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April 16, 2023
Question

My W2 contains amount labelled "parsonage" in box 14. How do I enter this amount on my Schedule SE?

  • April 16, 2023
  • 1 reply
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I already checked the box in the section labelled "Job" that I want to pay SE tax on my housing allowance, and I would think that Trubotax would automatically prompt me to enter this in the section labelled "Self-employment income and expenses", but that section does even have a category that fits the description for clergy housing allowance!

1 reply

April 17, 2023

To enter your "Parsonage allowance," here are the steps:

 

  1. Open TurboTax
  2. Federal > Wages & Income > Job (W-2) > Edit/Add.
  3. Delete the W-2 on the screen, "Your W-2 info so far."
  4. Add a new W-2.
  5. Enter the W-2 > Continue until you see the screen below. Select "Religious employment."

 

        6.  Continue > Select the correct option > Continue.

 

 

 

         7.  On the screen below enter the parsonage or housing allowance. Continue.

 

 

 

 

    8.  On the screen below select how the taxes should be calculated.

 

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hamich1Author
April 18, 2023

Thank you.  That's what I did: I clicked the box for "clergy", entered the amounts, and then clicked "Pay self-employment tax on my housing allowance", but my housing allowance still did not show up on my Schedule SE!  What am I missing?

April 18, 2023

Here are some additional steps from a TurboTax Help article:

 

When you see the Your W-2 info so far screen, select Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

  1. Search for other reportable income and select the Jump to link in the search results
  2. Answer No to Did you receive any other wages? and select Continue
  3. Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income
  4. Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, for example -10,000)

@hamich1 

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