How do I get Turbo Tax to give the housing allowance deduction allowed for retired pastors?

[daniel_bohorquez]

I found the formula for housing allowance allowed to be Monthly Gross Inc x 28%Then that total should be subtracted from Gross distribution in box 1 But Turbo Tax is not doing that

[DianeW777]

Yes, this is a common occurrence for retired clergy.

The IRS allows a housing allowance to retired ministers to the extent the recipient can justify the amount. Should you receive more than you can justify, the excess should be considered taxable.

You may include this statement with an electronically filed return using the instructions below.

To access the entry fields for the 1099-R:

1. TurboTax Online/Mobile or TurboTax Desktop use the link below:
   1. Where do I enter my 1099-R?
2. The program will proceed with the interview questions for you to enter or review the appropriate information. Enter the data from the 1099-R 

If Box 2b is not checked, please enter the 1099-R exactly as it appears on the form. This will cause the full amount to show as taxable. You will make your adjustment in Other Income, following the instructions below:

1. Open your Federal return and choose Wages & Income or Income and Expenses
2. Scroll down to Less Common Income 
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other reportable income, and Start/Revisit
5. Select Yes and you will be prompted to enter Description and amount. Enter the description "Retired Minister Housing Allowance," and enter the amount as a negative number (-5000).   

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.