How do I report my parsonage in the program?
To report your parsonage, go to:
- Federal Section
- Other Taxes
- Self-Employment Tax Schedule SE
- Check the box for Minister/Clergy
- 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)
- 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
- 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.