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June 5, 2019
Question

Which version of TurboTax is best for reporting clergy income and housing from a W-2? Would I need to choose the Self-Employed edition due to self-employment tax?

  • June 5, 2019
  • 3 replies
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3 replies

Employee
June 5, 2019

 Although clergy are considered self-employed for certain limited tax purposes, they are generally common law employees and will receive a W-2. You can use the deluxe version of TurboTax as long as you don't have additional side income. 

Your W-2 should have wages in box 1 and boxes 2 through 6 should be blank. If not, TurboTax will not understand how to process your return and you may need professional help. After entering the W-2, there is a page of special circumstances and you check the box for religious wages. You will then  be asked about your housing allowance. 

If you also have a side income that is not recorded on the W-2, then you may need the self-employed version in order to prepare a schedule C to include that side income.    But if you just have a W-2, Deluxe will be fine. 

 One additional note: if you want to deduct work related expenses, you have to make adjustments due to the Deason rule. These adjustments can't be made using the online version of TurboTax, you need to use the desktop version so that you can directly edit and make manual corrections on some of the forms. 

tomis850Author
June 5, 2019
That is very helpful... Would there be any way to report other allowances such as automobile using the online version of TurboTax?
December 12, 2019

I'm inquiring as to which TurboTax version is best for a minister with a housing allowance?  In addition, I worked some other part-time W-2 jobs during the year.  Thank you!

December 12, 2019

Hello, I appreciate your answer oh, but I am wondering which version is best to use for a minister with a housing allowance and also if you have worked additional W2 part-time positions. Thank you