Retirement tax questions

Pardon my late response, and also please note that for reasons that have prevented me from updating this detailed write-up on Retired Clergy reporting the use of Pension Distributions as reportable Housing Allowance Expense, and thus excludable from reported income.  I do agree with the OPUS_17 in that a retired member of the clergy cannot commingle other pension distributions with the distribution received from the clerical pension nor can any other distribution outside the clerical pension distribution be reported as used for excludable Housing Allowance.

FROM PRIOR YEAR POSTS - Form numbers not updated for post 2018.

How to enter a RETIRED clergy housing allowance - Form 1099-R
The IRS allows a housing allowance to retired ministers to the extent the recipient can justify the amount. Should you receive more than you can justify, the excess should be considered taxable.
You may include this statement with an electronically filed return using the instructions below.
You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member. Be sure to include the amount received. You should keep documentation in your records to justify the amount of the housing allowance. This subject is covered in IRC Section 107, which you can mention in your statement. 
You should have received form 1099-R reporting the distribution. To access the entry fields for the 1099-R:
From within TurboTax, scroll down the Income Summary List
In Category Retirement Plans and Social Security  select  IRA, 401(K), Pension Plan Distributions (Form 1099-R).
Add a 1099-R to create a new copy of the form or Click Edit to review a form already created.
The program will proceed with the interview questions for you to enter or review the appropriate information. Enter the data from the 1099-R excepting Box 2 information - see next.
[Form 1040 Line 21 Adjustment if needed for 1099-R Box 2b or W-2 Allowance not deducted from Box 1]
If Box 2b  is checked [Taxable Amount Not Determined] then  right click the field for Box 2a and select "Add supporting details",
a.    make sure  the "NOT print box is not checked!
b.   In first line of description enter "Taxable amount reported in Box 2a  and in the    Amount enter the Box 2 amount.
c.   In the second line enter description "Deduction for Housing
 Allowance"  and in the Amount enter as a negative the allowance as an adjustment
d.   If the Housing Allowance exceeds the Pension received and a
       negative sum results, then reduce the Housing Allowance so that  the sum is zero.
If Box 2b  is NOT checked, then you should report as taxable for the 1099-R the amount reported and adjust it as follows.
a.  After exiting the 1099-R entry, return to the Income Summary list.
b.  Scroll down the list to "Less Common Income" and select
     "Miscellaneous Income""
c.  Select "Other Reportable Income"  - to the question 
      "Any Other Taxable Income"  answer "yes"
d.  Enter for Description = "Clergy Housing Allowance" and for
     amount - as a negative the housing allowance amount.
     This adjusting entry will appear as a negative amount on 
     Page 1 of Form 1040 line 21 with description showing.

Retired ministers can exclude from gross income the housing allowance furnished by the church as a part of the pension that was designated as a rental allowance.
Turbo Tax data entry is a little tricky as it does not separately calculate the exclusion or the taxable pension amount. The taxable difference of the pension and excluded housing allowance - will have to be manually entered in our 1099-R interview questions.
If your Form 1099-R has box 2b checked (taxable amount not determined)... To claim a housing allowance for retired clergy, enter a taxable amount in Box 2a of the 1099-R data entry screen in TurboTax. To compute the taxable amount, subtract the allowable housing expenses from the pension amount.  If the housing expenses exceed the pension, enter zero in Box 2a.
If the box 2b is not checked , please enter the 1099-R exactly as it is appears on the form. This will cause the full amount taxable. However, please make an adjustment in Other Income section:
1. Federal Taxes
2. Wages and Income
3.  Select Jump to Full list (I’ll choose what I work on if cd/download)
4. Scroll down to Less Common Income
5.  Select Miscellaneous Income
6. 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 clergy 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.

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s/ Scruffy Cumudgeon ® ™