How do I claim allowable deductions as a minister when my minister pay is reported only on a Schedule C?
Follow these steps in this order to report your allowable deductions:
- Fill out Worksheet 1, Worksheet 2, and Worksheet 3 from Publication 517 .
- Using Worksheet 2, go to your minister Schedule C and adjust your business expenses by the percentage you're allowed to claim on Schedule C.
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View your Schedule SE as we've calculated it. If the total amount we included on Schedule SE, Line 2 doesn't include the amount you figured in Worksheet 3 correctly, you'll need to make an adjustment.
To make an adjustment, go back to your Schedule C and click the Edit button next to Less Common Expenses on the Your Business screen. Continue until you get to the Self-Employment Tax Adjustments screen and answer Yes to the question that asks if you have other adjustments to your self-employment income. When you get to the Other Adjustments screen, enter your adjustment there. - Once you're ready to file your return, you'll need to mail it so you can include Worksheet 1, Worksheet 2, and Worksheet 3 with your return.
