Clergy tax: fair rental value of parsonage

[BCFrog]

I live in a parsonage provided by the church that employs me, and need to pay self-employment tax on the fair rental value of that parsonage. This is not the housing allowance that's a part of the interview. That amount has to be the least amount of three items in the interview, and this amount goes on Part II, line 5b of the Schedule SE Adjustmens Worksheet. Instead, it appears that this amount should go on Part II, line 2 of the Schedule SE Adjustments Worksheet. (That's not clear on the TurboTax form, but is clear on the form downloadable from the IRS.) I tried override the amount on line 2, but am unable to transmit my returns because TurboTax thinks I've made a mistake. 

Any help for overriding or inputting the amount so that it appears on the correct line would be appreciated. 

[BCFrog]

It looks as though I misread the instructions. The fair rental value should be included on line 2 of Schedule SE-S. But the amount still shouldn't be a part of the housing allowance interview. It's subject to SE tax, but not income tax, so I don't think I should be fiddling with that inteview information. 

[JohnW152 · Accepted solution]

That’s correct, line 2 of Schedule SE is the correct place to make the entry of fair rental value.

Please see the IRS’s Publication 517, Social Security and Other Information for Members of the Clergy and Religious Worke... for more information that might be useful to you.

[BCFrog]

Thanks for your confirmation. I wound up inputting the parsonage fair rental value on Schedule SE Adjustments Worksheet Part II, line 6, which changed line 2 of Schedule SE to the correct amount and allowed me to continue through the process to transfer my returns without a show-stopping error.