Excess housing allowance is generated when the housing allowance the clergy member received from the church or organization is more than the amount actually used to provide a home.
To access the housing allowance information in your TaxAct® return (Online or Desktop):
Click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
Click Taxes to expand the category, click Self-employment tax adjustments
Proceed to the screen titled Self Employment Tax - Housing Allowance and click Yes
Select Church Provided Parsonage or Church Provided Allowance for Rental or Parsonage for either the taxpayer or spouse and click Continue
Enter the total housing and/or utility allowance and the actual housing and utility expense (enter the fair rental value of the parsonage if it was provided by the church).
The housing allowance will transfer to the Self-Employment Tax Adjustment Worksheet
The excess housing allowance will transfer to Form 1040, Line 7 as wages.
Refer to IRS Publication 517Social Security and Other Information for Members of the Clergy and Religious Workers for additional information.
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