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If you are using TurboTax Desktop, you can go into Forms and change the answer to "Yes".    To do so, please follow the instructions below: Click on Forms on the top right of your screen. Click on 1040/1040SR Wks in the left hand column.  Scroll down to Digital Assets and click Yes.

Thanks Dave. Two additional questions.  He should file his MA state return as a "non-resident", correct?  The stipend was paid as Form 1099-Misc.  As such, he cannot deduct items such as tolls while driving to work, correct? He is taking the standard deduction on his federal return since he doesn't have any itemized deductions, not sure if that is different for MA state return.  

@jeanninecary wrote: @Opus 17  My husband is a Prison Chaplain employed by the State. They gave him a letter to elect whether to have them deduct the allowance, BUT he did not complete it and turn it in to them; S.S. and Medicare were taken out of his gross pay and there's no allowance shown on his W-2. Everything I've read suggests that in order to take this allowance the amount has to have been determined prior to being paid. However, he is being told that we can still claim this allowance. Do you know if this is true, and if so how? Do I put the amount in Other Deductions? Your understanding is correct, whatever advice he is being given is wrong.  A clergy housing allowance must be declared in advance and in writing.  There is no legal or tax method or ability to deduct those expenses from the wages once paid.   I would certainly look into getting that form back and making the election going forward.  I can't really think of any downside to having part of his salary declared as a housing allowance.  

Why are you looking at some whacko web site and using it for reliable federal income tax information?   You do NOT need to complete Schedule J UNLESS the trust was:   Previously treated at any time as a foreign trust (unless an exception is provided in future regulations); or Created before March 1, 1984, unless that trust would not be aggregated with other trusts under the rules of section 643(f) if that section applied to the trust. See https://www.irs.gov/instructions/i1041#en_US_2024_publink100052920