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April 15, 2023
Question

Turbotax did not add my clergy income to the SE form. I have already filled. What gives?

  • April 15, 2023
  • 1 reply
  • 0 views

I trusted TT to do my clergy taxes correctly. Now I find out that the last 3 yrs(including this years) are incorrect. Now what do I do. I am so upset.

    1 reply

    Employee
    April 15, 2023

    You are responsible for double checking your own tax return.

     

    When entering a W-2 for clergy wages, there is a page listing special circumstances, and you must check the box for religious wages.  You will then be presented with a screen asking you to enter your housing allowance or value of your parsonage, and you will be asked if you want to pay SE tax on your wages only, housing allowance only, both  or neither.  Both is almost always the correct answer.  Wages only and housing only should only be used if you have a non-standard W-2 from your church, and "neither" is only used if you have an approved religious exemption to SE tax under form 4361.

     

    Did you check the box for religious wages when preparing your prior tax returns?  How did you answer the question about SE taxes?

     

    In general, the way to fix the problem is to file amended returns and pay the back taxes you will owe when your taxes are recalculated.  In most cases, you will only need to amend your federal return, your state returns should not have been affected.

     

    https://turbotax.intuit.com/tax-tips/amend-return/how-to-file-an-amended-return-with-the-irs/L6kO691J8

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-current-year/L7eS6o1qh_US_en_US

     

    Pastor CAuthor
    April 15, 2023

    " You will then be presented with a screen asking you to enter your housing allowance or value of your parsonage, and you will be asked if you want to pay SE tax on your wages only, housing allowance only, both  or neither.  Both is almost always the correct answer.  Wages only and housing only should only be used if you have a non-standard W-2 from your church, and "neither" is only used if you have an approved religious exemption to SE tax under form 4361."

     

    I have never seen this screen. I have my profession as clergy and the SE figured out only on my wages after housing allowance.

     

    I see that people complained about this as a glitch in the past. How would I know it wasn't correct if TT didn't ask the question in the first place?  The error is NOT on my part!!!!