I am a retired minister and have a housing allowance. I must define how much of the housing allowance I used and pay taxes on the rest. Does this app allow for that?

[LindaS5247]

Yes, TurboTax allows you to properly enter your housing allowance for Ministers. 

You can exclude the rental value of a home (plus utilities) furnished to you by your church as a part of your pay for your services, or the part of your pension that was designated as your rental allowance, from your gross income. 

Any allowance in excess of this amount is considered taxable income.

To enter your form 1099-R with housing allowance in TurboTax:

1. Click on search at the top right of your screen
2. Type "1099-R" in the search bar
3. Click on "Jump to 1099-R"
4. Select "I'll type it myself"
5. Follow the screen to "Enter (Your Name) 1099-R"
6. Complete the payer information
7. If box 2b is checked, enter the amount in Box 1 as it is shown. Subtract your housing allowance from the gross distribution in Box 1 and enter the result (or zero whichever is greater) in Box 2a. Taxable Amount, Check "Taxable Amount not Determined" in Box 2b and enter the rest of Form 1099-R as it is shown.
8. If Box 2b is not checked, enter your form 1099-R as it is shown:
9. Type "other reportable income" in the search bar and 
10. Select the link "Jump to other reportable income"
11. Answer "No" to "Did you receive any other wages" and "Continue"
12. Scroll to "Let's Work on any Miscellaneous Income" and select "Start" next to "Other Reportable Income"
13. Answer "Yes" to "Any Other Taxable Income?"
14. On the "Other Taxable Income" screen type "Clergy Housing Allowance" and 
15. Enter your documented housing expense with a negative number up to the amount that you reported in Box 2a.
16. This will remove the taxable portion from the distribution amount reported on your Form 1099-R.

Click here for "How do I enter a parsonage or housing allowance on a 1099-R?"

Click here for additional information on taxes and Ministers.