@dmertz wrote:
"Even subtracting the deductible portion of SE tax attributable to the $16,970 should be more than $15,000."
TurboTax requires the user to select whether to calculate SE tax on wages only or on wages plus the housing allowance.
"Both" is almost always correct (and likely is in this case); what is puzzling is why the IRS or Turbotax would penalize someone on the IRA calculation. In this case, the IRA eligible amount for $16,970 of wages with no housing allowance would be about $15,600. By adding a housing allowance, the IRS eligible amount drops below $15,000, even though the wage portion hasn't changed. This doesn't seem equitable. I want to see if the behavior is similar in previous years and I want to check my clergy reference guides if I can find one that does not require a subscription.
