TurboTax FAQ
TurboTax FAQ
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How do I enter a parsonage or housing allowance reported on a W-2?

If you're using the TurboTax mobile app, follow these instructions.

If you’re using TurboTax CD/Download, click the link below.

Otherwise continue:

If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and click the orange Take me to my return button.) Then search for "W-2" or "W2" (lower-case also works) and click the "Jump to" link in the search results. Follow the instructions to import or manually enter your W-2.

  1. When you get to Box 14, enter CLERGY HOUSING, followed by the amount, and then select the last item in the drop-down which is Other - not on the list above. Click Continue. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W2.)
  2. If you get additional screens, answer those questions.
  3. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the 4th box for Religious employment, then click Continue.
  4. On the following screen, select You earned this income for clergy employment and click Continue.
  5. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
    • Your qualified housing expenses;
    • The fair rental value of your housing expenses; or
    • Your housing or parsonage allowance. (Housing allowance – qualifying expenses = taxable income)
  6. Click Continue, and on the Clergy Self-Employment Tax screen, select the appropriate option and click Continue again.

You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

  1. Search for "other reportable income" and then click the "Jump to" link in the search results.
  2. Answer No to Did you receive any other wages? and click Continue.
  3. Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and click Start next to Other reportable income.
  4. Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, e.g. -10,000).

TurboTax CD/Download Instructions

If you're not already on the W-2 entry screen, search for "W-2" or "W2" (lower-case also works) and click the "Jump to" link in the search results. Follow the instructions to import or manually enter your W-2.

  1. When you get to Box 14, enter CLERGY HOUSING, followed by the amount, and then click Continue. (This amount might be reported to you in a letter from the church or in your employment contract if not on your W2.)
  2. We’ll automatically classify the allowance as ‘Other’. Click Continue.
  3. If you get additional screens, answer those questions.
  4. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the 4th box for Religious employment, then click Continue.
  5. On the following screen, select You earned this income for clergy employment and click Continue.
  6. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:
    • Your qualified housing expenses;
    • The fair rental value of your housing expenses; or
    • Your housing or parsonage allowance. (Housing allowance – qualifying expenses = taxable income)
  7. Click Continue, and on the Clergy Self-Employment Tax screen, select the appropriate option and click Continue again.
  8. If you get additional screens, answer those questions.

You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

  1. Search for "other reportable income" and then click the "Jump to" link in the search results.
  2. Answer No to Did you receive any other wages? and click Continue.
  3. Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and click Start next to Other reportable income.
  4. Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, e.g. -10,000).

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