Clergy Housing Allowance

[Dixon2045]

I submitted our 2024 return this week. My husband is a pastor for a small rural church. This is a side job for him. He is exempt from Social Security on his religious income (IRS form approved) because he pays Social Security on his secular income. We received a W2 for his housing allowance (which is all they give him). When I entered it in our return it dropped our refund by over $1600.00! I know we aren't supposed to pay taxes on housing allowance. Did I do something wrong? If so, how do I fix it?

[LindaS5247]

Usually the housing allowance for clergy is reported in Box 14 "Other" of Form W-2, and is not included in Box 1, 3 or 5. 

If your housing allowance is not reported in Box 14 there is probably an error on your Form W-2 and you should contact the person that issued your Form W-2 to correct it.

You would indicate your housing allowance as follows:

1. When you enter your W-2 into TurboTax , you would indicate in the description box for 14 "Clergy Housing Allowance". ‌      (See screenshots below for additional guidance)
2. Then you will go through the next screens.
3. On the screen that says "Lets check for uncommon situations" you can select "Religious employment" and then select "Continue"
4. On the screen that says "Let's dig into your religious employment" select "Clergy" and then "Continue"
5. On the screen that says "OK Tell us about your clergy housing" enter the amount of your housing allowance.

To  be eligible, the pastor/clergy must be a “minister of the gospel” and be ordained, licensed, or commissioned by a church, convention or association of churches.

If you need to go back and edit your W-2 entries, you can do as follows:

If you are using TurboTax Online/Mobile: you can use this link W-2, or you can:

1. Open your return.
2. Go to "wages and income"
3. Under W-2's select "Add/Edit" next to your W-2 that you need to edit.  (See the screenshots below for additional guidance)

If you are using TurboTax Desktop:

1. Open your return
2. In the Search bar, enter "W-2" and select the "Jump to" link. This will take you to your W-2 entries 
3. Select the (down) caret next to your W-2 and then select "Edit"    (See screenshot below for additional guidance)

The screens that appear after you enter your W-2 will look something like this::

Click here for additional information on taxes and Ministers.