It's complicated. Also, last year, you were only allowed to deduct expenses related to the schedule C job on schedule C, not all your clergy expenses. Clergy expenses for the W-2 job are only allowed under the following rules.
Work-related expenses for W-2 employers are not deductible from taxable income for tax years 2018-2025. However, they are deductible from your income subject to self-employment tax. You should receive a W-2 with boxes 3-6 blank, meaning no withholding for social security and medicare tax. Instead, you pay self-employment tax on schedule SE. You can deduct ordinary and necessary work expenses from the income subject to SE tax. This adjustment can only be made using the desktop version of Turbotax installed on your own Mac or PC. Switch to forms mode and locate Sch SE Adj Wks (schedule SE adjustment worksheet). The adjustment for expenses is on line 5c. You can take this adjustment even if you don't itemize your other personal deductions.
However, you must first manually adjust your expenses according to the Deason rule, which takes account of any non-taxable housing allowance. For example, suppose your total compensation is $50,000, of which $20,000 is a non-taxable housing allowance and $30,000 of wages. Since only 60% of your wages is considered taxable income (even though the entire amount is subject to SE tax), you can only deduct 60% of your expenses on schedule SE. You must make these calculations and adjustments yourself, and keep copies of your records for at least 3 years in case of audit.
Work-related expenses may be deductible on your state tax return if your state follows the old IRS law from before 2018, and if you itemize your deductions on your state tax return. You can enter work-related expenses in the usual deductions section in the main federal interview. They will be ignored for the federal return but will flow to the state return if you benefit from them. However again, you must make the Deason rule adjustment, and you must make it manually, Turbotax can't do it for you. If 60% of your compensation is taxable income as in my example, you could deduct 60% of your mileage, 60% of books and supplies, and so on.
