I am a Worship Arts pastor of a church, needing help on answering the question about "Clergy self-employment tax".

[SMoran]

Received a W2 with Box 1 and 14 only filled out.  Box 14 contains my housing allowance.  Need help answering if I pay SE tax on wages only, housing allowance only or on both?  No SS or Medicare taxes were taken out.

[ErnieS0]

You should answer "Pay self-employment tax on wages and housing allowance" if Social Security and Medicare were not withheld from your pay and you are not exempt.

The IRS says, "If you are a member of a religious order who hasn't taken a vow of poverty, your earnings for ministerial services you perform as a member of
the order are subject to SE tax."

You will pay income tax on your Box 1 compensation and SECA on Box 1 and your housing costs.

Members of the clergy are able to deduct business expenses against Social Security/Medicare tax. 

• Click on Other Tax Situations at the top
• Scroll down to Business Taxes
• Click on Self-Employment tax
• Click Make Adjustments on the screen Self-Employment Tax
• Enter the amount of your Ministerial Business Expenses

Related Reference

• Publication 517 Social Security and Other Information for Members of the Clergy and Religious Worker...

[SMoran]

Thank you so much for responding.  This makes better sense than how it is explained.  Appreciate it