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:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Taxes in the Federal Quick Q&A Topics menu to expand, then click Self-employment tax adjustments.
- Continue to the screen titled Self-Employment Tax - Housing Allowance, then click Yes.
- Select either church provided parsonage or church provided allowance for rental or parsonage for either the taxpayer or spouse, then click Continue.
- Enter the total housing and/or utility allowance or the fair rental value of the parsonage (FRV of parsonage and/or Utility allowance) and the actual housing and utility expense (Actual utility expenses).
- The housing allowance will transfer to the Self-Employment Tax Adjustment Worksheet and 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.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.