General information on Form 1099-R
Changing any of the key entries listed below will affect the outcome on your tax return. The important entries on Form 1099-R include boxes 1, 2a, 2b, 7 (numeric and alpha), and the IRA/SEP/SIMPLE checkbox.
Additionally, if you need to use the Simplified Method, have converted a traditional IRA to a Roth IRA, or have rolled over amounts from an employer plan or a traditional IRA to a traditional IRA, please review the Additional information not reported on Form 1099-R and enter any data that applies to your situation. If you use Step-by-Step Guidance, the screens related to the above situations will only appear if you enter in applicable information.
The IRS allows a housing allowance to retired ministers only to the extent the recipient can justify the amount. Should you receive more than you can justify, you may have to count some of the distribution as taxable.
We suggest filing a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member. Be sure to include the amount received. You should keep documentation in your records to justify the amount of the housing allowance. This subject is covered in IRC Section 107, which you can mention in your statement.
To get the results you are expecting on your tax return, enter the gross amount in box 1, enter the appropriate taxable amount in box 2a, and deselect ("un-check") the Taxable amount not determined checkbox in 2b.
You should have received form 1099-R reporting the distribution. To access the entry fields for the 1099-R: