Can I add an exculsionary note to my return in tubotax?

[jkumpire]

Hello!

I have an exclusion to income under Section 107 of the IRS code as a Housing allowance exclusion. It is recommended that I should add an explanatory note to my return about the exclusion of income. Can i do this in turbo tax? How can I add the note?

thanks

jkumpire

[JohnB5677]

No, but there may be a good reason..

If you do choose to add an attachment, you must print the return and mail it.

The IRS does not look for anything other than required documents on an E-filed return.

• A non required document would be ignored.
• The people in the section that input returns do just that. they don't look for anything else.
• A computer evaluates the return.  The attachment would not come into play.
• Once selected for audit, many returns are audited based on computer prints of the return. 
• The original return is left in the Federal Records Center.  Your attachment isn't seen to the auditor.
• If the IRS has a concern, they will notify you in writing.
  • The IRS never calls, texts or Emails when requesting information.

Please contact us again with any additional questions or to provide some additional details.

[jkumpire]

Thank you for the answer.

However, I have not been able to reduce the amount on line 5 of my 1040 form to reflect this exclusion of income. any idea on how to change that?

Thanks!

[RobertB4444]

You need to change the number that you are entering on your W2 form.  Then you need to attach the letter to your 1040.

You should know that this isn't how the IRS wants this to be done.  If you have an exclusion from your income then it should not be reported on your W2.  You should contact the employer who issued you the W2 and request that they correct the form so that it doesn't show the income that you don't think you should be pay taxes on.  Altering that form and those amounts so that you don't pay taxes generally just causes the IRS to send you letters.

A housing allowance can be only partially taxable to clergy.  In that instance the housing allowance is entered in box 14 and then reported only for self employment tax purposes.  So clergy does not have to pay income tax on the housing allowance but they do have to pay social security and medicare on it.  

@jkumpire 

[jkumpire]

Hi RobertB4444,

I appreciate the response.

However, this issue does not involve a W-2. It involves a 1099-R form. I was able to adjust the taxable amount on the 1099-R form for a housing allowance exclusion and got the correct information on the 1040 form. I am going to have to send the forms in by mail with a note attached. 

Thank you for your interest!

jkumpire