topic How do I enter clergy housing allowance and other housing expenses? in Self employed

How do I enter clergy housing allowance and other housing expenses?

iainl — Sat, 14 Feb 2026 03:33:50 GMT

How do I enter clergy housing allowance?

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:22:28 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

When you see the Your W-2 summary screen, select 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:

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:07:29 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:09:59 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:12:07 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:15:07 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:17:42 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:17:49 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:19:49 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

CesarJ — Sun, 15 Feb 2026 03:21:39 GMT

It depends if the housing allowance was reported on Form W-2 or Form 1099R:

These instructions will work if your housing allowance is included in box 1 of your W-2. If it's not in box 1, it may result in an over adjustment of income.

Go to the W-2 screen under Wages & Income.
When you get to Box 14, enter Clergy Housing in the Description box, followed by the amount. (The amount might be reported to you in a letter from the church or in your employment contract if not on your W-2.) If the allowance isn't automatically classified as Other (not classified), select this option from the dropdown menu. Select Continue.
If you get additional screens, answer those questions.
When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
On the following screen, choose Clergy and select Continue.
Enter your allowance on the Okay, 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
- Your housing or parsonage allowance
Select Continue, and on the Clergy Self-Employment Tax screen, choose the appropriate option and Continue again.

Go to other reportable income.
Answer No to Did you receive any other wages? and select Continue.
Scroll to the bottom of the Miscellaneous Income screen and choose Start next to Other reportable income.
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, for example -10,000).

If you're not already on the 1099-R screen, open or continue your return in TurboTax, and then navigate to the 1099-R section:

TurboTax Online/Mobile: Go to the 1099-R screen under Wages & Incomeunder Wages & Incomeunder Wages & Income

How you account for the exclusion depends on whether box 2b (taxable amount not determined) is checked.

If box 2b is checked

Enter the appropriate taxable amount in box 2a of the Enter your 1099-R details screen.

Enter the amount in box 1 as it's shown on your 1099-R.
Subtract your documented housing expenses from the gross. distribution amount in box 1 and enter the result or zero (whichever is greater) in Box 2a - Taxable amount.
Check Taxable amount not determined box is checked in the box 2b section.
Enter the rest of your 1099-R as you see it.

If box 2b is not checked

Enter your 1099-R exactly as you see it and complete the 1099-R section.
Search for other reportable income and then select the Jump to link in the search results.
Answer No to Did you receive any other wages? and select Continue.
Scroll all the way to the bottom of the Let's Work on Any Miscellaneous Income screen and select Start next to Other Reportable Income.
Answer Yes to Any Other Taxable Income?
On the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number up to the amount reported in Box 2a Taxable Amount (precede the expenses with a minus sign, like -10,000).

This will remove the nontaxable portion from the distribution reported on your 1099-R.

Re: How do I enter clergy housing allowance and other housing expenses?

TPGiraffe — Thu, 02 Apr 2026 22:21:31 GMT

I do not receive a W-2 or 1099 from my church. 100% of what they pay me has been designated as housing allowance. Where can I enter this in TurboTax so that it treats the housing allowance it should (no federal or state taxes owed on this money; only self-employment tax is owed)?

Re: How do I enter clergy housing allowance and other housing expenses?

DaveF1006 — Fri, 03 Apr 2026 12:23:08 GMT

Because you don’t have a W-2 or 1099-NEC, you will report this as General Business Income (Schedule C).

Go to Federal > Income & Expenses.
Look for Self-Employment (or "Job (W-2) / Self-Employment").
Select Self-employment income and expenses.
Enter your church work as a new business. When asked for the "Business Code," use 813000 (Religious Organizations).

2. Enter the Income

When you reach the "Let's enter the income for your work" screen, select Other self-employed income (since you don't have a 1099-NEC).
Enter the total amount paid to you by the church. Describe it as "Clergy Housing Allowance."

3. Identify Yourself as Clergy

This is the most critical step. TurboTax needs to know you are a minister to apply the specific tax exemptions.
Continue through the business setup until you see a screen titled "Is this a qualified ministry?" or "Special Situations."
Check the box that says "I am a minister, member of a religious order, or Christian Science practitioner."
TurboTax will then ask how you want to handle your income. Since you are not "Opted out" of Social Security (unless you have an approved Form 4361), ensure you select that you are subject to Self-Employment tax.

4. Adjust for Income Tax Exemption

Once TurboTax recognizes you as clergy, it should prompt you for your Housing Allowance details.
It will ask for the Amount of Housing Allowance and your Actual Expenses (utilities, rent/mortgage, insurance, etc.).
If your allowance is $30,000 and your actual qualified expenses were $30,000, your Taxable Income for Federal/State purposes becomes $0.
The Exception: Even though the Income Tax is $0, TurboTax will automatically calculate the Self-Employment Tax (approx. 15.3%) on that full amount on Schedule SE.