When I enter qualifying expenses for clergy housing is it qualifying expenses for the year?

Yes, there is a housing allowance available for clergy members.   Housing income for clergy is exempt from income tax, but not self-employment tax.   

 

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.  The deductible amount is the lowest of:

 

• The amount actually used to provide or rent a home.
• The fair market rental value of the home (including furnishings, utilities, garage, etc.).
• The amount officially designated (in advance of payment) as a rental or housing allowance.
• An amount which represents reasonable pay for services.

 

A clergy member is not allowed the special housing allowance if the church has not previously designated an amount for it in writing.  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.   Depending on how you received your allowance, one of the links below will help you get it entered in TurboTax.   IRS Q&A

 

• Enter housing from a W-2
• Enter housing from a 1099-nec
• Enter housing from a 1099-R