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Here's how it works. The amount that qualifies as non-taxable housing allowance is the smaller of the amount spent, the amount designated (it must be designated prior to issuance) or the fair rental value of the parsonage/housing allowance. The church can report the housing allowance on the W-2. If it chooses to do this is should be listed in box 14. The amount of the housing allowance that is non-taxable cannot be used in the computation of the Child and Dependent Care Credit. Unless the pastor is exempt, the housing allowance is subject to SE tax. If the amount paid by the church for housing allowance is greater than the expenses or the fair rental value, that excess is also subject to income tax. It would be reported on line 7 of the 1040 along with his other wages. You would indicate the amount of the excess and indicate Excess Housing Allowance to the left of line 7. I don't know if I would call myself an expert, however, I only do clergy tax returns. I would be happy to try to help on this forum or you can e-mail me at [email protected]. Be advised that if you do e-mail me you will loose the benefit of peer review that this board makes available.

We are working on our 6th one since May. The IRS computers can't are unable to link the two. (poor programming) To prevent this in the future: Enter the entire amount of interest on the spouse whose SS# is on the 1098 on line 10 of Schedule A. There is a worksheet for line 10 with a section for entering reductions of mortgage interest. Put the other spouse's name and SS# on that line and enter the amount that will be claimed on the return of that spouse. This will reduce the interest claimed on the first spouse Schedule A. On the other spouse return, put the interest claimed on line 11 of Schedule A. There is a worksheet with a place for interest paid where a 1098 was not received for jointly owned mortgage interest. NOT LINE 10!. This will satisfy the IRS computers and prevent the CP2000 from being generated.

Well... I was going to wait and do all of the forum changes at once, but since I don't have any time frame for the software updates, I figured I should put the new forum up early.   I'll likely make changes later, I just put this together quickly to have something available.  

I would just add a new asset called "kitchen improvements" and I believe the standard life for residential rentals would apply.

Elvis has left the building

Is the notice coming to the spouse whose name was not on the Form 1098. If so, did you report it on line 11 as instructed, and not on line 10, and did you indicate and supply the attachment to document the interest?

Man oh man oh MAN is that correct, Eric!!!

Nobody wants a club full of flatulating mathematicians. 

I have a salad list too....MST, EA, BS, CFO....I can make up more if you want. Why would you doubt yourself Rita when a MAN with a Salad list of letters says something. When have you ever listened to what a man says. You got it right. Tom Hollister, CA

I never go anywhere but the general chat. Most of the posters like to post links and I don't click on them, regardless of how neat they sound. I think I went to the political forum 2 times total. I like most of the people on this board, and I have met a couple of them. I think the "NT" in front of the post has worked well and keeping the political attacks off this board has worked well. I am for whatever you want to do Eric. It is all good to me. But I will pretty much stay right here in General Chat. But whatever you do, keep this board. It is my lifesaver at times. And let us know if we are not contributing enough. I hit the donate button once a year, but if that is not enough, let me know. I will be happy to contribute more. I Love You Man! I have a bromance for you. Just don't tell my wife. Tom Hollister, CA

Too much sun definitely causes skin cancer. I used to ride my bicycle several hours in the sun frequently and developed several skin cancers, some of which required surgery to remove. My last visit to the dermatologist was over a year ago, and, as George H W Bush might say, "read my lips no new skin cancers."

Very little in the way of political beliefs would make me dislike a person, even if I totally disagreed with them. I am conservative on most issues, but I don't dislike a person just because he is a liberal (unless he is an elected official).

Actually, he is. I'm not saying I'm a better tax professional than he is, but I'm a better tax professional than he is.

My parents bought me and my brother a horse. No helmet, no lessons, an old english saddle, no restrictions, no supervison. We fell off so many times I can't even count. We loved that horse! We made it! Now I have five!