Clergy are taxed differently on the W2 than regular W2 workers. You should choose option #4.
The Church or Ministry does not pay Social Security or Medicare taxes for the Clergy and that information is missing from the W2. Self Employment tax is essentially Social Security and Medicare taxes. The rate is doubled as you are paying both your share and the employer share.
The housing allowance is not taxed for Income Tax purposes, as long as certain guidelines are followed. The housing allowance is, however, taxed for Self Employment (SS and Medicare) tax purposes. Most employers put the housing allowance on line 14 of the W2.
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