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Housing allowance deduction from my pension earnings

I receive a pension form 1099-R for my retired clergy pension earnings. My earnings are designated housing.  how do I subtract my actual housing expenses from the amount received on my tax form?

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3 Replies
JohnW152
Employee Tax Expert

Housing allowance deduction from my pension earnings

See the TurboTax Help article How do I enter a parsonage or housing allowance on a 1099-R?.

 

The article provides step-by-step guidance on how to remove the nontaxable portion from the distribution reported on your Form 1099-R.

Housing allowance deduction from my pension earnings

This helped tremendously. However, I filed my taxes by simply calculating the deduction on paper. Do I need to amend the return with the information on a form?

DaveF1006
Employee Tax Expert

Housing allowance deduction from my pension earnings

Here are the list of steps to take to exclude your housing allowance reported on a 1099R.

 

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

  1. Enter the amount in box 1 as it's shown on your 1099-R.
  2. Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
  3. Check Taxable amount not determined box is checked in the box 2b section.
  4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

  1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
  2. Search for other reportable income and then select the Jump to link in the search results.
  3. Answer No to Did you receive any other wages? and select Continue.
  4. Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
  5. Answer Yes to Any Other Taxable Income?
  6. On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

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