From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Clergy and earned income credit
Discussion Forum Index --> Tax Questions --> Clergy and earned income credit
Jasito96 (talk|edits) said:
| 1 April 2008
|
| I have a client that has filed the form 4136 to be exempt from SE taxes. Does clergy income not subject to SE taxes qualify as earned income for the EIC?
|
Taxestaxes (talk|edits) said:
| 1 April 2008
|
| Only self-employment earnings and taxable wages need be included in the calculation. see pub 596
|
Taxwizard (talk|edits) said:
| 2 April 2008
|
| Jas, the answer is yes. The housing allowance will not qualify, but his taxable wages shown in box 1 of his w-2 will qualify.
|
MEMCPA (talk|edits) said:
| 2 April 2008
|
| Exemption from the SE tax coupled with the housing allowance can produce some odd results in computing EIC. The IRS worksheets include the housing allowance if SE tax but exclude the housing allowance if exempt from SE.
|
To join in on this discussion, you must first
log in.
