Ministerial Business Expenses: IRS Pubs indicate that you can't deduct things like professional association dues from self-employment tax, but Turbotax Premier allows it?

[KarenJ · Accepted solution]

There appears to be a carve out for ministers this year in adjusting their self-employment net income on Form SE now that miscellaneous itemized deductions subject to 2% have been eliminated.  According to the 2018 IRS Publication 517,  as a minister you are allowed to deduct any allowable expenses from your wages to get to the net amount on line 2 of Schedule SE, section A or B  and attach an explanation.

https://www.irs.gov/pub/irs-pdf/p517.pd

Wages earned as a common-law employee(explained earlier) of a church generally are subject to self-employment tax unless an exemption is requested, as discussed earlier under Exemption From Self-Employment (SE)Tax. Subtract any allowable expenses from those wages, include the net amount on line 2of Schedule SE (Form 1040), Section A or B,and attach an explanation.

See page 8 in Publication 517.  Let me know if this is not what you are asking about.  Please let me know where it is determined that ministers cannot deduct professional dues.  Many thanks.

[raviolio]

How do I address the figures from the worksheets in Pub 517 (Allowable Deductions for Ministers on Schedule C) in TurboTax. I saw one suggestion to "override" Schedule C line 28, but now TurboTax won't let me finish my taxes because it considers it an error. I don't see anywhere that TurboTax helps me (or even allows me!) to account for my non-taxable portion of my deductions. Please help!