Question

Why does my tax go up when I include the fair market value of my parsonage (I'm clergy)? I should not be taxed for the parsonage.

At first I did not post a fair market value for the parsonage. Then I went back and posted an amount and my taxes raised significantly.

Inadvertently, you have entered the parsonage incorrectly. The follow the steps below,

Open TurboTax
Federal > Wages & Income > Job (W-2) > Edit/Add.
Delete the W-2 on the screen, "Your W-2 info so far."
Add a new W-2.
Enter the W-2 > Continue until you see the screen below. Select "Religious employment."

6. Continue > Select the correct option > Continue.

7. On the screen below enter the parsonage or housing allowance. Continue.

8. On the screen below select how the taxes should be calculated.

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