed income.
      • TurboTax Desktop: Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link.
    3. Answer Yes on the Did you have any self-employment income or expenses? screen.
      • If you land on the Your 2024 self-employed work summary page, select Review next to the work you're adding income for.
    4. Answer the questions on the following screens until you arrive at Let's enter the income for your work.
    5. Select the form that applies to your situation and select Continue.
    6. Continue down until you report your housing allowance as income.

    Once this has been reported, your SE tax has been reported in your return.  Now you will want to exclude that income do it won't be taxable to you. You will do this by:

     

    1. Log into your account
    2. Select Wages and income
    3. Less Common income
    4. Miscellaneous Income, 1099-A, 1099>start
    5. Scroll to the bottom of the page to Other Reportable Income
    6. Other taxable income, answer yes
    7. Then give a brief description of the income and the amount listed.  Here call this Excluded Pastor's Housing Allowance and then report the income as a negative number to offset the amount reported in the first set of steps. Here you will enter -XXXX.XX.

    @patrickbossio 

     

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