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MacGyver

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    TX
  1. When I went through school in 96 we had to do all the forms by hand in pencil so that you really learned how a change on this line of this form affects things on that form. I can't even imagine trying to do that with this new I'll be nice and say, "stuff." I'm doing good to know what the schedules are now. What was that about the Paperwork Reduction Act????
  2. Thanks for all the input. Unfortunately there just isn't a lot out there for this type of scenario. The first part being that the taxpayer is a pastoral counselor. His ability to practice within the state laws is based on the fact that he is ordained clergy. Without that, he would not be able to provide marriage counseling under the provisions of the law. The second issue being the Schedule C. It would seem that to take the housing deduction he would likely want at the very least to form an entity, put the housing allowance in the annual minutes, and receive a W-2. As for the 4361, I made sure we used SIC 866108 on the Schedule C so there is complete transparency. I'll keep you updated. Thanks again for all your willingness to help.
  3. That's a really good point. I think it gets adjusted for those who are not 4361 over on Part II of the Schedule SE Adjustments Worksheet and then transferred accordingly. It looks like Turbotax places "STMT" next to one of the SE lines, and adds a Statement after the form. That might allow it to be placed on the Schedule C, but I think the real question would be is it allowed? If we are to read Topic 417 to the letter, it says "employee," though it isn't written that way in Pub. 517. Are tax topics binding?
  4. Rita

    Thank you so much for your insight in this post:

     

  5. Rita, I know this is a really old post, but I just wanted to say, thank you. This has been a horrible thing to try to research as all the keywords you need, "Schedule C," "Housing Allowance," etc. are in all articles you don't need. How I missed the word "employee" on that page, I don't know. The situation I was researching is an ordained, Board Certified Pastoral Counselor, running a practice as a sole proprietor and reporting on a Schedule C. A Form 4361 has been approved by the IRS, so none of the income from that Schedule C passes to the Schedule SE. The challenge was how to take the Housing Allowance. To my way of thinking, it would perhaps report on Line 27 of the Schedule C so it would reduce the AGI, but I just couldn't seem to find a way to trigger the forms needed in the software without entering the allowance from a W-2. I was hopeful the Schedule C practice should be able to designate the allowance. Your post is the first thing I've seen to give a good reason why I can't seem to make it work. If any of you have any additional insight, please share. Thanks again.
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