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Self Employed Clergy, housing allowance and PPP Loans

By trying to fix one problem in the software I ran into another.  My wife, as Clergy, is considered self-employed.  This creates a bee's nest of confusion in the TT software, but I have been able to mostly address the issues to this point.  However, this year I ran into a new problem trying to fix the first issue we always encounter (with her Housing allowance).  

 

I sought to make a correction to account for the housing allowance and in the 'Other Reportable Income' link that I clicked it led me through a number of potential income sources.  One of those sources was asking about PPP Loan forgiveness from 2020 or 2021.  Our family received the federal stimulus that took place during those years, but my wife did not receive a PPP Loan.  I can't click past it to get to the screen I need, and so I'm presently stuck. 

 

Does TT assume my wife got a PPP Loan because of her self-employment status, or were the public stimulus payments that were made then loans that need some sort of forgiveness?  If the monies we received back then were considered loans, and indeed need forgiveness, I have never seen any indication of this before now. However, if this is truly specific to PPP Loans, not having an option to indicate that none were received, is quite frustrating. 

 

The screenshot below shows where I'm stuck. 

 

Screenshot 2026-02-08 201030.png

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1 Best answer

Accepted Solutions
AnnetteB6
Employee Tax Expert

Self Employed Clergy, housing allowance and PPP Loans

The screen that you get stuck on regarding the PPP loans is just a result of following the steps outlined in the help article to adjust for the housing allowance.  The 'jump to' link is not going to the same place as in the past and you are going through a different/incorrect section of the program.  It has been reported that the help article should be corrected.

 

Try using the following steps to make the housing allowance adjustment:

 

  1. In the Income section of your return, scroll to Less Common Income.
  2. Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C.
  3. Scroll to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other reportable income.
  4. Answer Yes, and on the Any 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).

This will report the housing allowance as a negative adjustment on Form 1040 Schedule 1 line 8z.


 

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1 Reply
AnnetteB6
Employee Tax Expert

Self Employed Clergy, housing allowance and PPP Loans

The screen that you get stuck on regarding the PPP loans is just a result of following the steps outlined in the help article to adjust for the housing allowance.  The 'jump to' link is not going to the same place as in the past and you are going through a different/incorrect section of the program.  It has been reported that the help article should be corrected.

 

Try using the following steps to make the housing allowance adjustment:

 

  1. In the Income section of your return, scroll to Less Common Income.
  2. Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C.
  3. Scroll to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other reportable income.
  4. Answer Yes, and on the Any 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).

This will report the housing allowance as a negative adjustment on Form 1040 Schedule 1 line 8z.


 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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