Clergy SE Tax and Mileage deduction for W2 pastor

[Bjorn]

Do w2 pastors get to reduce SE income by expenses such as mileage this year? I use Ultra tax and it is usually correct and they did not give reduce his SE income by expenses.
I know 2106 is gone for federal tax purposes but thought it may still be there to lower SE for pastors. Does anybody know for sure? He does NOT have a minister schedule C
Aloha Bjorn

[Dude]

Depends on the structure of the church. For instance, the catholic church has a Diocese. Priests I know are considered w-2 employees if they work at any church within the diocese (which is 39 churches). If they work at a school or church that is not in the diocese they are considered independent contractors and are paid on a 1099, which can have related expenses deducted because they also have to pay SE tax. W-2 employees cannot deduct expenses this year.

[TaxGuyBill]

The deduction from SE tax is still in the 2018 Instructions.


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.

https://www.irs.gov/instructions/i1040sse#idm140708380554288