Dixon2045
New Member

Clergy Housing Allowance

I submitted our 2024 return this week. My husband is a pastor for a small rural church. This is a side job for him. He is exempt from Social Security on his religious income (IRS form approved) because he pays Social Security on his secular income. We received a W2 for his housing allowance (which is all they give him). When I entered it in our return it dropped our refund by over $1600.00! I know we aren't supposed to pay taxes on housing allowance. Did I do something wrong? If so, how do I fix it?