I am a pastor. I have a housing allowance of $30,000. My actual housing expenses were $59,927 (I had some major repairs this year). On line 1 a (2) of the Tax and Interest Deduction Worksheet, TurboTax calculates "Nontaxable income entered elsewhere on return." TurboTax entered $59,927. This appears to be the wrong value. The value for this field should be MINIMUM(Housing Allowance, Actual Housing Expenses). Instead, it is using MAXIMUM.
For the Housing Allowance, any part that is not used for actual housing expenses is considered taxable. Additionally, the most that can be written off as non-taxable is the Housing Allowance, regardless of whether actual expenses exceeded the Housing Allowance. Thus, it appears this field is being calculated incorrectly by TurboTax.
In looking at past tax returns, I noticed that this value was correctly calculated in 2017, but has been incorrectly calculated in subsequent years. Has anyone else noticed this?
