First of all, I am not an accountant.
The general rule is "A minister who receives a housing allowance may exclude the allowance from gross income to the extent it’s used to pay expenses in providing a home." AND
From a helpful website: "The fair rental value of a parsonage or the housing allowance can be excluded from income only for income tax purposes. No exclusion applies for self-employment tax purposes."
Secondly, I'll provide some guidance but it is blind because I don't know what is on your W-2.
You asked.... w-2 screens turbo tax asks these options which one do I pick:
a. pay self employment taxes on wages <-- Generally either FICA or SECA was withheld by the church on your wages or you must calculate it now, however, I'm not sure when to use this choice unless the church wrongly only calculated FICA/SECA on housing allowance. So ?? maybe someone else can give advice about this option. I would not choose this.
b. pay self employment taxes on housing allowance <-- if the church withheld FICA or SECA on your wages but not your housing allowance.
c. pay self employment taxes on wages and housing allowance <-- Choose if nothing was withheld on your W-2. (this is what I pick)
d. don't pay self employment taxes < -- I think this only applies if you are a RARE person who has filed for (and been approved for) the religious objection to Social Security.
FYI
Few ministers can opt out of Social Security by meeting the strict IRS guidelines required for filing IRS Form 4361, Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders.... IMHO This is a very unwise thing to do!!
Again, I'm not an accountant, but this is how I understand these choices. Hope you find this helpful.
Many regional denominational offices will provide ministers guidance on these matters.
