Are clergy stipends eligible for QBI?
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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.
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.
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.
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