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New Member
posted Jun 4, 2019 6:08:26 PM

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?

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Intuit Alumni
Jun 4, 2019 6:08:27 PM

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.

2 Replies
Intuit Alumni
Jun 4, 2019 6:08:27 PM

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.

New Member
Jun 4, 2019 6:08:28 PM

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!