suesue1
Level 3
03-11-2021
02:16 PM
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Clergy client has W-2 form all of which is designated housing allowance. Recorded that on W-2 worksheet but it's not adjusted out of total W-2 wages. Amount was listed as wages on W-2 with FICA & M/C withheld and housing allowance listed on Part II Line D & E. Still shows as taxable wages on the #1040.
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lfallin
Level 3
03-11-2021
02:18 PM
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on the bottom of the w2 form on proseries there is a place to indicate that the income/housing is a clergy and not taxable. It is way down at the bottom of the screen, and they do not usually pay social security or medicare tax on that as well.
dascpa
Level 12
03-11-2021
02:46 PM
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Years ago I was told to add a Misc Stmt to the tax return stating that the income was not taxable under Section 107 of the Code.
suesue1
Level 3
03-11-2021
05:20 PM
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I am not seeing that.
