What additional tax return peparation is needed if clergy receive a housing allo

Question

What additional tax return peparation is needed if clergy receive a housing allowance as part of their compensation and have unreimbursed employee ministerial expenses?

A) The clergy member income statement must be completed to allcate expenses between Schedule C and form 2106.

B) The expenses must be allocated to self-employment income and deducted on Schedule C.

C) Expenses allocable to excluded income must be figured to determine the nondeductible amount.

D) The expenses must be allocated between gross income and self-employment income to determine the deductible.

Explanation / Answer

Ans- (c) Expenses allocable to excluded income must be figured to determine the nondeductible amount.

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