Question

Which option do I chose for self-employment tax for clergy?

Forum|Forum|6 years ago
June 6, 2019
1 reply
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I'm having trouble knowing which option to select for self-employment tax for clergy. I receive mainly housing allowance from my employer. They withheld money throughout the year from my housing allowance for "self-employment taxes." I just don't know which of the options to select:

1. Pay self-employment tax on wages only

2. Social Security and Medicare taxes have been withheld

3. Pay self-employment tax on housing allowance only

4. Pay self-employment tax on wages and housing allowance

Option 5 doesn't apply to me.

TurboTax Business Windows

D

DianeW777

You should select number 4. Pay self-employment tax on wages and housing allowance. It is assumed that as a clergy employee, the employer is not withholding social security or medicare tax on any part of your income.

If you receive a W2, which includes your housing allowance then this is the correct selection. If you have no wages in box 1 then you can put $1(one dollar) so that the software can understand the information. A zero for wages will cause complications for E-file.

Review your W2 entry and use the images attached to assist, click to enlarge and view.

Sign into your TurboTax Account
Select Federal, in the black navigation bar on left
In the search box, upper right, type w2 > jump to w2
Continue to view your entries.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

N

navyross01Author

So boxes 4 and 6 are empty on my W-2. However, according to our payroll person, he said the amount in box 2 was taken out for social security throughout the year for my housing allowance. Does that even make sense? If so, does that mean I've already paid that? It seems like all the other forums on this type of question show that number 4 is the correct response. I just want to make sure as the amount changes dramatically when I select different options. The only other response I think might be appropriate is to pay self-employment tax on wages only.