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Level 3
posted Jun 12, 2021 12:53:50 PM

Please help, filing due Tues - Non-statutory clergy - am I eligible for Tax Relief Related to COVID?

 As clergy, I get a W-2 but am considered self employed for SS & Med tax purposes. Box 13 is unchecked on my w-2 so I am not a statutory employee. 

 

One of the credits under the deductions and credits section is shown as “Tax relief related to COVID-19.”  Under that, two of the options are “self-employed sick leave credit” and “self employed family leave credit.”  It seems I’m qualified to seek these credits based on their descriptions but I want to make sure I’m considered self employed.  It makes a HUGE difference in our outcome. Thank you!

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1 Best answer
Level 15
Jun 13, 2021 2:55:27 PM

If you received a W-2 then you are not self-employed but if there was no SS or Medicare withheld and you received a housing allowance then you must pay the SS & Medicare that at self-employed rates (15.6% rather than 7.8%) on the housing alowance - that does not make you self employed, it just means that you must pay both the employees and employers share of the tax since the employer did not previously pay the other 7.8%.

 

After entering the W-2 TurboTax will ask if "Any of these uncommon situations  apply to you" - select "Religious  Employment" and you will be asked questions about it and housing allowance.

2 Replies
Level 15
Jun 13, 2021 2:55:27 PM

If you received a W-2 then you are not self-employed but if there was no SS or Medicare withheld and you received a housing allowance then you must pay the SS & Medicare that at self-employed rates (15.6% rather than 7.8%) on the housing alowance - that does not make you self employed, it just means that you must pay both the employees and employers share of the tax since the employer did not previously pay the other 7.8%.

 

After entering the W-2 TurboTax will ask if "Any of these uncommon situations  apply to you" - select "Religious  Employment" and you will be asked questions about it and housing allowance.

Level 3
Jun 13, 2021 6:31:38 PM

Thank you!  It sounds like I'm ineligible for COVID tax relief since I'm not self employed, then.  I was confused about not being a statutory employee but still paying taxes on SS & Medicare as if I'm self employed so this helps.  I appreciate your help!