Pastors fall under the clergy rules. They are considered a common law employee of the church so although they do receive a W2, their income is reported in different ways.
- The salary from the W2 is reported on the form 1040.
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Money received from weddings, offerings, special events outside their church would be reported on Schedule C for self employment.
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Housing allowance is not reported as income for personal income tax but is included for self employment tax.
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Expenses related to the salary are deducted as miscellaneous job related expenses on itemized deductions.
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Expenses relating to other income reported on Schedule C would be entered on that schedule.
Be sure to select the clergy option when entering the W2 and TurboTax will do all the calculations.
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Click
here for clergy income and expense information.
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Click here for clergy
information from the IRS.
For other details on how you enter clergy income see the information below.
https://ttlc.intuit.com/replies/3850695
