All my income from the 1099R's were from 403b accounts. I want to designate some for housing

[2revs77]

I am a clergy person

[SharonD007]

As a retired credentialed minister, the IRS allows you to deduct a housing allowance from distributions from your 403(b) retirement account. You will be able to exclude the part of your retirement designated as your rental allowance or the rental value of your home including utilities that is furnished to you by your church as a part of your pay for past services. You still need to adhere to the housing allowance rules. Please see the IRS Frequently Asked Questions for Ministers who receive a housing allowance and IRS Topic #417 Earnings for Clergy for more information regarding rules.

Check your 1099-R Box 2b to determine which way you will enter your housing allowance into TurboTax.

If Box 2b of your 1099-R is checked by taxable amount not determined, you will need to calculate the taxable portion by deducting the allowable housing expenses from Box 1.

1. Launch TurboTax.
2. Select Federal, then type in 1099-R in the search box at the top by the magnify glass.
3. Select Jump to 1099-r.
4. Answer the questions to enter your 1099-R, stop at Box 2a to calculate the taxable amount.
5. Deduct your allowable housing expenses from the amount in Box 1 and enter that amount in Box 2a. If your housing expenses are more than the amount in Box 1, enter zero in Box 2a.
6. Continue answering the questions until you finish,

If Box 2b of your 1099-R is not checked, you will enter your 1099-R exactly as it and make an adjustment for your allowable housing expenses.

1. Launch TurboTax.
2. Select Federal, then type in 1099-R in the search box at the top by the magnify glass.
3. Select Jump to 1099-r.
4. Answer the questions to enter your 1099-R. Once you finish answering the questions and are back at the Wages & Income screen, scroll down to Less Common Income and select Miscellaneous Income.
5. Scroll down to Other Reportable Income and select Start
6. Answer Yes to Did you receive any other taxable income? 
7. Type in Clergy Housing Allowance under the description.
8. Enter your allowable housing expenses as a negative number (use a minus sign in front of the number). This will remove your housing expenses from your taxable income.

For additional information, please review the TurboTax article Misters and Taxes.

[Opus 17]

I don't believe you can designate your own retirement funds as a housing allowance.  The designation must be made in advance and in writing by your church, your denomination, or someone else who has appropriate authority now that you are retired.

@ScruffyCurmudgeon Can you comment?

I rely on these guides, you may need to pay to download or your denomination may have a membership. 

https://www.ecfa.org/TaxGuides/Default.aspx

What I am reading now seems to indicate that the denomination can make a blanket determination that the retirement account constitutes a housing allowance, I suggest you confirm that in writing.  Any excess withdrawal more than your qualified housing expenses must be added back to your taxable wages.  You are supposed to attach a written statement showing your calculations, but you can't attach statements if using Turbotax to e-file.  

Also, only a 403b sponsored by your denomination is eligible to be treated as a housing allowance.  Any other retirement funds are not eligible.  If you rolled the funds over to an IRA, they would no longer be eligible.

Pension payments, retirement allowances, or disability payments paid to a retired minister from an established plan are generally taxable as pension income. However, most denominations designate a housing allowance for retired ministers to compensate them for past services to local churches of the denomination, to the denomination itself, or in denominational administrative positions. The housing allowance designated relates only to payments from the denominationally-sponsored retirement program.

[ScruffyCurmudgeon]

Pardon my late response, and also please note that for reasons that have prevented me from updating this detailed write-up on Retired Clergy reporting the use of Pension Distributions as reportable Housing Allowance Expense, and thus excludable from reported income.  I do agree with the OPUS_17 in that a retired member of the clergy cannot commingle other pension distributions with the distribution received from the clerical pension nor can any other distribution outside the clerical pension distribution be reported as used for excludable Housing Allowance.

FROM PRIOR YEAR POSTS - Form numbers not updated for post 2018.

How to enter a RETIRED clergy housing allowance - Form 1099-R
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.
You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member. Be sure to include the amount received. You should keep documentation in your records to justify the amount of the housing allowance. This subject is covered in IRC Section 107, which you can mention in your statement. 
You should have received form 1099-R reporting the distribution. To access the entry fields for the 1099-R:
From within TurboTax, scroll down the Income Summary List
In Category Retirement Plans and Social Security  select  IRA, 401(K), Pension Plan Distributions (Form 1099-R).
Add a 1099-R to create a new copy of the form or Click Edit to review a form already created.
The program will proceed with the interview questions for you to enter or review the appropriate information. Enter the data from the 1099-R excepting Box 2 information - see next.
[Form 1040 Line 21 Adjustment if needed for 1099-R Box 2b or W-2 Allowance not deducted from Box 1]
If Box 2b  is checked [Taxable Amount Not Determined] then  right click the field for Box 2a and select "Add supporting details",
a.    make sure  the "NOT print box is not checked!
b.   In first line of description enter "Taxable amount reported in Box 2a  and in the    Amount enter the Box 2 amount.
c.   In the second line enter description "Deduction for Housing
 Allowance"  and in the Amount enter as a negative the allowance as an adjustment
d.   If the Housing Allowance exceeds the Pension received and a
       negative sum results, then reduce the Housing Allowance so that  the sum is zero.
If Box 2b  is NOT checked, then you should report as taxable for the 1099-R the amount reported and adjust it as follows.
a.  After exiting the 1099-R entry, return to the Income Summary list.
b.  Scroll down the list to "Less Common Income" and select
     "Miscellaneous Income""
c.  Select "Other Reportable Income"  - to the question 
      "Any Other Taxable Income"  answer "yes"
d.  Enter for Description = "Clergy Housing Allowance" and for
     amount - as a negative the housing allowance amount.
     This adjusting entry will appear as a negative amount on 
     Page 1 of Form 1040 line 21 with description showing.

Retired ministers can exclude from gross income the housing allowance furnished by the church as a part of the pension that was designated as a rental allowance.
Turbo Tax data entry is a little tricky as it does not separately calculate the exclusion or the taxable pension amount. The taxable difference of the pension and excluded housing allowance - will have to be manually entered in our 1099-R interview questions.
If your Form 1099-R has box 2b checked (taxable amount not determined)... To claim a housing allowance for retired clergy, enter a taxable amount in Box 2a of the 1099-R data entry screen in TurboTax. To compute the taxable amount, subtract the allowable housing expenses from the pension amount.  If the housing expenses exceed the pension, enter zero in Box 2a.
If the box 2b is not checked , please enter the 1099-R exactly as it is appears on the form. This will cause the full amount taxable. However, please make an adjustment in Other Income section:
1. Federal Taxes
2. Wages and Income
3.  Select Jump to Full list (I’ll choose what I work on if cd/download)
4. Scroll down to Less Common Income
5.  Select Miscellaneous Income
6. Select Other reportable income, select ‘yes’ and you will be prompted to enter Description and amount. Please be sure to indicate that the income is your retired clergy housing allowance, and enter the amount as a negative number.    At this point, the form 1040 will show full pension as taxable, but a negative adjustment on line 21 for housing allowance amount.

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s/ Scruffy Cumudgeon ® ™