OK.
Clarify please:
- 1099-R, BOX 1 Goss Distribution amount is ALL designated as Housing Allowance.
- BOX 2a Taxable amount is 0.00
I get that is why no taxable amount is passed to 5b on the 1040.
In the instructions on Pub 517, a taxable/non taxable income calculation percentage is derived. The Pension amount is INCLUDED in this % calculation in every example I can find.
This is a good example, starting on p106: https://www.cpg.org/globalassets/documents/publications/tax-2023-clergy-tax-return-preparation-guide...
First issue: Yes, there is additional ministerial income for a schedule C.
Second issue: No additional Housing allowance has been designated outside of this Pension Amount.
When you state "Stop there. You don't make any further adjustments anywhere." :
- Do you agree or disagree with including the Pension Designated Housing Allowance in the % method on the above referenced example?
- Calculating the % reduces (adjusts) the allowable deductions on Schedule C. 50% in my case.
- Turbotax Schedule C also has a box for the housing allowance, which is what triggers SE Income.
- The Pension element is not addressed there, just "Plug in your Housing Allowance".
- This is where I have removed that value under the "It's non-taxable by definition" assumption.
Admittedly, this is a rare, but not totally unique situation that the instructions (Turbotax OR the IRS) don't cover well.
