This article will assist you with entering minister income, expenses, and housing allowances in the Individual module of Intuit ProConnect.
Follow these steps to enter minister wages:
- Open the client return.
- From the left of the screen, select Income and choose Wages, Salaries, Tips (W-2).
- Enter information from the W-2, including all income and applicable withholding.
- Scroll down to the Box 14 section.
- Enter the applicable amount in the Ministers housing allowance (SE only) field.
- From the top of the screen, select Less Common Scenarios.
- Under the Other Information section, locate the Miscellaneous Information section.
- Enter a 1 in Minister wages: 1=subject to SE tax, 2=not subject to SE tax.
Follow these steps to enter a minister's Schedule C:
Don't enter amounts in the fields from steps 9-11 that have already been entered in the Wages, Salaries, Tips (W-2) screen.
- From the left, of the screen, select Income and choose Business Income (Sch C).
- Scroll down to the Other Information section.
- Check the box labeled Minister's Schedule C.
- From the top of the screen, select Income Statement.
- Enter any applicable fields with information about income and expenses.
- From the left of the screen, select Taxes and choose Other Taxes.
- Select Self-Employment Tax (Schedule SE).
- Scroll down to the Self-Employment Tax (Schedule SE) section.
- Enter the number of minister's Form 2106, if applicable.
- Under the Minister's Parsonage Allowance subsection, enter the Parsonage allowance received - housing.
- If the actual amount of the housing expenses are less, enter that amount in Actual Housing Expenses (If different from amount received).
- The minister's parsonage is nontaxable income, but is included on Schedule SE and subjected to the SE tax.
According to IRS Pub 517, for members of the clergy and religious workers, if the minister has nontaxable parsonage, a portion of the ministers Schedule C or 2106 expenses should be allocated to this nontaxable parsonage and disallowed as an expense on Schedule C or 2106.
Follow these steps to enter minister's expenses on Form 2106:
- From the left of the screen, select Deductions and choose Vehicle/Emp. Bus. Expense (2106).
- Under Vehicle / Employee Business Expense (2106), enter the applicable Form (Click on arrow to select from list).
- Enter the Activity name or number (Click on arrow to select from list).
- Check the box labeled Minister's expenses.
- When this box is checked and the Form is set to either Form 2106 or Form 2106/Schedule SE, the application will allocate a portion of the expenses entered in this screen to a ministers nontaxable parsonage.
- Enter any applicable expenses.
Follow these steps to enter the minister's business use of home:
- From the left of the screen, select Deductions and choose Business Use of Home (8829).
- Use the steps in this article to enter business use of home expenses, if you haven't already.
- From the left of the screen, select Taxes and choose Other Taxes.
- Select Self-Employment Tax (Schedule SE).
- Enter the number of minister's home office.
- When this entry is made, and the Form entered in Business Use of Home is set to Schedule A, a portion of the expenses computed on Form 8829 will be allocated to nontaxable parsonage and disallowed.
