The housing allowance exclusion data entry depends if box 2b on your 1099-R is checked or not, please read below:
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
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:
- 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.
