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Housing Allowance Evaporates?

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    Housing Allowance Evaporates?

    As far as I can tell, preachers are still getting W-2s with specified untaxable amounts labeled as housing allowance.

    Schedule SE makes no mention of housing allowance (unless I'm blind). However it refers the reader to instructions
    for ministers to define how much to put in the line item. As far as I know, a minister's housing allowance is still
    tax-exempt from income tax, taxable for SE tax, and creates an allocation process for deductible expenses.

    Has anyone else noticed that the bucket for housing allowance has disappeared from the taxpayer's Sch. SE?

    #2
    2014 Instructions for Schedule SE (Form 1040)

    The reporting of minister's housing allowance is discussed on page 1 of the instructions top of column 3

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      #3
      Housing allowance is exempt from FIT UNLESS actual qualifying expenses OR fair rental value is less than claimed housing allowance. If not, exempt the lowest of the three.

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        #4
        I was curious about this after seeing the original post, so I prepared a clergy return today.
        My software (Drake) handles it the same way as in the past.
        It shows the self employment income on line 2 of the SE, along with a note to "See Clergy Attachment", which the software produces separately.
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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          #5
          Mine too. There are four clergy worksheets of which one is self-employment and it auto-populates Sche SE from that. Of course, you have to know how MUCH is housing allowance in order to complete the worksheet.

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