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Get your taxes done using TurboTax
You can remove that second W-2 and just report the housing allowance. First delete the W-2 then follow these instructions.
If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and open or continue your return) Then search for W-2 and select the Jump to link in the search results. Follow the instructions to import or manually enter your W-2.
- When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W2.) We’ll automatically classify the allowance as Other - not on the list above. Select Continue.
- If you get additional screens, answer those questions.
- When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
- On the following screen, choose You earned this income for clergy employment and select Continue.
- Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
- Your qualified housing expenses
- The fair rental value of your housing expenses
- Your housing or parsonage allowance
- Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.
When you see the Your W-2 info so far screen, select Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:
- Search for other reportable income and select the Jump to link in the search results.
- Answer No to Did you receive any other wages? and Continue.
- Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
- Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, for example -10,000).
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February 17, 2021
5:22 PM