@rickpeggysmith The income cannot be adjusted in TurboTax because it does not qualify to be tax-free. I'm sorry that the link in my post above is currently not working. But you can also refer to IRS Publication 970, Page 5 (the 2017 version is not available yet). Here it clearly explains the rules. It's similar to a firefighter who is required to live at the station, but his income is still taxable. Because your son is required to live on campus, there may be certain deductions allowed on Schedule A. He can deduct any expense he had to pay out of pocket and was not reimbursed by his employer. These expenses must be ordinary and necessary to perform his job duties.
