Self-employment tax

[djames1958]

I have an IRS-granted ministerial exemption (since 1992) for work I do as a missionary - and so do not owe self-employment tax on that. That income is reported to me on a 1099 NEC.

However, I also have income as a freelancer for non-ministry work. However, for some reason I can't figure out how to get TurboTax to include self-employment for that tax, while not calculating it for the ministry income.

I can't find where I input my exemption initially into Turbo-Tax years ago - as it just seems to carry over for all business income.

I am using Turbo-Tax home and business. Should I have a different version.

Any help would be appreciated.

Dave

[DavidD66]

You are using the correct version.  It sounds like you are reporting both types of income as one business.  What you need to do is create a separate business for the non-ministry freelance work you do.  When you first set-up your minister "business" you would have entered business code 813000, which would result in the program asking questions about your housing allowance and Form 4361 & 4029.  Your answers to these questions made your missionary income exempt from self-employment tax.  You need to create another business with a different business code.

To add another business, while working in TurboTax Desktop, Home & Business:

• Click on "Business"
• Click on "Business Income and Expenses"
• Click on "I'll choose what I work on"
• Next to "Business income and expenses" click on "Update"
• Click on the "Add Another Business" button
• Continue, and the program will guide you through creating another business

[djames1958]

Thanks for your kind response.

They are set up as separate businesses.

I'm a freelance editor and graphics artist, and I put 999999 Misc. as the code since I couldn't find a fit. 

Then I changed it to Independent writers to see if that made a difference. It still didn't.

I looked back at 2012 which I did using TurboTax and it seemed to work fine. That year I had this same business and then shut it down - starting back up this year.

Anyway, when I go into the business tax section it says: No Self-Employment Tax

Any other ideas?

[DavidD66]

If would try switching to Forms mode by clicking on the "Forms" icon in the upper right hand corner of your screen.  Once in Forms mode, on the left hand side of your screen, under "Forms in My Return" scroll down and click on "SE-T".   In Part I - A, make sure the box is checked. 

[djames1958]

I figured out the problem. My Schedule C for my ministry was checked as a 4029 which is for all income. I had to check the other box to make it only for that Schedule C and not all of them.

By the way, I didn't see any for SE-T

Thanks.

[DavidD66]

I'm glad you figured it out.  The SE-T, which is the Self-Employment Schedule may not have been created until after you corrected the problem with the Form 4029 vs Form 4361.