Where can we add ministry deductions? My husband is a pastor and we do much of our ministry in the house we own.

That's a complicated issue.  I want to talk about 3 things.

1. Does your husband have a housing allowance, designated in advance and in writing by the church board?  This is the single best tax break for clergy.  If not, I will discuss further.

2. Most pastors are common law employees and should receive a W-2, even though they are considered self-employed for some purposes.  Because pastors are W-2 employees, they can't deduct work related expenses from their income for purposes of income tax, this deduction was eliminate for 2018-2025.

3. Pastors can still deduct work-related expenses from income subject to self-employment tax, even though they can't deduct them from their income tax.  This requires making a manual entry on the forms using Turbotax installed on your own Mac or PC.  Go to forms mode, look for the Schedule SE Adjustment Worksheet, and enter the expenses on line 5c.

However, work-related expenses must be adjusted according to the Deason rule.  This means you need to figure out the percentage of taxable income and apply it to the expenses. You have to do all this manually, Turbotax does not include the calculation.  For example, suppose the pastor's salary is $50,000, with $30,000 designated as a tax-free housing allowance.  Since only 40% of the income is subject to income tax, only 40% of the expenses may be deducted.

Allowable expenses are ordinary and necessary expenses of being a pastor, such as books, study materials, and mileage.  He will need to calculate his own expense deductions -- he can't use the Turbotax interview -- then figure out the Deason percentage, and apply the expenses to line 5c of the Schedule SE adjustment worksheet.