You may be able to reduce your taxes by deducting unreimbursed, ministry-related expenses. These expenses may be claimed as miscellaneous Itemized Deductions on Schedule A. You should keep your expenses separated by those associated with your wages and those associated with your self-employment income, and you should keep receipts to substantiate these expenses.
The following are examples of some of the items you may be able to deduct:
- Subscriptions to publications and journals related to your ministry
- Dues for professional associations
- Insurance premiums for protection against liability or wrongful acts
- The cost and upkeep of vestments, including laundering and dry cleaning
- State or local government license fees, provided these fees are not paid for initial certification
- Vehicle expenses when driving on church business; including visiting parishioners on church business and buying supplies for the church (You must keep a mileage log to substantiate your vehicle expenses.)
- Travel expenses for traveling away from home if you are required to be away from home for longer than an ordinary days work
- Meals and entertainment expenses that are directly associated with your work or travel for work
- The cost of attending seminars and meetings directly related to your church work
- The cost of office supplies and equipment required to do your work, such as pens, paper, and computers
- The cost of brochures and pamphlets
- Long distance telephone charges
- Cell phone costs, if the cell phone is required for conducting church business
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.
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