What additional tax return preparation is needed if clergy receives a housing al

Question

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

The Clergy Member Income Statement must be completed to allocate expenses between Schedule C and form 2106

The expenses must be allocated to self employment income and deducted on Schedule C

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

The expenses must be allocable between gross income and self employment income to determine the deductible amount

Explanation / Answer

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

Option 3 is correct

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

Option 3 is correct

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