TurboTax FAQ
TurboTax FAQ

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

Here’s how to enter your parsonage or housing allowance:

If you're not already on the W-2 entry screen, open your return. (To do this, sign in to the TurboTax mobile app and tap the orange Take me to my return button.) 

  1. Tap the red TurboTax checkmark (iPhone) or menu icon (3 lines; Android) in the upper left.
  2. Select Federal Taxes, and then Wages & Income. If you're asked how you want to complete this section, select I’ll choose what I work on.
  3. Select the Wages and Salaries section, and tap Wages and Salaries.
  4. Follow the instructions to import or manually enter your W-2.
  5. When you get to Box 14, enter CLERGY HOUSING as the Description, and then enter the Amount. Now tap Continue.
  6. Complete any other screens presented.
  7. When you reach the Do any of these uncommon situations apply to this W-2? screen, select the 4th box for Religious employment.
  8. On the following screen, select You earned this income for clergy employment.
  9. Enter your allowance amount 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.)
  10. Then on the Clergy Self-Employment Tax screen, select the appropriate option and click Continue again.
  11. On the Let’s review your box 14 screen, you’ll notice that we automatically added Other – not on the list above as the Category for your Clergy Housing allowance. You can leave this.
  12. If you’re asked if you want to add another W-2, select No for now (you can always add this later) and continue below.

Check if the W-2 adjustment has been made for your housing allowance

  1. You will now be on the Here's your W-2 info screen. Next to the W-2 you just entered, tap the Edit icon (3 dots).
  2. If the amount shown in the pop-up window (this is the Box 1 amount of your W-2) hasn’t been adjusted for your housing allowance, you should enter a Line 21 adjustment to income.
    • You'll need to  use TurboTax Online to enter your Line 21 adjustment to income.