My 1099-R is to go towards clergy housing allowance. I followed the steps but it adds it as taxable income and not housing allowance. What now?

My expenses were larger than the Box 1, so I entered "0". 2b was checked on the 1099-r, and #7 is in Box 7. This is what your guide says that I followed:

If Box 2b is checked

Subtract your documented housing expenses from the gross distribution amount in Box 1.
Enter the result in Box 2a, Taxable Amount, if it's a positive number.

If the result is a negative number or 0, enter 0 in Box 2a.

Can find any other place to list the housing allowance.

Thanks for all your help.

1331

Level 2

Jun 6, 2019 12:16:45 PM

You can enter the same amount in Box 2a as the taxable amount and then subtract the minister's housing allowance on Line 21. Here's how to do the Line 21 entry:

In your open Federal return, select Wages & Income
Scroll down to Less Common Income and Show more
Start/Revisit Miscellaneous Income and choose Other reportable income
Say Yes to continue to the screen "Other Taxable Income". Enter the description "Minister's Housing Allowance" and the amount as a negative number.

This will enter your housing allowance on Line 21 as a subtraction from income, thereby resolving your issue.

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My 1099-R is to go towards clergy housing allowance. I followed the steps but it adds it as taxable income and not housing allowance. What now?