Clergy Housing Allowance

joysaniel · ‎May 29, 2023

I have religious employment with a university. I received a letter stating that I have a portion of my salary, $3,100/month will be designated as clergy housing allowance. This amount was not listed on my W2s anywhere.

I've researched how to report it, and am seeing different options, such as:

1) Report in Box 14 (when I do this, it does not reduce the wages in box 1)

- It goes on to ask housing allowance received and qualifying expenses. When I enter the amount, per the letter, it actually increases my taxes owed as I suppose this way is actually adding to the salary instead of decreasing the salary.

2) Report as Misc Income and enter as a negative number (this way does actually decrease the amount of taxes owed, but not sure it if is totally correct).

Please advise,

Thank you