Get your taxes done using TurboTax

Turbotax is not designed to handle this situation.  There are basically 2 ways to use the program to make it work, or you will need to see a tax professional this year (who understands clergy, not all do.)  Also, check with your denomination. They may have recommendations for tax providers and may offer training or guidance for your Treasurer and bookkeeping staff.  This is also a good personal resource. http://www.ecfa.org/PDF/2017-Ministers'-Taxes-Made-Easy.pdf


Using Turbotax installed on your own computer, you can fix this problem if you are willing to make a manual override to one of the forms.  Overrides void the accuracy guarantee and prevent e-filing, you will need to print and mail your return.  What you would do is enter the W-2, check the box for "religious wages", and then then check the box for "pay SE tax on housing allowance only."  Then click the Forms icon at the top of the page to switch to Forms mode, and look for "Sch SE Adj Wks" (Schedule SE adjustment worksheet).  I believe that line 5a is clergy wages subject to SE tax and line 5b is your housing allowance.  You will manually enter on line 5a, the amount of your wages that was not subject to FICA tax (it looks to be $14,533 from your numbers).  Line 5a may accept the manual entry without an override, but it will probably require an override -- you won't be able to directly enter numbers unless you click on the field and then select "override" from the Forms menu.

This will get you the correct result, but will prevent e-filing.

The other possible solution is to split the W-2 into 2 separate W-2s; one for the time you had FICA withheld and one for the time you were not.  Enter your wages as if you had two separate W-2s.  Don't check the religious wages box for the W-2 with FICA.  For the W-2 without FICA, check the box for religious wages, check the box for "pay SE tax on both housing and wages" and enter the full amount of your housing allowance.

The concern here is that Turbotax may show an error if you have 2 W-2s from the same employer.  And, entering 2 W-2s, neither of which matches your actual W-2, may lead to you getting a mismatch letter from the IRS or your state asking you to explain.

Personally I would do the override method.  If you're not comfortable with either method you will need to see a professional this season.