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 Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Taxes in the Federal Quick Q&A Topics menu 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 1 as wages.
Refer to IRS Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers for additional information.