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Clergy and income tax

Submitted by jml57@zoomtown.com on 22 May 2008 - 8:26pm

I am a minister and receive a housing allowance that is non-taxable for income tax. How can I adjust for this in the earning section.

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Submitted by Lowell Williams on 24 May 2008 - 1:53am.
1

Include it as a non-taxable Special Receipt (Second tab in "Special")

Submitted by jml57@zoomtown.com on 24 May 2008 - 10:37am.
2

Would this reduce the social security that I need to pay of the housing allowance?

Submitted by Lowell Williams on 27 May 2008 - 3:23pm.
3

hsudavidmorgan at yahoo.c wrote:Would this reduce the social security that I need to pay of the housing allowance?

That may be a special cirumstance. Do you pay some tax and not others? If you don't include this income for social security purposes, you probably wouldn't get it included when your benefit is calculated.

Submitted by jml57@zoomtown.com on 28 May 2008 - 10:05pm.
4

That's the dilemma. Housing allowance is nontaxable for income tax but is taxable for social security. Does the program allow this in any way.

Submitted by Dick Munroe on 29 May 2008 - 11:13am.
5

hsudavidmorgan at yahoo.c wrote:That's the dilemma. Housing allowance is nontaxable for income tax but is taxable for social security. Does the program allow this in any way.
This makes it a little hard, but still doable.

1. Add the housing allowance into your earnings. This gets it included in your social security calculations.

2. Add a special expenditure, excludible from AGI that matches the amount which takes care of the tax consequences.

Best,

Dick Munroe

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