Per IRS, clergy 's housing allowance is not taxable and therefore not subject to income tax. However, the housing allowance is subject to self-employment tax. Because it is a tax-free housing allowance, you cannot deduct work-related expenses such as supplies or mileage, due to the Deason rule.
To enter your housing allowance in TurboTax Deluxe online version, go to:
Per IRS, clergy 's housing allowance is not taxable and therefore not subject to income tax. However, the housing allowance is subject to self-employment tax. Because it is a tax-free housing allowance, you cannot deduct work-related expenses such as supplies or mileage, due to the Deason rule.
To enter your housing allowance in TurboTax Deluxe online version, go to:
The first step in either version of TurboTax is to add or edit a Schedule C business.
In TurboTax Desktop, use the Find box in the header and search for "schedule c" and jump to the start of that section.
Then start on Step 3 of this post: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3320424">https://ttlc.intuit.com/questions/3320424</a> and follow to the end.
If you haven't already entered Form 1099-MISC, enter it now. Select the Schedule C business you just set up. TurboTax will link the 1099-MISC income with that business.