If you are not a licensed tax professional, you probably get most of your tax news from friends, family or news programs. “I don’t have to track business expenses, I heard they are no longer deductible” has been a fairly common statement this tax season. But for Clergy, this statement is actually false!
The Tax Cuts and Jobs Act did eliminate unreimbursed employee expenses as a deduction on Schedule A, so most people can’t deduct them anymore. However, like most tax laws, there are exceptions. The instructions for Schedule SE were amended at the same time to state that Clergy could deduct expenses when calculating their self-employment taxes.
In other words, you should still keep track of your clergy unreimbursed mileage or out-of-pocket expenses. You could still deduct them to help reduce your self-employment taxes!
Are you looking for a 1040 tax preparer who specializes in Clergy Tax? Look no further. Visit our website at https://www.clergyfinancial.com/services/clergy-tax-preparation/ to get started on your 1040 return today. All documents must be in by March 15th to guarantee filing by the April 15th deadline!
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101