@ErnieS0 wrote:
If you are reporting this amount as a housing allowance as awesome Tax Expert Alumni @DianeW explained in Housing allowance - pastor getting a 1099 MISC, then the amount would be entered as an adjustment to self-employment tax and will reduce your SECA liability.
- Go to Other Tax Situations tab
- Select Business Taxes
- Select Self-Employment tax
- Click Make Adjustments on Self-Employment Taz
- Enter your mileage deduction as Ministerial Business Expenses
@ErnieS0 in this case, the pastor is not allowed to deduct their mileage as a schedule C business expense because of the Deason rule. They can deduct the mileage from Schedule SE but this requires manual entry.
(Also, if they are a common-law employee but don't receive a W-2 because all their income is designated as a housing allowance, the fact that they have to trick Turbotax to create a schedule SE for the housing allowance by claiming to be self-employed does not actually make them self-employed, and employee work expenses are still disallowed under the TCJA. But that's a moot point in this case because of the Deason rule.)
Also note this person's prior questions about what kind of mileage is deductible in their contribution history.
