Disability compensation may or may not be taxable. It sounds like it was misreported as parsonage allowance, which normally is not taxable, but you should report it by reference to what it was even if it was reported wrong.
Disability compensation is typically taxable if provided by your employer as opposed to from an insurance company to whom you have paid premiums for the coverage.
To report the benefits as taxable, you can enter it as Other Income by following these steps in TurboTax:
Go to the Income and Expenses section of TurboTax
- Choose Less Common Income
- Choose Miscellaneous Income, 1099-A, 1099-C
- Choose Other reportable Income
Enter a description for the income and the amount.
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