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

[iainl]

How do I enter clergy housing allowance?

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.

[CesarJ]

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.

1. Go to the W-2 screen under Wages & Income.
2. 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.
3. If you get additional screens, answer those questions.
4. When you reach the Let's check for uncommon situations screen, check the box for Religious employment, then select Continue.
5. On the following screen, choose Clergy and select Continue.
6. 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
7. 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:

1. Go to other reportable income.
2. Answer No to Did you receive any other wages? and select Continue.
3. Scroll to the bottom of the Miscellaneous Income screen and choose 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, 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.

1. Enter the amount in box 1 as it's shown on your 1099-R.
2. 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.
3. Check Taxable amount not determined box is checked in the box 2b section.
4. Enter the rest of your 1099-R as you see it.

If box 2b is not checked

1. Enter your 1099-R exactly as you see it and complete the 1099-R section.
2. Search for other reportable income and then select the Jump to link in the search results.
3. Answer No to Did you receive any other wages? and select Continue.
4. 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.
5. Answer Yes to Any Other Taxable Income?
6. 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.