Denisev1220
Expert Alumni

Retirement tax questions

It is usually located in Box 14 of your W-2.

 

Here are the basic steps:

  1. When you get to Box 14 of the W2 entry, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W2.) We’ll automatically classify the allowance as Other - not on the list above. Select Continue.
  2. If you get additional screens, answer those questions.
  3. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the box for Religious employment, then select Continue.
  4. On the following screen, choose You earned this income for clergy employment and select Continue.
  5. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
    • Your qualified housing expenses
    • The fair rental value of your housing expenses
    • Your housing or parsonage allowance
  6. Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

I hope this helps.

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