FRV of Clergy use of Parsonage

[drbdrb]

Clergy is provided with use of a parsonage with fair rental value (FRV) for the year of $12K. The amount is subject to SE tax, but not income tax. On his FW-2 input screen, Part II lines D, E, and F address housing allowance, but line D seems specific to a "designated housing allowance" (and not FRV for use of parsonage) and since this clergy has no qualifying housing expenses, line E would be zero. Where do I enter FRV for use of the parsonage?  I can force the correct treatment by entering $12K on lines D and E, but that doesn't seem the appropriate way to handle. Appreciate any thoughts/direction!

[drbdrb]

I'm going to take a shot at answering my own question. It appears that FRV of the use of a parsonage is best entered directly on the SE Adj Worksheet, Part II Line 6 (Other SE confirm profit or (loss)), which also allows for entry of a description in the Supporting Statement. 

[IntuitAmyC2]

We know the IRS rules and the lower of rule:

• The amount officially designated  -cash goes to line D
• Your actual housing expenses for the year (mortgage, utilities, repairs, etc.) -For more, see here.
• The Fair Rental Value (FRV) of your home (fully furnished, including utilities) - parsonage goes to line F

The software entry does require the D and F entry as a logic check not to include in wages but carry to SE. You have correctly determined two ways to handle the situation. 

My only caution in using the SE Adj Worksheet is the program is designed to handle the Deason rule from the w2 side. When you go into the SE, you may need to make any required adjustments. Well, you know to double check either way. Great job!

[drbdrb]

Amy, Thank you. At least in ProSeries Basic, there isn't a field in Part II line F for entry of the FRV for use of a parsonage, which had me going directly to Sch. SE.