Father Watkins received $50,000 in ministerial earnings, $35,000 salary for mini

Question

Father Watkins received $50,000 in ministerial earnings, $35,000 salary for ministerial services, $5,000 for performing weddings, and $10,000 excluded parsonage allowance. Father Watkins incurred $6,000 of unreimbursed expenses connected with his ministerial earnings - $5,200 related to his ministerial salary and $800 related to the weddings performed as self-employed. How much of the expenses related to his ministerial wage earnings will be deductible when figuring net income for income tax after allocation to this excluded parsonage allowance? A. $6,000. B. $5,200. C. $4,160, D. $1,040. • Me: I know that B & D are incorrect answers

Explanation / Answer

Note: Self-employed expenses are deducted if they are allowable.

In the question total expenses incurred

= $5200 + $800 = $6000

=> Deduction = $6000.

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