How do I determine a housing allowance?

A Clergy housing allowance is generally reported in Box 14 of Form W-2 and it is not included in Box 1,3 or 5. It is usually labeled "Housing Allowance" or "Parsonage". This amount is excluded from federal income tax (Box 1) but it is  included in net earnings for self-employment tax.

When you are prompted to "Tell Us About your Clergy Housing," you will enter the qualifying expenses. This is the lesser of your actual expenses, fair rental value, or your designated allowance

If your housing allowance is not reported in Box 14 there is may be 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)

Click here for "How do I enter a parsonage or housing allowance on a 1099-R?"

Click here for additional information on taxes and Ministers