topic Tax Year Prior to 2020: Clergy and QBI in Get your taxes done using TurboTax

Tax Year Prior to 2020: Clergy and QBI

blankfam — Mon, 22 May 2023 18:52:43 GMT

Are clergy stipends eligible for QBI?

Re: Clergy and QBI

MinhT1 — Thu, 02 Apr 2020 18:53:07 GMT

Ministers who have net profit reported on Schedule C for ministerial services and who have 2019 taxable income of less than $160,700 ($321,400 if married filing jointly) before the application of a QBI deduction may be eligible for the QBI deduction.

Re: Clergy and QBI

blankfam — Thu, 02 Apr 2020 19:09:48 GMT

Thank you for your reply. The part that is unclear to me is that these are stipends generally free will offerings for weddings/funerals/baptisms. In order to be a qualified business, Turbo tax states, " the activity must be carried on with the primary intent of making a profit..." Obviously, for clergy, the primary intent is not profit.

Re: Clergy and QBI

VictorW9 — Thu, 02 Apr 2020 19:33:37 GMT

Those funds that you receive for doing pastoral things from others besides your church are supposed to be reported on Schedule C when you file taxes.

If you ever received money for performing a wedding, funeral and offering to be guest speaker at another church and the compensation doesn't come from your church it is considered self-employment income. Self-employment income is reported on Schedule C and you can deduct 20% of that income on Form 1040 when you file your taxes.