I have a related but slightly different question. However, I think the responses will be along the sames lines, so I believe responding here and getting updated input is the most helpful for others looking into this thread.
My husband is a hospital chaplain. He has a housing allowance within his W2 that shows up under line 14. Medicare has been withheld but Social Security has not been withheld on his W2.
1. How to I respond to the TurboTax question below?
Again, he HAS had Medicare withheld but NOT social security this past year.
2. How should he appropriately adjust his w2 for next year with the hospital given this confusion?
Thank you!
From TurboTax Questionnaire:
Question: How should we calculate these taxes?
Options:
- Pay self-employment tax on my wages
- Pay self-employment tax on my housing allowance
- Pay self-employment tax on my wages and housing allowance
- Social Security and Medicare taxes have already been withheld
- This income is exempt from self-employment tax because I have an approved Form 4361
