It depends. If you received no other income from your bivocation pastoral duties you can enter the housing allowance using the steps below even though you do not have a W-2.
- 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.
TurboTax will list this appropriately on Schedule SE for the social security and medicare taxes. There will be no personal income tax unless the actual home expenses are greater than the housing allowance provided.
Note: To file electronically you may need to enter $1 in the wage slot and you would also need the church name and EIN. If you do not have those, then you will file by mail.
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