Question

If clergy is paid in housing allowance do you claim self-employment and do you claim any deductions?

Forum|Forum|4 years ago
February 28, 2022
3 replies
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Also, is the housing allowance portion shown on a 1099/Schedule C along with any deductions?

TurboTax Self Employed Online

A qualified minister's housing allowance, subject to certain limitations, is excluded from federal income tax. Also, the fair rental value of a church provided parsonage is excluded from federal income tax. The housing allowance IS subject to self-employment tax, as is the value of a provided parsonage.

The total amount of the housing allowance is included in income in order to determine self-employment tax reported on Schedule SE.

How you enter your housing allowance depends upon how it was reported to you. See the following TurboTax Help article for how to enter your housing allowance. Note, at the bottom of the article are additional links for other scenarios.

How do I enter a parsonage or housing allowance if I got a 1099-NEC?

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W

WesH1

I’m wondering if I select “pay SE tax on wages and housing allowance” under the W-2 income tab, how do I add deductions for vehicle expenses and mileage? Or should I file all my income (including housing allowance) under Self-Employed Income?