No. Do not report the W2 you received. This is informational only. This is a housing allowance that you need to pay self-employment tax on. This is not reported as taxable income but you do need to pay Self-Employment tax on it. Here is how to report.
In the income section go to;
- Open or continue your return.
- Navigate to the self-employed income section:
- TurboTax Online/Mobile: Go to self-employed income.
- TurboTax Desktop: Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link.
- Answer Yes on the Did you have any self-employment income or expenses? screen.
- If you land on the Your 2024 self-employed work summary page, select Review next to the work you're adding income for.
- Answer the questions on the following screens until you arrive at Let's enter the income for your work.
- Select the form that applies to your situation and select Continue.
- Continue down until you report your housing allowance as income.
Once this has been reported, your SE tax has been reported in your return. Now you will want to exclude that income do it won't be taxable to you. You will do this by:
- Log into your account
- Select Wages and income
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed. Here call this Excluded Pastor's Housing Allowance and then report the income as a negative number to offset the amount reported in the first set of steps. Here you will enter -XXXX.XX.
@patrickbossio
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