First:
I assume you have a correct clergy W-2 with your income in box 1, federal withholding is optional in box 2, and boxes 3-6 should be blank. When entering your W-2, check the box for "religious wages." You will be asked for the parsonage value or your housing allowance, and your qualified expenses. If you live in a parsonage, both numbers will be the same, and should be the total of the fair rental value of the parsonage plus any utilities paid by the church. This will put your wages only on line 1a, but your total wages and parsonage will be put on schedule SE subject to self-employment tax. You will also be asked how SE tax should be calculated, the correct answer is "on both."
Then as to unreimbursed expenses:
They are not deductible from income subject to income tax as that itemized deduction was removed for 2018-2015. You can still use them as an adjustment to your self-employment income on schedule SE. However, there are two important caveats.
1. You must adjust your expenses according to the Deason rule. For example, if your wages are $30,000 and your parsonage value is $20,000, then 60% of your compensation is subject to income tax. That means that only 60% of your unreimbursed expenses are allowed as an adjustment to SE income. You must do the calculation yourself and keep all your records in case of audit.
2. To make the adjustment, you must add your expenses to line 5c of the Schedule SE Adjustment Worksheet (Sch SE Adj Wks). This is only accessible using Forms mode in the Turbotax desktop program installed on your own Mac or PC from a CD or download. The adjustment can't be made using Turbotax Online because the Online program does not allow direct entry on the forms. If you are using Turbotax online now, you can buy and install the download and then transfer your data from from online to your computer so you don't have to start from scratch.
