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Level 1
June 5, 2019
Solved

How can I get the TurboTax to recognize 1099 ministerial income as exempt from SE tax due to 4361 exepmtion?

  • June 5, 2019
  • 1 reply
  • 14 views

I have a 4361 exemption for ministerial income. But TurboTax figured Self-Employment Tax for income reported on 1099s. How can I adjust this to noe be liable for SE tax?

Best answer by KarenJ2

If you received a 1099MISC for your clergy income, you will need to enter the business code of 813000.  A few screens after entering this business code, on the screen Clergy and Recognized Religious Sects, you need to click that you are exempt from self-employment tax and that you have filed Form 4361,


1 reply

KarenJ2Answer
Level 13
June 5, 2019

If you received a 1099MISC for your clergy income, you will need to enter the business code of 813000.  A few screens after entering this business code, on the screen Clergy and Recognized Religious Sects, you need to click that you are exempt from self-employment tax and that you have filed Form 4361,


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Level 2
October 8, 2019

But what if that's not the appropriate SIC Code?  I understand that 813000 is a catch-all that is commonly used,  however, 866108 is the appropriate code for self-employment income as a Pastoral Counselor that has been approved by the IRS under Form 4361.  In this situation, how do we get the proper forms to populate in TurboTax?

Thanks in advance for any help.