If you are paid through a W2, the housing allowance can be entered by using the steps below. Housing allowance should not be included in the box 1, gross wage amount.
- Sign into your TurboTax account (online or desktop version)
- Use the search box, upper right
- Search for clergy or W2
- Jump to clergy or W2 (both take you to the W2 entry)
- Complete the W2 entry
- Continue to the screen "Do any of these uncommon situations apply to this W2?"
- Select Religious Employment
- Follow the screens to complete the process for paying your social security and medicare taxes.
- See the images attached for assistance.
If you are using the self employment business section or you were paid on a Form 1099-MISC, you should be sure to use the appropriate business code to enter the housing allowance amount.
For the principal business code, use 813000 (religious organization). After you enter that business code you will get a screen about clergy income. Select "I Need to Pay Self-Employment Tax on This Income." The next screen will ask you to enter the amount of your housing allowance.
You can go directly to the area to begin to enter your income and expense for your pastoral self employment.
- Select the Federal taxes tab (Business tab in Self Employed Online or TurboTax Home & Biz Desktop)
- Select Wages & Income (Business Income and Expense)
- Scroll to Business Income
- Start or Update
- Use the information above to complete your return. (see images attached).