Need Some Help Regarding A Minister's Return Please

[WhiteOleander]

New client. I am preparing 2010, 2011, & 2012. She has a W-2. Nothing in box 1. Withholding in box 2. Housing allowance reported in box 14. All earnings are designated as housing allowance.

She states that the W-2 is reporting disability. She is no longer working. There is a letter from United Methodist organization stating that after the minister receives disibility for 6 months, it is no longer subject to SECA. I can't find anything on the IRS site or my clergy books addressing this. Does anyone have any info?

Thanks

[MAMalody]

The income tax regulations specify that “income which is excludable from gross income under any provision of subtitle A of the Internal Revenue Code is not taken into account in determining net earnings
from self-employment,” with certain exceptions. Treas. Reg. 1.1402(a)-2(a). I have not thoroughly researched this, however, if she paid for the disability policy wouldn't it fall under this provision.