Retirement tax questions
It depends. If the retirement is for housing allowance only, then you can use the following steps to remove the income from your return if you can show you spent that much on the cost of your housing.
Other Miscellaneous Income:
- Sign into your TurboTax Online account
- Go to Tax Home (left panel) Wages and Income section
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (Retired Clergy Housing Allowance) and the amount as a negative figure (-100)
At this point, the form 1040 will show your full pension as taxable, but the negative adjustment on Schedule 1, line 8, which carried to Form 1040, line 8, will remove it from taxation. Remember you can only enter an amount equal to your housing expense if it is less than your actual amount received.
