Our medically necessary home project will exceed my salary this year. Most of my income is from my church salary, as a Pastor. I also have a few other forms of income. It seems I can assign all of my church salary as housing allowance for this year since the cost is greater than my salary. Is that correct? If so, this would make the medical expense deduction pointless on my church salary. Again, does that sound right? However, I do have to pay self-employment tax on all income (including church salary). So I am wondering if the medical expense deduction can just be applied? I want to be sure I can do both.
