topic Tax on Clergy housing allowance in Indiana in Get your taxes done using TurboTax

Tax on Clergy housing allowance in Indiana

mosermorse1 — Tue, 11 Feb 2025 21:10:03 GMT

Does Indiana require you to pay income tax on clergy housing allowance, that is excluded from federal taxes?

If it doesn't, then when I enter my 1099-R, question 16, State Distribution, should I enter the taxable amount I entered in 2a? I calculated 2a by subtracting my housing expenses/ allowance from the Gross distribution in box 1. Or do I have to put the full gross distribution from box 1 in box 16?

Re: Tax on Clergy housing allowance in Indiana

MaryK4 — Wed, 12 Feb 2025 01:34:00 GMT

Indiana uses the federal AGI and does not have parsonage as an addback so it is not taxable on your state tax return. You can adjust the Box 16 amount to reflect this so that it is not taxed by Indiana.

Re: Tax on Clergy housing allowance in Indiana

mosermorse1 — Fri, 14 Feb 2025 20:02:17 GMT

Mary, Thank you very much for your reply. Since IN uses the federal AGI, do I need to change the amt in box 16?

I'm glad to know it's not an addback in IN.

Re: Tax on Clergy housing allowance in Indiana

DianeW777 — Wed, 19 Feb 2025 16:16:29 GMT

It depends. If you find the Indiana (IN) return has the correct income upon review, then you can leave Box 16 as it is on the actual W-2.

You have access to all forms when you choose to print your return in TurboTax Online/Mobile. However you are required to pay before printing, but do not have to file until you are ready.

Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review the detail of your forms and worksheets.

@mosermorse1