My husband is a minister and his excess housing allowance is not being added to our total income for some reason, what do I need to do to correct this.

This is exactly what I have done 4 times now with the same results.  The unused money that is designated for housing allowance is not being added into total income.  I have never had this problem with Turbo Tax before.  Is it possible that there is some sort of glitch in the software and that is why it isn't picking it up?

Yes, there is a bug. See below.

For 2018, you need to select wages only.  Turbo Tax Home and Business is different and if you Select Housing and Wages, it doubles the Housing Allowance on 2018 Schedule SE Adjustments Part II 5b, making your income Part II line 8 about 1.5 times higher than it should be.  

I think you may need to enter a Line 21 adjustment for the excess housing allowance. But the problem could also lie in Step 5, below. The housing allowance has always been complicated, and mistakes are easy to make anywhere along the way. Please review all of these steps. They should lead you to the correct result.

If you're not already on the W-2 entry screen, open your return. (To do this, sign in to TurboTax and click the orange Take me to my return button.) Then search for "W-2" or "W2" (lower-case also works) and click the "Jump to" link in the search results. Follow the instructions to import or manually enter your W-2.

1. When you get to Box 14, enter CLERGY HOUSING, followed by the amount, and then select the last item in the drop-down which is Other - not on the list above. Click Continue.
2. If you get additional screens, answer those questions.
3. When you reach the Do any of these uncommon situations apply to this W-2? screen, check the 4th box for Religious employment, then click Continue.
4. On the following screen, select You earned this income for clergy employment and click Continue.
5. Enter your allowance on the Tell Us About your Clergy Housing screen. For Qualifying Expenses, enter the lesser of:

• Your qualified housing expenses;
• The fair rental value of your housing expenses; or
• Your housing or parsonage allowance. (Housing allowance – qualifying expenses = taxable income)

You will now be on the Here's your W-2 info screen. Click Edit to view your W-2 information. If the Box 1 amount hasn't been adjusted for your housing allowance, enter a Line 21 adjustment to income. Here's how:

1. Search for "other reportable income" and then click the "Jump to" link in the search results.
2. Answer No to Did you receive any other wages? and click Continue.
3. Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and click Start next to Other reportable income.
4. Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter it as a negative number (precede it with a minus sign, e.g. -10,000).

Related Information:

• Is a parsonage or housing allowance deductible?