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I am a minister with a housing allowance in box 14 on my W-2. Why is turbotax adding the housing allowance to line 7 on Form 1040? I thought the housing allowance was not considered part of my taxable income.

    Employers use Box 14 to enter many different types of information and TurboTax may not recognize your entry in this box. I suggest you review your entries for the W-2 and look for this specific information:

    1. When you enter your Box 14 amount, TurboTax asks you to select a type of entry for this box. Although I don't know what the description says on your actual W-2 for housing allowance, select "Other - not on list below".
    2, Then as you continue to enter your W-2 information, there is a screen that asks if Any of These Apply to This W-2. On this screen, there is a box for "I earned this income for religious employment". If you check that box, you will then see additional screens that allow you to enter your housing allowance and you can indicate whether the wages and/or housing allowance are subject to self-employment tax. If you didn't see these screens, I suggest you review your entries for the W-2 and check the box about earning this income for religious employment.
      I figured out what my problem was.  The reason it added the housing allowance and said excess allowance on Form 1040 was because I had entered 0 somewhere when it asked the amount of the housing allowance that was used.  I changed that 0 to match the amount of the housing allowance, and the problem was corrected.
      • Can you review where you might of made that correction and please let me know?  It will probably fix my problem.  Thanks
      • Found it and it worked!! Thanks
      It took a while but the answer from TurboTaxKarenM eventually turned out correct. You have to go several pages to see the box to check for "I earned this income for religious employment".
      • I did exactly as TurboTaxKaren suggested and the wages show up correctly on the W2 form, but on the return TT has added the housing allowance into the income and typed Excess Allowance along with the housing amount in the margin.  It ends up taxing the housing allowance.

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