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Since something is amiss, it may be best to delete the existing W-2 and walk through these steps to enter your housing allowance reported on a W-2:
First, delete your W-2:
·
Open
your return.
(To do this, sign in to TurboTax and click the
orange Take me to my return button.)
· Search for W-2 (upper- or lower-case, with or without the dash) and then click the "Jump to" link in the search results.
· This brings you to the Here's your W-2 info screen. Click the “trashcan” icon (delete) next to the unwanted W-2 and then answer Yes on the following screen.
If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and click the orange Take me to my return button.) Then search for "W-2" or "W2" (lower-case also works) and click the "Jump to" link in the search results. Follow the instructions to import or manually enter your W-2.
You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:
Here's some more info, if needed:
Members of the clergy (ministers, members of a religious order, and Christian Science practitioners and readers) and religious workers (church employees) must pay self-employment tax (SE tax).
The following income is included in the SE tax calculation on Schedule SE:
Clergy housing is only included as income when determining your self-employment taxes, not when calculating your federal income tax.
You aren’t required to pay SE tax when any of the following applies:
As a licensed, commissioned, or ordained minister, you may be able to deduct the fair market value of a home, a parsonage (in-kind housing), or a housing allowance.
A clergy person is not allowed the special housing allowance if the church has not previously designated an amount in writing. The church must have this in writing before you can use it.
You can deduct the lowest of these amounts:
The housing allowance payments must be used in the year received, and any allowance that exceeds actual housing expenses counts as income.
Although the excludable portion of clergy housing isn't subject to federal income tax, you'll still have to pay self-employment taxes on it.
I am trying to follow the steps here, but I don't see a jump to the "other reportable income" in the search. So I can't find the Line 21 adjustment to income and the steps after that. Any help?
Here is another way to get to the Other Reportable Income section:
You can follow the rest of MichaelDC's directions to enter a line 21 adjustment to income, which I've copied here for your convenience:
Thank you!
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