Opus 17
Level 15

Deductions & credits

@tbhoye wrote:

I am a chaplain employed by the state of Maryland.  Where do I enter the parsonage allowance on the SR-1040?  Last year I entered it on line 8 of Schedule 1.  This year it does not allow me to do that.  When attempting to put it in the W-2 section of the 1040, it does not allow me to enter a number less than 0.  Thank you in advance for your help in this matter.

A parsonage allowance is not subject to income tax, only self-employment tax.  Why did you pay income tax on your parsonage allowance last year?  You did it backwards, you paid income tax but not self-employment tax. 


You may want to file an amended 2020 return.  You may need a lot more education on your tax position as well.


These are good guide books.


*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*