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Retirement tax questions
It is usually located in Box 14 of your W-2.
Here are the basic steps:
- 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.
- If you get additional screens, answer those questions.
- 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.
- On the following screen, choose You earned this income for clergy employment and select Continue.
- 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
- 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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July 26, 2023
1:37 PM