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New Member
posted Apr 17, 2023 8:25:07 PM

Why does my tax go up when I include the fair market value of my parsonage (I'm clergy)? I should not be taxed for the parsonage.

At first I did not post a fair market value for the parsonage. Then I went back and posted an amount and my taxes raised significantly.

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1 Replies
Level 7
Apr 18, 2023 6:27:02 AM

Inadvertently, you have entered the parsonage incorrectly. The follow the steps below,

 

  1. Open TurboTax
  2. Federal > Wages & Income > Job (W-2) > Edit/Add.
  3. Delete the W-2 on the screen, "Your W-2 info so far."
  4. Add a new W-2.
  5. Enter the W-2 > Continue until you see the screen below. Select "Religious employment."

 

     6.  Continue > Select the correct option > Continue.

 

 

 

    7.  On the screen below enter the parsonage or housing allowance. Continue.

 

 

 

 

     8.   On the screen below select how the taxes should be calculated.