How do I report housing allowance income on FreeTaxUSA?

chester_lives_1987 Member Newcomer

The software asked me if I requested a social security tax exemption, which I did not, so I have to pay both federal tax and social security tax on my salary. However, I have an additional housing allowance, which is not subject to federal tax, but it is subject to social security tax.

I don't see a way to report this. How do I do so, or do I need to use different tax software?


  • Henry
    Henry FreeTaxUSA Agent

    Hello chester_lives_1987! Housing allowance information is gathered in two places, depending on how you get paid.

    -If you receive a W-2, enter it by selecting Income > Common Income > Wages from the menu. If you have clergy income (meaning there is zero SS and zero Medicare tax on the W-2), then the follow-up screens will ask about your parsonage or housing allowance. If you answer YES to "Are you a minister or clergy member?", answer NO to "Did you file Form 4361…?" and answer YES to "Did your church provide you with a parsonage or housing allowance?", then we will gather more information about your housing allowance on the subsequent screen.

    -If you are self-employed, you can enter your information by selecting Income > Business Income (Schedule C) from the menu. You can enter any income and expenses you have related to your clergy income there. In the Less Common Expenses section of the business income screens, we will ask if you are a minister or clergy member and gather your housing allowance and self-employment taxes information.