It is not necessary to create a Form 1099-MISC. A letter from the church for your file stating the housing allowance is sufficient because they are required to have this in their written records.
You can use the following information to enter the housing allowance for self employment tax. As a reminder the minister is required to be able to show that all of the housing allowance was spent for that purpose and any amount in excess of those expenses is required to be reported as income.
You will create a business/self employment activity for the minister income (and/or housing allowance). For the principal business code, use 813000 (religious organization). After you enter that business code you will get a
screen about clergy income. Select "I Need to Pay Self-Employment Tax on
This Income." The next screen will ask you to enter the amount of your
housing allowance.
You can go directly to the area
to begin to enter your income and expense for your pastoral self employment.
- Select the Federal taxes tab (Business tab in TurboTax Self
Employed Online or TurboTax Home & Biz Desktop)
- Select
Wages & Income (Business Income and Expense in TurboTax Self Employed Online or TurboTax Home & Biz Desktop)
- Begin the business profile and enter the business code above
- Use the
information above to complete your return. (see image attached)
