If the value of the parsonage (or a cash housing allowance) was included in your W-2 box 1 taxable income, then your church issued an incorrect W-2. They have to correct the W-2, there is no procedure on your tax return to remove the value of your housing.
Some churches may put the value of your housing allowance or parsonage inbox 14. Box 14 is a memo field that does not directly increase or decrease your taxable income. You must manually tell TurboTax that you have a housing allowance so that it is added to your self-employment income.
