Follow the instructions to import or manually enter your W-2.

(To do this, sign in to TurboTax and open or continue your return.) Then search for W-2 and select the Jump to link in the search results. If you're not already on the W-2 entry screen, open your return.

Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, for example -10,000).

Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.

Answer No to Did you receive any other wages? and select Continue.

Search for other reportable income and select the Jump to link in the search results.

If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. When you see the Your W-2 info so far screen, select Edit to view your W-2 information. Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.The fair rental value of your housing expenses.For Qualifying Expenses, enter the lesser of: Enter your allowance on the Okay, Tell Us About your Clergy Housing screen.On the following screen, choose Clergy and select Continue.When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.If you get additional screens, answer those questions.

When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu.

Open or continue your return in TurboTax.

If it's not in box 1, it may result in an over adjustment of income. These instructions will work if your housing allowance is included in box 1 of your W-2. To enter your parsonage or housing allowance on your W-2, follow the steps below.

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