Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Intuit
,Created with Sketch.113 helpful votes

How do I enter a parsonage or housing allowance reported on a W-2?

If you're using the TurboTax mobile app, follow these instructions.

If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and select the Take me to my return button.) Then search for W-2 and select the Jump to link in the search results. Follow the instructions to import or manually enter your W-2.

  1. When you get to Box 14, enter CLERGY HOUSING, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W2.) We’ll automatically classify the allowance as Other - not on the list above. Select Continue.
  2. If you get additional screens, answer those questions.
  3. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the box for Religious employment, then select Continue.
  4. On the following screen, choose You earned this income for clergy employment and select Continue.
  5. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
    • Your qualified housing expenses
    • The fair rental value of your housing expenses
    • Your housing or parsonage allowance
  6. Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

You will now be on the Here's your W-2 info screen. select Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

  1. Search for other reportable income and then select the Jump to link in the search results.
  2. Answer No to Did you receive any other wages? and Continue.
  3. Scroll to the bottom of the Let's Work on Any Miscellaneous Income screen and choose Start next to Other reportable income.
  4. Answer Yes, and on the 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).

If you're not already on the W-2 entry screen, search for W-2 and select the Jump to link in the search results. Follow the instructions to import or manually enter your W-2.

  1. When you get to Box 14, enter CLERGY HOUSING, followed by the amount, and then select Continue. (This amount might be reported to you in a letter from the church or in your employment contract if not on your W2.)
  2. We’ll automatically classify the allowance as Other. Click Continue.
  3. If you get additional screens, answer those questions.
  4. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the box for Religious employment, then select Continue.
  5. On the following screen, select You earned this income for clergy employment and select Continue.
  6. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
    • Your qualified housing expenses;
    • The fair rental value of your housing expenses; or
    • Your housing or parsonage allowance
  7. Click Continue, and on the Clergy Self-Employment Tax screen, select the appropriate option and click Continue again.
  8. If you get additional screens, answer those questions.

You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

  1. Search for other reportable income and then select the Jump to link in the search results.
  2. Answer No to Did you receive any other wages? and click Continue.
  3. Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and click Start next to Other reportable income.
  4. Answer Yes, and on the 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).

Was this helpful?

You must sign in to vote, reply, or post
Intuit TurboTax - Finish filing and get your maximum refund, guaranteed.

Ready to Try TurboTax?

Returning? Sign in