Housing Allowance from retirement funds

[Judah1]

I receive retirement funds from my denominational retirement account.    That 1099-R notes that all of that income is being reported as Housing Allowance.     How do I note that on Turbo Tax?   I should pay Social Security Tax but not income tax on that amount.

[MarilynG1]

1. If your Form 1099-R has Box 2b checked, then to claim a housing allowance for retired clergy, enter a taxable amount in Box 2a of the 1099-R data entry screen in TurboTax. To compute the taxable amount, subtract the allowable housing expenses from the pension amount.  If the housing expenses exceed the pension, enter a zero in Box 2a.
2. If Box 2b is not checked, please enter the 1099-R exactly as it appears on the form. This will cause the full amount to show as taxable. You will make your adjustment in Other Income, following the instructions below:

• Open your Federal return and choose Wages & Income
• Scroll down to Less Common Income and Show more
• Choose Miscellaneous Income, 1099-A, 1099-C
• Choose Other reportable income, and Start or Revisit
• Select ‘yes’ and you will be prompted to enter a description and amount. Enter the description "Retired Minister Housing Allowance," and enter the amount as a negative number.   At this point, the form 1040 will show your full pension as taxable, but the negative adjustment on Schedule 1, Line 21 for your housing allowance will remove it from taxation.