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.

[samhalverson7]

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.

[ShirlynW]

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.