Clergy expense deduction

[KWF]

I'm doing a clergy 1040 tax return.

My software provider (Creative Solutions) is telling me that, not only are clergy unreimbursed employee expenses no longer deductible on Sch A (form 2106), but they are also no longer deductible on Sch SE.

CS has requested clarification from IRS, and is currently waiting for ruling.

In your example on page 14-7 of 1040 Edition, unreimbursed employee expenses are deducted for Sch SE. Do you guys know something I don't?

[Burke]

That is incorrect. Clergy expenses ARE deductible from SE calculations. See this link: www.irs.gov/taxtopics/tc417, page down to the heading Social Security Coverage. Your software should reflect this calculation on a worksheet attached to Schedule SE. See also Pub. 517.