Ministers: How do I report my parsonage?

To report your parsonage, go to: 

1. Federal Section
2. Other Taxes
3. Self-Employment Tax, Reported on Schedule SE
4. Check the box for Minister/Clergy
5. Complete the Clergy Tax-Free Income Worksheet
   • You must enter the gross income reported on the return to correctly calculate the SE tax (this is not pulled from the return)
6. If the church provides you with a parsonage (church owned), check the box:
   • Provide the Fair Rental Value of the parsonage
   • Provide the Annual Expenses for Utilities
   • If you have a utility allowance in your contract/agreement, please include the amount allowed
7. If the church provides you with an allowance (parsonage not owned by church), you must:
   • Provide the Fair Rental Value of the home (include utilities if applicable)
   • Provide the Annual Parsonage or Rental Allowance
   • Provide the Actual Annual Expenses for Parsonage

The Annual Utility Allowance and Actual Annual Expenses are not required to complete the calculation. However, if you have a separate utility allowance, these amounts should also be included in the return. 

Your total income subject to SE Tax (wages and parsonage) is shown on line 2 of Schedule SE. For a breakdown of how the program arrived at the amount shown on line 2, see Worksheet 3 in your PDF generated from the Summary/Print page of your account.