My wife is clergy and we receive a parsonage of fair market value of 11000. On turbotax for qualifying expenses would we put the 10000 again or is that in additional to?

[Opus 17]

When you enter your W-2, check the box for "religious wages".  Answer "both" to how you should be taxed; the other options are for unusual circumstances.  Enter the amount of your housing allowance.  For your expenses, enter what you actually paid for housing, but not more than the allowance.  If your actual housing expenses are less than your housing allowance, the difference is added to your taxable income.  If your actual expenses are more than the housing allowance, you don't get an additional tax break. 

[DianeW777]

Perhaps!  When you enter the fair market value of the parsonage allowance, it asks for the actual cost of the expenses for your parsonage.  

Enter the lowest of these amounts:

• Your qualified housing expenses
• The fair rental value of your housing expenses plus utilities
• Your housing or parsonage allowance

If you received more than you used to pay for your qualifying expenses, it still has to be included in your gross income.  Don't worry, we will do the calculation for your based on the amounts you enter.  

[Opus 17]

OK, maybe I mis-read.  You live in a parsonage and the church assigned a fair market value of $11,000, but you don't get an additional cash housing allowance?  In that case, your actual housing expenses are the same value that the church has determined is the FMV of the parsonage. 

[edward-horvath8]

@Opus 17 

Yes she gets a standard W2 with her paycheck and also we stay in a parsonage provided by the church with a fmv of 11000.  In the form is says to enter our parsonage and qualifying expenses.  I put 11000 in the box labeled for 'parsonage or housing allowance received'. The next box is where I'm confused.  It's labeled qualifying expenses.  It says to enter the lowest of these amounts: your qualified housing expenses, the fair market value of your housing expenses plus utilities or your housing or parsonage allowance.  Should that number be zero?

[edward-horvath8]

@DianeW777 

We don't receive any money from her work other than her standard paycheck.  They cover our housing. So I am still confused on what to put for qualifying expenses.

[Opus 17 · Accepted solution]

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@edward-horvath8 wrote:

@Opus 17 

Yes she gets a standard W2 with her paycheck and also we stay in a parsonage provided by the church with a fmv of 11000.  In the form is says to enter our parsonage and qualifying expenses.  I put 11000 in the box labeled for 'parsonage or housing allowance received'. The next box is where I'm confused.  It's labeled qualifying expenses.  It says to enter the lowest of these amounts: your qualified housing expenses, the fair market value of your housing expenses plus utilities or your housing or parsonage allowance.  Should that number be zero?

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In the case of a parsonage, your qualified expenses are the same as the fair market value of the parsonage.