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Do I have to use Form 1099-MISC to report clergy income?

My church sends me my income statement on a 1099-MISC for clergy services but if I try to report it using 1099-MISC it gets taxed.  Is there another way?
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Expert Alumni

Do I have to use Form 1099-MISC to report clergy income?

This income is taxable to you. 

Pastors fall under the clergy rules.  They are considered a common law employee of the church so although they should receive a W2, (some churches are still issuing 1099-MISCs) their income is reported in different ways.

  • The salary from the 1099-MISC is reported on the Schedule C and must be included for self employment tax.
  • Money received from weddings, offerings, special events outside their church would be reported on Schedule C for self employment.
  • Housing allowance is not reported as income for personal income tax but is included for self employment tax.
  • Expenses related to the salary are deducted as miscellaneous job related expenses on itemized deductions.
  • Expenses relating to other income reported on Schedule C would be entered on that schedule.

Be sure to select the clergy option when entering the W2 and TurboTax will do all the calculations.

  • Click here for clergy income and expense information.
  • Click here for clergy information from the IRS.

For other details on how you enter clergy income see the information below.

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