Do I pay a SE tax on the total amt rec'd?

by Ann Fairchild
(Myrtle Beach, SC)

The SE tax that we will be required to pay, will that be like 15% of the total amount rec'd for housing regardless of the monies spent on housing?

vickey's reply

You have to report the lesser of the following amounts on your SE schedule:


  • The amount actually spent on eligible housing expenses.
  • The fair market rental value plus furnishings and utilities.
  • The amount officially designated in advance as housing allowance.
You will pay 15% on that amount.

2Comments

Reporting Housing Allowance on Schedule SE

VVickey

Yes, Kris, you are correct.

Clarification

KKris

I always have put the whole amount of my housing allowance on schedule SE, line f.

I never spend the entire amount. Should I be putting the actual amount spent on that line and then claim the remaining as other income?