meg-plume
New Member

When i review my taxes and look at the se form the flow chart says i need to use the long form, but y'all are using the short form- why?

 

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short form for what?  1040 or sch C or sch SE?  Have you entered all your schedule C expenses?
meg-plume
New Member

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Schedule se
meg-plume
New Member

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I am clergy and have wages over 108.28 as a church employee which makes me have to use the long schedule se, but turbo is trying to file me as a short schedule se.

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How much is your w2 wages?  Only $108 dollars?
meg-plume
New Member

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No 35k. I'm referring to the schedule se flowsheet which states an w2 income over 108.28 received as a church employee must use long schedule se
KarenW
Intuit Alumni

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Hi, after you entered your W2 for this clergy work, did you check the box 'Religious Employment' on the screen Do you have any of these uncommon situation that apply to this W2? And answered the questions for clergy that follow?

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"Church employee with wages over $108" would apply to non-clergy employees whose church does not withhold social security tax (teachers, custodian, secretary etc for some denominations that have a religious exemption to withholding.

That characterization does not apply to you.  "Clergy" is a separate characterization, and you may only need the short form.  

If you are a W-2 employee, enter your housing allowance or value of the parsonage after checking the box for "religious employment" on the page for special circumstances.  If you are self-employed only, use labor code 813000 and enter the value of your housing allowance or parsonage when asked.

Be aware there is a bug in the calculation of SE tax for some clergy using a W-2.  The choice to pay SE tax on wages + housing does not stick and the program reverts to wages only, causing an under-calculation of the tax.  Some people have reported fixing the bug by deleting the W-2 and starting over.  Or, you can switch to the download version installed on your own computer which does not have the bug.
DianeW
Expert Alumni

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You may see only the short SE schedule however TurboTax will incorporate the self employment tax on your clergy W2 and housing allowance. Use the information below to enter your clergy W2 and/or self employment as well as your housing allowance.

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.

  1. Sign into your TurboTax account (online or desktop version)
  2. Use the search box, upper right
  3. Search for clergy or W2
  4. Jump to clergy or W2 (both take you to the W2 entry)
  5. Complete the W2 entry
  6. Continue to the screen "Do any of these uncommon situations apply to this W2?"
  7. Select Religious Employment
  8. Follow the screens to complete the process for paying your social security and medicare taxes.
  9. See the image 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.

  1. Select the Federal taxes tab (Business tab in Self Employed Online or TurboTax Home & Biz Desktop)
  2. Select Wages & Income (Business Income and Expense)
  3. Scroll to Business Income
  4. Start or Update 
  5. Use the information above to complete your return. (see image attached).

The wages, housing allowance and any self employment income are used for SE calculations as follows:  

  • Example of self employment tax calculation:  Self employment tax:  $3,000 x .9235 x .153 = $424
    • .153 x .50 = .0765  //  1 - .0765 = .9235

To review your Form 1040 for the self employment tax you can use the following steps:

To use this tool while you are signed into your TurboTax account (online) follow the steps here.

  1. Select My Account in the upper right
  2. Then select Tools 
  3. Choose View Tax Summary 
  4. Select Preview My 1040 above
  5. Scroll to line 57 to check the self employment tax
  6. Click the image attached to enlarge and view for assistance.

To use this tool while you are signed into your TurboTax account (desktop).

  1. Select Forms in the upper right
  2. Then select 1040, in the forms tree on the left
  3. Scroll to line 57 to check the self employment tax
  4. Select Step-by-Step to return to the interview
  5. Click the image attached to enlarge and view for assistance.