Partial Year Housing Allowance

Forum|Forum|6 years ago
February 17, 2020
5 replies
53 views

My husband started 2019 as a normal W2 employee at a church and was ordained and became a clergy in August. He then started a housing allowance and paying self employment tax. I received a W2 from the church. How do I account for the change halfway through the year in turbo tax? I don't see an option.

MaryK4

Level 15

After you enter the W2 information, look for the screen below. It will ask you the questions to enter your housing allowance and self-employment tax. Did the W2 have the boxes 3-4-5-6 completed for the partial year?

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nicolemagelssenAuthor

Level 2

My main question is, I've read online that it matters that 1/2 of the year was normal W2 income and the other 1/2 of the year was clergy. A previous post said to enter two different W2s but that seemed really messy to me.

Boxes 3-6 were completed for the entire year I believe.

KathrynG3

Level 14

Yes, you are correct~that would be messy, and is not recommended. You can be clergy and receive Form W-2 and/or Form 1099-MISC.

For your husband's income, I recommend you begin by entering the Form W-2 exactly as he received it.

To enter this in TurboTax: How do I enter a parsonage or housing allowance reported on a W-2?

For the self-employed portion of his earnings he received, you can trust TurboTax to help you capture the details, including some or all of the following: