@Judy36 First of all, do not try to add a 0 on your own or make any other adjustmentw. Report the 1099R exactly the way the hard copy reads. Include the full amount as taxable in Box 2B.
Next perform the steps as MargaretL suggests. Let me list these for you,
- Federal Taxes
- Wages and Income
- Scroll down to Less Common Income
- Select Miscellaneous Income
- Select Other reportable income, select ‘yes’ and you will be prompted to enter Description and amount. Please be sure to indicate that the income is your retired housing allowance, and enter the amount as a negative number. At this point, the form 1040 will show full pension as taxable, but a negative adjustment on line 21 for housing allowance amount. When you record this negative adjustment, enter this with a - sign in front of the number.
- In this manner, the pension amount shows taxable but then the full amount is offset by the negative adjustment.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
