Solved: The 2018 tax form is shortened and answers from last year don't help. How do I report the adjustment to income based on housing allowance expenditures.
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New Member

The 2018 tax form is shortened and answers from last year don't help. How do I report the adjustment to income based on housing allowance expenditures.

In years past tax form had a line where various adjustments could be reported.  Can't find a way to adjust amount of Clergy housing allowance reported on 1099 r since I have expenses which will greatly reduce the amount.

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New Member

The 2018 tax form is shortened and answers from last year don't help. How do I report the adjustment to income based on housing allowance expenditures.

 

Please let me know if this does not answer your question.  Also please see the link below for the Ministers' Tax Guide for 2019 returns.

As a retired minister, you can exclude any documented housing expenses from your allowance. Any allowance in excess of your documented expenses is considered taxable income.

If you're not already on the 1099-R screen, open your return, search for 1099-R or 1099R (lower case works too) and then select the "Jump to" link in the search results. Follow the directions to import or manually enter your 1099-R.

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

If Box 2b is checked

1.    Subtract your documented housing expenses from the gross distribution amount in Box 1.

2.    Enter the result in Box 2a, Taxable Amount, if it's a positive number.

       If the result is a negative number or 0, enter 0 in Box 2a.

If Box 2b is not checked

Enter your 1099-R exactly as you see it. You'll make an adjustment on another screen:

1.    With your return open, search for other reportable income and then select the "Jump to" link in the search results.

2.    Answer No to Did you receive other wages? and select Continue.

3.    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.

4.    Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number (precede the expenses with a minus sign, e.g. -10,000).

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

2020 Ministers' Tax guide for 2019 Returns 

 

[Edited 03.23.20 | 11:07 am]

 

View solution in original post

1 Reply
New Member

The 2018 tax form is shortened and answers from last year don't help. How do I report the adjustment to income based on housing allowance expenditures.

 

Please let me know if this does not answer your question.  Also please see the link below for the Ministers' Tax Guide for 2019 returns.

As a retired minister, you can exclude any documented housing expenses from your allowance. Any allowance in excess of your documented expenses is considered taxable income.

If you're not already on the 1099-R screen, open your return, search for 1099-R or 1099R (lower case works too) and then select the "Jump to" link in the search results. Follow the directions to import or manually enter your 1099-R.

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

If Box 2b is checked

1.    Subtract your documented housing expenses from the gross distribution amount in Box 1.

2.    Enter the result in Box 2a, Taxable Amount, if it's a positive number.

       If the result is a negative number or 0, enter 0 in Box 2a.

If Box 2b is not checked

Enter your 1099-R exactly as you see it. You'll make an adjustment on another screen:

1.    With your return open, search for other reportable income and then select the "Jump to" link in the search results.

2.    Answer No to Did you receive other wages? and select Continue.

3.    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.

4.    Answer Yes, and on the Other Taxable Income screen, type Clergy Housing Allowance in the description and enter your documented housing expenses as a negative number (precede the expenses with a minus sign, e.g. -10,000).

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

2020 Ministers' Tax guide for 2019 Returns 

 

[Edited 03.23.20 | 11:07 am]

 

View solution in original post

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