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Clergy housing allowance and SE tax issue

Forum|Forum|3 years ago
February 17, 2023
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My desktop for TT business 2022 is doubling my clergy housing allowance on form Schedule SE Adjustments worksheet which feeds into (therefore doubles) the SE tax calculation. The amount of the housing allowance is correct on the schedule C. Can someone at TT check if this is a program issue?

Best answer by ThomasM125

I am wondering why you have a schedule C. Normally, you would receive a W-2 form reporting your wages from your clergy work and after entering it you would indicate that you had a parsonage allowance and later on indicate that you want self-employment taxes to apply to the parsonage allowance. If you did this, there would be no schedule C generated. So, you need to see if you ordered the self-employment tax to apply to your wages and also completed a schedule C, as that would duplicate your self-employment tax.

You would see this after you entered your W-2 form, that is where the self-employment tax would come from.

T

ThomasM125Answer

I am wondering why you have a schedule C. Normally, you would receive a W-2 form reporting your wages from your clergy work and after entering it you would indicate that you had a parsonage allowance and later on indicate that you want self-employment taxes to apply to the parsonage allowance. If you did this, there would be no schedule C generated. So, you need to see if you ordered the self-employment tax to apply to your wages and also completed a schedule C, as that would duplicate your self-employment tax.

You would see this after you entered your W-2 form, that is where the self-employment tax would come from.

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