When you are paid on a 1099-MISC and have a separate housing allowance, here is how to report it:
You need to set up a self-employed business by running the schedule C interview. For job code, enter 813000. This is a code for religious and other non-profits and will trigger Turbotax to ask about the amount of your housing allowance.
If using Turbotax Desktop installed on your own Mac or PC, you can also directly enter the allowance on the proper worksheet. Post back for instructions.
And, if filing a schedule C for clergy self-employment, be aware that you can't deduct your business expenses normally. You must follow the Deason rule, which means you can only deduct a percent of your business expenses based on the percent of your income that is taxable and not non-taxable housing allowance. For example, if your income is $20,000 in cash wages and $30,000 in a declared housing allowance, then since 40% of your income is taxable, you can only deduct 40% of your work expenses. Turbotax does not do this calculation, you must do it yourself. And technically, you are not supposed to e-file. You are supposed to file by mail and attach a written statement showing your work expenses and documenting your Deason rule adjustment. (You can probably e-file anyway, but save your calculations to show the IRS in case you are audited.)
Read this for more:
http://www.ecfa.org/PDF/MinTax_Preparing_2019.pdf
