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Allowances?  You mean deductions for business use of a personal vehicle?

If you are a common law employee with a W-2, you can deduct unreimbursed business expenses using form 2106. This is an itemized deduction subject to the 2% rule, so many taxpayers won't have anything to deduct anyway.

Then you have two other issues.

1. With a housing allowance, you have to reduce your deduction according to the Deason rule.  Suppose your compensation is $12,000 housing allowance and $25,000 wages.  Since only 25/37= 67% of your compensation is taxable income, you can only deduct 67% of your work-related expenses.  Turbotax does not support this calculation.  You can do it without making manual adjustments if you report only 67% of your miles, 67% of your books and other expenses, etc.  Or whatever percent applies to your facts and figures.   But you are also supposed to attach a written statement showing the calculations, which means you can't e-file.  (If you report a reduced deduction without the attached statement, your e-file will go through, but you may eventually be audited and asked to reduce your expenses or prove you already did.)

2. In addition to deducting the adjusted work expenses from your taxable income on form 2106, you can also deduct your adjusted work expenses from your income subject to self-employment tax.  But this can only be done in the desktop program, by manually entering your expenses on the schedule C Adjustments Worksheet, part 2 line 5c.


This may be helpful. <a rel="nofollow" target="_blank" href="http://www.ecfa.org/PDF/2016-Preparing-Tax-Returns-For-Clergy.pdf">http://www.ecfa.org/PDF/2016-Prep...>