I am clergy who receives a W2. I have entered this including my housing allowance listed in box 14 into the system. When asked about additional self employment income, I selected yes, as I have made some side income from preaching or speaking at churches. When I select that this income is from religious services and that it was clergy services, it asks again about my housing allowance amount which I already entered on my W2 and it has already calculated and charged self employment taxes for. If I enter my housing allowance here, it is as if it charges me the self-employment income on it again and increases my federal tax due by over $1000. This is before it even asks how much I made from these speaking arrangements. Is there something I am doing wrong? A way I can enter this income without the software double-dipping on my housing allowance SE taxes? It is only $500 of income, but before I can even enter that $500 amount, it is skyrocketing my taxes due after asking what my housing allowance was.
Thank you in advance!
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Do not enter your housing allowance again. If it appears in the W-2 you are fine.
It doesn’t give me an option not to. How do I not enter it? It says “must enter a value greater than zero “.
When you entered the housing allowance, you should have also entered qualifying expenses. All of this is entered in the w2 section and is not entered again. The next screen asks about paying self-employment tax. If all of your housing allowance was spent (as I would suspect), then you only need to pay SE tax on wages. Please see Guidestone Guide for clergy housing tax deductions.
Be sure to select the clergy option when entering the W2 and TurboTax will do all the calculations.
for the bottom part. Do you check to pay taxes on income or housing allowance or both?
thank you in advance
You will click to pay income on both unless you have filed to be exempt from paying social security and Medicare taxes or you already had social security and Medicare taxes paid through your W-2 for either wages or housing and allowance.
For more information, see the link below:
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