@pauloclayton wrote:
Fortunately this does apply to me as I'm an ordained worship pastor (serve in ministry, have control/direction/weigh-in on church ministry, etc.). The expenses part has changed since I started there 16 years ago, so I'm just making sure I claim what I'm able to and don't what I shouldn't as I want to ensure I'm following the requirements currently in place. I've already gotten the housing allowance stuff taken care of as I'm used to dealing with that and how to enter it in. Thanks for the additional insights!
The ECFA guide is really good. Prior years did not require registration to download you might find a copy of the 2019 or 2020 guide for free, but ECFA has really good resources.
For expenses on your income tax (form 2106 and schedule A, prior to 2018) you had to make an adjustment known at the Deason rule, to account for the non-taxable value of your parsonage or housing allowance. However, no Deason rule adjustment is required for the expense adjustments on schedule SE.
The IRS says that clergy are supposed to attach a written explanation of their expenses to explain the Schedule SE adjustments. However, Turbotax does not allow for PDF attachments, so I think that in recent years most clergy will simply e-file without including an explanation, but save their records in case of audit. Or, you could look for another software provider that will allow PDF attachments (if you can find one that also includes the ability to enter clergy expenses or even handle clergy correctly).
