Taxpayer is on social security and is also a minister with a church. He has a wage in box 1 of the W-2, schedule C income and some excess housing allowance that is reported with the wages on the form 1040. I added the wage from the W-2, plus the schedule C net income less half the FICA tax on the schedule C income. I expected to find this number on the Worksheet called Social Security recipients who contribute to a traditional IRA line 2.
The number on line 2 is much lower and is restricting the IRA contribution.
Do you know how I can see the math the program is using to get to wages and other earned income on line 2 of this worksheet? I am afraid the software knows a special rule for clergy that I don’t know. I was going to just override the calculation but hope to first see the math
Any ideas?
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You can right-click on the number and select Data Source. The earned income should be self-employment earnings minus half of the self-employment tax plus any W-2 income. Was any portion of the earnings a parsonage allowance?
Thanks that's helping. He had $3,000 wage in the W-2 box 1, nothing in box 3 and 5.
The calculation is ignoring that as a wage to include in the IRA calculation. I can't understand why, maybe I missed a box?
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