1. The 1099 he receives for teaching and recruiting is not considered clergy self-employment. He is not a dual status if this is his only self-employment income.
2. Pastors specifically are not exempt from federal income tax.
3. Pastors are not exempt from federal income tax. The employer is required to withhold unless you indicated otherwise on the W4.
4. If you are a minister of a church, your earnings for the services you perform in your capacity as a minister are subject to SE tax, even if you perform these services as an employee of that church. In TurboTax, if you indicate Religious employment, you will be given options to make the self-employment tax payments. You will have to make quarterly estimated taxes for the self-employment taxes.
5. The parsonage should not be included under the self-employment since it is associated with the W2 income. After you enter the W2, if you enter the Religious employment, it will also ask about the parsonage and expenses to determine the exclusion.
This is the IRS resource Publication 517, Social Security and Other Information for Members of the Clergy and Religious Worke.... Please feel free to ask if you have additional questions.
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