When you receive a Form 1099-MISC Box 7 and not a W-2, Enter the 1099-MISC as business income. 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. Continue through the business interview and enter your 1099-MISC.
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
- Scroll to Business Income
- Start or Update
- Use the information above to complete your return. (see image attached).
