Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
Parsonage and EIC



Post new topic   Reply to topic View latest: 24h 48h 72h

amother


 

Post Tue, Jul 08 2014, 7:35 am
For the third year, there are issues with my tax return. My husband gets parsonage and pays self-employment tax on it, so even though it's not earned income, it counts towards the EIC, as per the IRS guidelines. But I think the computers look at the earned income and it triggers an error. Does anyone here have any helpful ideas for me to avoid this hassle next year?

thanks
Back to top

kb




 
 
    
 

Post Tue, Jul 08 2014, 7:46 am
use an accountant?
Back to top

amother


 

Post Tue, Jul 08 2014, 7:50 am
I might have to do that Sad
the question is why is this happening.
I asked an expert from Turbo Tax and he said not to e-file, to mail in my return with an explanatory note. I was just wondering if my situation is that uncommon, if I was doing something wrong somewhere, or f this hassle happens to other people who have parsonage and qualify for the EIC.
Back to top

savta718




 
 
    
 

Post Tue, Jul 08 2014, 7:56 am
Is the yeshiva your husband is working for using a payroll service? If yes, then they should be able to answer your questions.
Back to top

amother


 

Post Tue, Jul 08 2014, 8:46 am
No, they don't.
Back to top

amother


 

Post Tue, Jul 08 2014, 5:09 pm
Is there no one else on here who gets parsonage?
Back to top

boysrus




 
 
    
 

Post Tue, Jul 08 2014, 5:19 pm
yes, we get parsonage, but our tax returns are done by an accountant and he deals with any Earned income credit problems, so I cant advise you, except to say, use an accountant, preverably a frum one who is experienced at dealing with people who get parsonage.
Back to top

amother


 

Post Tue, Jul 08 2014, 6:57 pm
amother wrote:
For the third year, there are issues with my tax return. My husband gets parsonage and pays self-employment tax on it, so even though it's not earned income, it counts towards the EIC, as per the IRS guidelines. But I think the computers look at the earned income and it triggers an error. Does anyone here have any helpful ideas for me to avoid this hassle next year?

thanks


Sorry to be anon. I think you need to try a more powerful software. The parsonage from schedule SE should carry forward to the EIC worksheet that calculates earned income and then it carries forward to make the proper calculations. Try taxslayer commercial software online over regular box software.
Back to top

amother


 

Post Tue, Jul 08 2014, 7:00 pm
OP here - sorry if I was unclear. I use Turbo Tax and the calculations carried over correctly. The issue is with the IRS sending me notices that my EIC is incorrect, and then reversing that and telling me I was correct to begin with, after a whole hassle. That's what has me wondering if I am doing something wrong, or if it is normal for the IRS not to know how to handle the parsonage/EIC combination.
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Parsonage and snaps ny
by amother
5 Thu, Jul 20 2023, 3:06 pm View last post
Parsonage count for CHIP
by amother
1 Wed, Apr 26 2023, 7:18 pm View last post