clergy housing allowance

I need to know where to enter a clergy housing allowance on 1099 income


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Hi Benjaminpruitt,

The clergy housing allowance is subject to self-employment tax but not necessarily income tax. The software will ask you if you received this form. You will be able to enter all the information in the related boxes, as it appears on your form. 

If you would like to jump to the location to enter this form in the software, simply type '1099-MISC' in the search box in the upper right of the TurboTax software. The first option will be 'Jump to 1099-MISC,' which will take you directly to the 1099-Q section of TurboTax.

You can take a deduction for your housing expenses as allowed. In order to take the deduction, the software will ask you about these expenses when you are entering your related W-2 income. When you are entering your W-2 clergy income, follow the steps below:

  • During the W-2 interview, at the screen "Do any of these apply to this W-2" select "I earned this income for religious employment" box
  • The software will now provide you with the questions related to your situation
  • On the "Tell Us About Your Housing Allowance" page, you must enter the Parsonage amount, and also the Qualifying Expenses.

The Qualifying Expenses are the lowest of these amounts:

- Your qualified housing expenses

- The fair rental value of your housing expenses, or

- Your housing or parsonage allowance

This will cancel out the amount used for housing, so if the allowance is more than what you used, it gets added to Line 7 of the 1040 as Excess Allowance.

If you would like to refer to a TurboTax resource, I've included a link below:

Let me know if you have additional questions. Thank you for choosing TurboTax!
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