Deductions & credits
It depends. If the property is in your name, you would continue to be liable for the property taxes and not the church. The rent you would charge the church is not something we would respond to and would suggest you seek guidance from a professional such as an attorney.
As far as your housing allowance, if you spend the money you receive on housing any money you do spend is not subject to personal income tax even though it is subject to self employment tax (social security and medicare taxes).
- When entering your W-2 be sure to follow the instructions below.
- the screen 'Let's check for uncommon situations', selected Religious employment > Continue > Select 'Clergy' on 'Let's dig into your religious employment.
- Continue to enter Housing allowance and Qualifying expenses (any amount in excess of your costs would be included for personal income tax) > Continue
- Select 'Pay self employment tax on my wages and housing allowance' > Continue
- Complete the rest of your income, credits and deductions
