tammie
Level 4

New client has moved to VA from CA where he was a minister at a church who provided a W-2 showing housing allowance AND SS and MC tax withheld.  As a minister the church should not have withheld SS and MC tax.  The church does not want to do a corrected W-2 to move the SS & MC tax to federal income tax so he gets credit for it and they do not want to return the withholding to him because again that requires a corrected W-2.  Plus an correction of the W-2 also requires amended 941's.  Proseries will not allow housing allowance AND SS & MC withholding.  Does anyone have any suggestions as to how we enter that W-2 and prepare his tax returns?  Thank you for any replies.

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Terry53029
Level 15
Level 15

I would just put his housing allowance on schedule 1 as adjustment to income.

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