How do I exclude living allowance amount if it was included in block 1 of my w-2? How do I exclude it in turbotax as living allowance is tax free?

Are you sure they are tax free ?    If they are then they should not be on box 1 of the W-2 ... a corrected form should be issued ...   https://www.irs.gov/individuals/international-taxpayers/allowances-differentials-and-other-special-pay#:~:text=Payments%20received%20by%20U.S.%20Government,travel%20allowances%20are%20tax%20free.

Please explain what you mean by a living allowance  and why you think it should not be taxed.  There are several possibilities and we can’t really provide answers without more details.