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Level 1
March 25, 2026
Question

Clergy receive a housing allowance. The housing is not subject to Federal Income tax, but is subject to SE tax. How do I record it only the SE tax and not the housing $

  • March 25, 2026
  • 2 replies
  • 8 views
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2 replies

dascpa
Level 11
March 26, 2026

The W-2 should show the amount of parsonage allowance - typically in Box 14. On the W-2 Worksheet scroll down to Part II - Clergy..... Enter info on Lines D-F as applicable.

Taxprohere
Level 7
March 26, 2026

You can also enter the allowance directly on the S/E adjustment worksheet.

Intuit Community Champion
March 26, 2026

Be sure it was not included in box 1 on the W2, a lot of them are, and the housing allowence is not subject to federal income tax.See this link from IRS.

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/ministers-compensation-housing-allowance/ministers-compensation-housing-allowance