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.
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