Question

Deductions

Forum|Forum|6 years ago
February 25, 2020
1 reply
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As a retired pastor I qualify for parsonage exclusion. I have deducted the expenses such as utilities, insurance, etc. from my income. Is there a form where I need to report these deductions?

Thanks,

John

KathrynG3

Yes. It depends on how you received the funds for the parsonage, but typically the funds will be directed onto a Schedule C as self-employment. If so, then watch for the new Qualified Business Income Deduction. Clergy reporting self-employment are eligible.

There are several different ways the church can elect to pay for parsonages. The article below provides an overview with links to all the various ways that parsonages are reported to pastors: Is a parsonage or housing allowance deductible?