1040-US: Entering unused housing allowance income

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IRS filing deadline update

The IRS MeF system is now processing returns, and the filing deadline has been extended to 11:59 PM on Wednesday, April 18, 2018. For the latest details, see UltraTax CS alerts and notices.

Question

How do I enter unused housing allowance income?

Answer

Per IRS Publication 517, when housing allowances are not included on Form W-2, Box 1, and amounts received were greater than actual costs, report the excess on Form 1040, line 7.

Enter the total housing allowance received in Screen W2, Box 14, or if not reported on Form W-2, enter the total in the Parsonage or Allowance Housing Information section in Screen Clergy, located in the Taxes folder. Amounts entered in the Fair rental value of parsonage provided by church field transfer to Clergy Worksheet 1, line 3a. Amounts entered in the Parsonage allowance (Force) field transfer to Clergy Worksheet 1, line 4a. Excess housing allowance is calculated on Clergy Worksheet 1, line 4i. Excess utilities allowance is calculated on Clergy Worksheet 1, line 3e. Excess allowance is transferred to Form 1040, line 7.

Related topic: Minister wages and church employee income FAQs (1040)

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