Yes, Opus. It only makes sense. You are not getting any tax free income on the SE form, therefore you should be able to deduct all of your expenses on that as an adjustment to income. You do get tax free income on the 1040 form though, because the housing allowance is tax free and that is why you can only deduct a portion of your expenses as it relates to the tax free income. The IRS cannot make you take a portion of your expenses on the SE Self Employment form, because they make you report your housing allowance as income on that form. Example: Minister makes 10K and gets 5K in a housing allowance. Minister gets to reduce on the portion related to the 5K in housing allowance on the 2106 Form, (which by the way is no longer allowable for any employment related expenses for Federal purposes, but seems to be included in Turbo Tax, because even though their is no more unreimbursed employee expenses allowed for Federal purposes, some States still allow the unreimbursed employee expenses deduction on the State Forms. So when the Federal adjusted income is pushed over to the State Forms, some of those deductions on the 2106 form may help to reduce the income on the state form. So, you would still fill out the 2106 form just like usual. You will not get a deduction on the Schedule A for anything on that form, but your income may be reduced for the beginning numbers on your state form. Keep that in mind. And yes, I did see on the 2017 guide for Publication 517 page 25 shows you how it adds back in and the 2018 517 Publication seems to just summarize main points, however under Tip page 10, middle column, Reduce your otherwise deductible expenses only in figuring your income
tax, not your SE tax. This is also clear, You must reduce any deductible expenses by the Deason Rule for Income Tax purposes, which means Federal Income Tax, however, don't reduce the expenses for your SE tax.
