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    Clergy received W-2 for $35K and has $34k worth of housing allowance so net income should be $1k. But return shows entire $35K as taxable income. What am I doing wrong?

    dbilyou
    Level 1
     
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    6 Comments 6
    Accountant-Man
    Level 13

    Why does the W2 show 35? Shouldn't it show 1?

    ** I'm still a champion... of the world! Even without The Lounge.
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    dbilyou
    Level 1

    Maybe??  I thought that putting the $34 in Part II D and checking the box in F4 (he has the form 4361)  in the W-2 Worksheet would offset the income but it doesn't change the return at all.

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    BobKamman
    Level 15

    How much total was he paid?  35K or 69K ?  Does he have another source of income, or does he feed himself and family for $20 a week?

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    dbilyou
    Level 1

    he was paid $35.  He and his wife both have other earned income

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    BobKamman
    Level 15

    35K is in Box 1 of the W-2?  It shouldn't be. 

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    wjgutcpa
    Level 4

    Was a parsonage supplied by the church or clergy? 

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