@Movie1 wrote:
Thank you! As it stands now, I put in the Business Code & the Housing allowance. The SE Tax, was applied. Then through series of prompts for any business expense related to the Ministerial work, I placed my mileage to funerals, burials, picking up the church mail etc. It was placed in the personal deduction file. The Standard Federal Deduction was applied. The amount owed did not change after my mileage was given (It only changed after the stimulus credit was applied.) Is my understanding correct that I leave the mileage as is, where it is and take the resulting $931 credit and place it in the Ministerial Business Expense box to reduce the SE Tax on my Housing Allowance? I ask for mercy as I seek clarity. I am a Vet with sleep deprivation, sometimes I must repeat things before my mind receives it.
I'm at a bit of a disadvantage because I can't follow along in the program with you.
There are two places where most people will try to deduct mileage. One is a personal deduction, if they are employees (this would go on form 2106 and be transferred to the schedule A itemized deductions). The other is as a business deduction on schedule C, if they are self-employed. You aren't allowed to use either method because of the Deason rule. However, unless you have substantial other income from other jobs and substantial itemized deductions, you won't actually get a tax benefit for listing the mileage, so listing it improperly will do no harm and you don't need to remove it.
There is a third place where ministers can deduct work-related expenses, and that is as an adjustment to self-employment tax using the method shown in the screenshots posted by Ernie. You are allowed to use that method.
