topic why is my clergy housing not being deducted from my taxable income in Retirement tax questions

why is my clergy housing not being deducted from my taxable income

myarbrough61 — Wed, 28 Jan 2026 06:13:09 GMT

Turbo tax deducted my standard deduction but not my clergy housing

Re: why is my clergy housing not being deducted from my taxable income

JohnW152 — Thu, 30 Jan 2025 17:40:21 GMT

How you claim the exclusion depends on how the housing allowance was reported to you.

See whichever of the following TurboTax Help articles are appropriate for entry guidance:

[Edited 1/30/2025 \| 9:39 am PST for verbiage]

@myarbrough61

Re: why is my clergy housing not being deducted from my taxable income

Opus 17 — Thu, 30 Jan 2025 18:01:36 GMT

If your clergy housing allowance is reported in box 1 of your W-2 along with your other wages, the church is doing it wrong. You can never "deduct" a housing allowance from your income. The housing allowance should not be included in the first place. It is only added back if your qualified expenses are less than the allowance. If your clergy housing allowance is reported in box 1 of your W-2 along with your other wages, you need to get a corrected W-2 from your church. Don't try and file your tax return until you get a correction.

If your clergy housing allowance is correctly excluded from your box 1 wages, then you need to add it by checking the box for "religious wages" on the page of special circumstances when entering your W-2. you will be asked for the amount of your housing allowance and the amount of your qualified expenses. If your qualified expenses are less than the housing allowance, the excess allowance is properly added to your other taxable income.

And don't forget, the housing allowance, even if excluded from income subject to income tax, is always subject to self-employment tax.