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Clergy E-file and "Clergy Income Statement" attached

by Lynn
(Florida)

We have used tax cut to do our taxes for several years this year it states that a "Clergy Income Statement" explaining housing allowance must be attached.

However, we do not file/use the 2106 (Unreimbursed Business Expenses) nor do we have we completed a 4361. We have a housing allowance that is included in box 14 on the W2 and is not subject to income tax but is included on our Schedule SE. Is this form necessary or is it a software glitch with tax cut?

Answer

You are the third person today to ask this question and some are using Turbo Tax. I do not know why they are requiring a statement if you are not deducting any unreimbursed expenses off your self-employment earnings. See this post for some examples of such a statement.

If I was you I would either call the IRS or call that 800 number TaxCut/H&R Block Software provides.

You may have to just mail it in if TaxCut will not allow you to e-file without that statement.


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Comments for Clergy E-file and "Clergy Income Statement" attached

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Mar 30, 2011
 Same here
by: Anonymous

Yep, I'm having the exact same problem. I'm just going to mail it in, but it's annoying. I've always been able to efile before, but this year Taxcut isn't letting me do it because of my housing allowance. I wonder if TurboTax is doing the same thing?
Mar 30, 2011
 exemptions
by: Anonymous

According to this website:
http://www.journalofaccountancy.com/Web/20113999.htm
(almost last line) Returns - the IRS currently does not accept electronically (as noted above) or returns with attachments or required documentation that the IRS cannot accept electronically.

How difficult could that be to insert a text file into an e-file? We insert text into fields in the forms, now. Pastors need one page worth, at most, to report housing allowance/non-deductible expenses for Sched C and SE.
Feb 20, 2014
 You can e-file 2013 taxes with House Allowance - Use TurboTax
by: Fr. Bob

I ran into the same problem in tax year 2010.
All of a sudden, TaxCut (now H&R Block Tax Cut) let me put ALL my data into their software...only to find out that when I got to the Review/Check accuracy step, because I was claiming a Housing Allowance, THEY said I could not file electronically and would have to print out my return, sign it, attach the Housing Allowance statement from my church and THEN MAIL IN MY RETURN.

I fumed a bit, got online and found TURBOTAX (Intuit) and I have used it for the last 4 tax years, including 2013 and e-filed myself right to the IRS and my state taxing authority.

I really did like TaxCut software, and had used it for 5-6 years prior, even a year or 2 claiming Housing Allowance, but H&R Block decided to make that unhelpful change requiring clergy in my position to MAIL IT IN.

I highly recommend TURBOTAX and do so with all my colleagues when the conversation comes around to tax filing.

Blessings,
Fr. Bob+
Feb 06, 2015
 Turbo Tax E-File with Housing Allowance Worksheet
by: Anonymous

If you electronically file it with Turbo Tax, how do you attach the housing allowance worksheet?

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Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



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