It depends. As indicated by @Opus 17 you are not allowed to use expenses that are associated with the housing allowance portion. This means you must make a manual adjustment before you make the entry for the expenses and his instruction is posted here again for your review:
- You must reduce your expense deduction according to the Deason rule. This means you can't fully deduct your expenses if some part of your compensation is a non-taxable housing allowance.
- For example, suppose your W-2 box 1 wages are $20,000 and your housing allowance is $30,000. Because only 40% ($20,000/$50,000) of your total compensation is taxable, you can only list 40% of your expenses as deductible expenses. You must make this calculation yourself, the program does not do it for you.
- Expense will reduce your overall income and could increase your refund.
Review your entries and calculations to make sure you have made the appropriate entries.
@KL47
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