gfizer Posted February 18, 2019 Report Share Posted February 18, 2019 It is my understanding that TCJA did not affect a minister's ability to deduct ministry expenses in the calculation of self-employment income even though those expenses are no longer deductible on Schedule A. This calculation used to be handled on the clergy worksheets in ATX but this does not appear to be the case this year. The IRS instruction for Schedule SE state: "If you were a duly ordained minister who was an employee of a church and you must pay SE tax, the unreimbursed business expenses that you incurred as a church employee are not deductible as an itemized deduction for income tax purposes. However, when figuring SE tax, subtract on line 2 the allowable expenses from your self-employment earnings and attach an explanation." Have any of you dealt with this yet? If so, how are you handling it? Is there a worksheet in the software that handles this that I am missing somewhere or are you simply overriding the figure on line 2 of schedule SE and attaching a PDF explanation to the return when efiling or paper filing with an attached explanation? Quote Link to comment Share on other sites More sharing options...
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