Changing any of the key entries listed below will affect the outcome on your tax return. The important entries on Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 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 previous situations will only appear if you enter in applicable information.
The IRS allows a housing allowance to retired ministers to the extent the recipient can justify the amount. Should you receive more than you can justify, the excess should be considered taxable.
You may include a statement with an electronically filed return using the instructions below. 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. Be sure to include the amount received.
You should have received Form 1099-R reporting the distribution.
To report Form 1099-R:
To attach a statement to the return, which will also print when the return is printed, and will be sent with the return:
OR, You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy member.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.