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My husband is a pastor who only receives a W2 (no 1099). Do we still need to complete the self employment section of the income and expenses?

That section seems to want us to enter 1099 income data, and since we don't have any, I'm not sure how to complete it if it is required.
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2 Replies

My husband is a pastor who only receives a W2 (no 1099). Do we still need to complete the self employment section of the income and expenses?

Although clergy are considered self-employed for income tax purposes, most clergy are common law employees of their church and should get a W-2.  Typically it should have boxes 3-6 empty.  In Turbotax, check the box for "religious employment" on the page of special circumstances, and answer the questions about self-employment tax and a housing allowance or fair market value of the parsonage if one is provided.  Turbotax will calculate the correct self employment tax automatically.

You will only need a schedule C if he also has side income such as cash from weddings and funerals. (Use job code 183000.)  The main W-2 goes in the W-2 section.

This is an important resource http://www.ecfa.org/PDF/2016-Preparing-Tax-Returns-For-Clergy.pdf


MiriamF
Intuit Alumni

My husband is a pastor who only receives a W2 (no 1099). Do we still need to complete the self employment section of the income and expenses?

If your husband received a W-2, then you are entering your expenses in the wrong place.

  1. For a quick return to what you must report, type "Clergy" in the Search  box, then click Jump to clergy. 
  2. The program will take you to the W-2 income screen. Click on the Edit icon.
  3. Continue clicking through the screens until you come to the one headed Do any of these uncommon situations apply to this W-2? Select the box for Religious employment. (Click on the screenshot below for an image.)
  4. On the next screen, About Your Religious Employment, select You earned this income for clergy employment.
  5. Continue working through these screens until you have answered all the questions.

You will only need to file a Schedule C if your husband receives payment for performing weddings, funerals, etc. apart from what he earns as a pastor. If he has this income, then you can report it and the associated expenses as self-employment income.

This article explains more about the tax treatment of clergy income.    

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