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IRS.gov Website
Publication 517
taxmap/pubs/p517-008.htm#en_us_publink100033652

Comprehensive
Example(p13)

For Use in Tax Year 2013
rule
Rev. John White is the minister of the First United Church. He is married and has one child. The child is considered a qualifying child for the child tax credit. Mrs. Susan White is not employed outside the home. Rev. White is a common-law employee of the church, and he has not applied for an exemption from SE tax.
The church paid Rev. White a salary of $31,000. In addition, as a self-employed person, he earned $4,000 during the year for weddings, baptisms, and honoraria. He made estimated tax payments during the year totaling $7,000. The local community college paid him $3,400 for teaching a course.
Rev. and Mrs. White own a home next to the church. They make a $650 per month mortgage payment of principal and interest only. They paid $1,800 in real estate taxes for the year on the home. The church paid Rev. White $800 per month as his parsonage allowance (excluding utilities). The home's fair rental value for the year (excluding utilities) is $9,840. The utility bills for the year totaled $960. The church paid him $100 per month designated as an allowance for utility costs.
First, the parts of Rev. and Mrs. White's income tax return are explained in the order the Whites complete them. Next, the parts are illustrated in the order that Rev. White will assemble the return to send it to the IRS.
taxmap/pubs/p517-008.htm#en_us_publink100033653

Form W-2 From Church(p13)

For Use in Tax Year 2013
rule
The church completed its Form W-2 for Rev. White as follows.
taxmap/pubs/p517-008.htm#en_us_publink100033654

Box 1.(p13)

For Use in Tax Year 2013
rule
The church entered Rev. White's $31,000 salary.
taxmap/pubs/p517-008.htm#en_us_publink100033655

Box 2.(p13)

For Use in Tax Year 2013
rule
The church left this box blank because Rev. White did not request federal income tax withholding.
taxmap/pubs/p517-008.htm#en_us_publink100033656

Boxes 3 through 6.(p13)

For Use in Tax Year 2013
rule
Rev. White is considered a self-employed person for purposes of social security and Medicare tax withholding, so the church left these boxes blank.
taxmap/pubs/p517-008.htm#en_us_publink100033657

Box 14.(p13)

For Use in Tax Year 2013
rule
The church entered Rev. White's total parsonage and utilities allowance for the year and identified them.
taxmap/pubs/p517-008.htm#en_us_publink100033658

Form W-2 From College(p13)

For Use in Tax Year 2013
rule
The community college gave Rev. White a Form W-2 that showed the following.
taxmap/pubs/p517-008.htm#en_us_publink100033659

Box 1.(p13)

For Use in Tax Year 2013
rule
The college entered Rev. White's $3,400 salary.
taxmap/pubs/p517-008.htm#en_us_publink100033660

Box 2.(p13)

For Use in Tax Year 2013
rule
The college withheld $272 in federal income tax on Rev. White's behalf.
taxmap/pubs/p517-008.htm#en_us_publink100033661

Boxes 3 and 5.(p13)

For Use in Tax Year 2013
rule
As an employee of the college, Rev. White is subject to social security and Medicare withholding on his full $3,400 salary from the college.
taxmap/pubs/p517-008.htm#en_us_publink100033662

Box 4.(p13)

For Use in Tax Year 2013
rule
The college withheld $210.80 in social security taxes.
taxmap/pubs/p517-008.htm#en_us_publink100033663

Box 6.(p13)

For Use in Tax Year 2013
rule
The college withheld $49.30 in Medicare taxes.
taxmap/pubs/p517-008.htm#en_us_publink100033664

Schedule C-EZ (Form 1040)(p13)

For Use in Tax Year 2013
rule
Some of Rev. White's entries on Schedule C-EZ are explained here.
taxmap/pubs/p517-008.htm#en_us_publink100033665

Line 1.(p13)

For Use in Tax Year 2013
rule
Rev. White reports the $4,000 from weddings, baptisms, and honoraria.
taxmap/pubs/p517-008.htm#en_us_publink100033666

Line 2.(p13)

For Use in Tax Year 2013
rule
Rev. White reports his expenses related to the line 1 amount. He paid $87 for marriage and family booklets and drove his car 490 miles for business, mainly in connection with honoraria. Rev. White used the standard mileage rate to figure his car expense, as follows.
490 miles × 56.5 cents ($0.565) = $277
These expenses total $364 ($277 + $87). However, he cannot deduct the part of his expenses allocable to his tax-free parsonage allowance.
First, Rev. White uses Worksheet 1 (see Attachment 1, later) to figure his percentage of tax-free income. Then he completes Worksheet 2 (see Attachment 1, later) to show that 23% (or $84 = $364 × 23% (.23)) of his business expenses are not deductible because they are allocable to his tax-free allowance. He subtracts the $84 from the $364, enters the $280 difference on line 2, and adds a note at the bottom of the page to see the attached statement.
Rev. White attaches Worksheets 1 and 2 to his return. This is part of his required statement. See Attachment 1, later.
taxmap/pubs/p517-008.htm#en_us_publink100033667

Line 3.(p13)

For Use in Tax Year 2013
rule
Rev. White enters his net profit of $3,720 ($4,000 − $280) on line 3 and on Form 1040, line 12.
taxmap/pubs/p517-008.htm#en_us_publink100033668

Lines 4 through 8b.(p13)

For Use in Tax Year 2013
rule
Rev. White fills out these lines to report information about his car.
taxmap/pubs/p517-008.htm#en_us_publink100033669

Form 2106-EZ(p13)

For Use in Tax Year 2013
rule
Rev. White fills out Form 2106-EZ to report the unreimbursed business expenses he had as a common-law employee of First United Church.
taxmap/pubs/p517-008.htm#en_us_publink100033670

Line 1.(p13)

For Use in Tax Year 2013
rule
Before completing line 1, Rev. White fills out Part II because he used his car for church business. His records show that he drove 2,774 business miles, which he reports in Part II. Then, he figures his car expense for his line 1 entry.
2,774 miles × 56.5 cents ($0.565) =$1,567
taxmap/pubs/p517-008.htm#en_us_publink100033671

Line 4.(p13)

For Use in Tax Year 2013
rule
He enters $231 for his professional publications and booklets.
taxmap/pubs/p517-008.htm#en_us_publink100033672

Line 6.(p13)

For Use in Tax Year 2013
rule
Before entering the total expenses on line 6, Rev. White must reduce them by the amount allocable to his tax-free parsonage allowance. After completing Worksheet 3 (see Attachment 1, later), he finds that 23% [or $414 = ($1,567 + $231) × 23% (.23)] of his employee business expenses are not deductible. He subtracts $414 from $1,798 ($1,567 + $231) and enters the result, $1,384, on line 6, adding a note at the bottom of the page about the attached statement. He also enters $1,384 on Schedule A (Form 1040), line 21.
taxmap/pubs/p517-008.htm#en_us_publink100033673

Schedule A (Form 1040)(p13)

For Use in Tax Year 2013
rule
Rev. White fills out Schedule A as explained here.
taxmap/pubs/p517-008.htm#en_us_publink100033674

Line 6.(p13)

For Use in Tax Year 2013
rule
He deducts $1,800 in real estate taxes paid in 2013.
taxmap/pubs/p517-008.htm#en_us_publink100033675

Line 10.(p13)

For Use in Tax Year 2013
rule
He deducts $5,572 of home mortgage interest paid in 2013 (reported on Form 1098, Mortgage Interest Statement (not shown)).
taxmap/pubs/p517-008.htm#en_us_publink100033676

Line 16.(p13)

For Use in Tax Year 2013
rule
Rev. and Mrs. White contributed $4,800 in cash during the year to various qualifying charities. Each individual contribution was less than $250 and they have the required records for all donations.
taxmap/pubs/p517-008.htm#en_us_publink100033677

Line 21.(p13)

For Use in Tax Year 2013
rule
Rev. White enters his $1,384 of unreimbursed employee business expenses from Form 2106-EZ, line 6.
taxmap/pubs/p517-008.htm#en_us_publink100033678

Lines 25, 26, and 27.(p13)

For Use in Tax Year 2013
rule
He can deduct only the part of his employee business expenses that exceeds 2% of his adjusted gross income. After he completes page 1 of Form 1040, he fills out these lines to figure the amount he can deduct.
taxmap/pubs/p517-008.htm#en_us_publink100033679

Line 29.(p13)

For Use in Tax Year 2013
rule
The total of all the Whites' itemized deductions is $12,850, which he enters here and on Form 1040, line 40.
taxmap/pubs/p517-008.htm#en_us_publink100033680

Schedule SE (Form 1040)(p13)

For Use in Tax Year 2013
rule
After Rev. White prepares Schedule C-EZ and Form 2106-EZ, he fills out Schedule SE (Form 1040). He reads the chart on page 1 of the schedule and determines that he can use Section A—Short Schedule SE to figure his self-employment tax. Rev. White is a minister, so his salary from the church is not considered church employee income. Thus, he does not have to use Section B—Long Schedule SE. He fills out the following lines in Section A.
taxmap/pubs/p517-008.htm#en_us_publink100033681

Line 2.(p14)

For Use in Tax Year 2013
rule
Rev. White attaches a statement (see Attachment 2, Worksheet 4, later) that explains how he figures the amount ($43,638) to enter on line 2, and adds a note at the bottom of the page to see the attached statement.
taxmap/pubs/p517-008.htm#en_us_publink100033682

Line 4.(p14)

For Use in Tax Year 2013
rule
He multiplies $43,638 by 92.35% (.9235) to get his net earnings from self-employment ($40,300).
taxmap/pubs/p517-008.htm#en_us_publink100033683

Line 5.(p14)

For Use in Tax Year 2013
rule
The amount on line 4 is less than $113,700, so Rev. White multiplies the amount on line 4 ($40,300) by 15.3% (.153) to get his self-employment tax of $6,166. He enters that amount here and on Form 1040, line 56.
taxmap/pubs/p517-008.htm#en_us_publink100033684

Line 6.(p14)

For Use in Tax Year 2013
rule
Rev. White multiplies the amount on line 5 by 50% (.50) to get his deduction for the employer-equivalent portion of self-employment tax of $3,083. He enters that amount here and on Form 1040, line 27.
taxmap/pubs/p517-008.htm#en_us_publink100033685

Form 1040(p14)

For Use in Tax Year 2013
rule
After Rev. White prepares Form 2106-EZ and the other schedules, he fills out Form 1040. He files a joint return with his wife. First, he fills out the address area and completes the appropriate lines for his filing status and exemptions. Then, he fills out the rest of the form as follows.
taxmap/pubs/p517-008.htm#en_us_publink100033686

Line 7.(p14)

For Use in Tax Year 2013
rule
Rev. White reports $34,640. This amount is the total of his $31,000 church salary, $3,400 college salary, and $240 ($1,200 - $960), his excess utility allowance. He enters "Excess allowance $240" on the dotted line next to line 7 as directed under Excess rental allowance, earlier. His employers reported the two salaries to him in box 1 of the Forms W-2 he received.
taxmap/pubs/p517-008.htm#en_us_publink100033687

Line 12.(p14)

For Use in Tax Year 2013
rule
He reports his net profit of $3,720 from Schedule C-EZ, line 3.
taxmap/pubs/p517-008.htm#en_us_publink100033688

Line 27.(p14)

For Use in Tax Year 2013
rule
He enters $3,083, the deductible part of his SE tax from Schedule SE, line 6.
taxmap/pubs/p517-008.htm#en_us_publink100033689

Line 40.(p14)

For Use in Tax Year 2013
rule
He enters $12,850, the total itemized deductions from Schedule A, line 29.
taxmap/pubs/p517-008.htm#en_us_publink100033690

Line 51.(p14)

For Use in Tax Year 2013
rule
The Whites can take the child tax credit for their daughter, Jennifer. Rev. White figures the credit by completing the Child Tax Credit Worksheet (not shown) in the Instructions for Form 1040. He enters the $1,000 credit on line 51.
taxmap/pubs/p517-008.htm#en_us_publink100033691

Line 56.(p14)

For Use in Tax Year 2013
rule
He enters $6,166, the self-employment tax from Schedule SE, line 5.
taxmap/pubs/p517-008.htm#en_us_publink100033692

Line 62.(p14)

For Use in Tax Year 2013
rule
He enters $272, the federal income tax withheld, as shown in box 2 of his Form W-2 from the college.
taxmap/pubs/p517-008.htm#en_us_publink100033693

Line 63.(p14)

For Use in Tax Year 2013
rule
He enters the $7,000 estimated tax payments he made for the year.
taxmap/pubs/p517-008.htm#en_us_publink10004958

Line 64a.(p14)

For Use in Tax Year 2013
rule
Rev. White reads the instructions for lines 64a and 64b to see if he can claim the earned income credit. He completes Worksheet B (not illustrated) in the instructions and finds that he does not qualify for the earned income credit. He enters "No" on the dotted line next to line 64a as directed by line 5 of Worksheet B.
taxmap/pubs/p517-008.htm#en_us_publink100033694

Line 75.(p14)

For Use in Tax Year 2013
rule
He wants to have any overpayment of tax applied to his 2014 estimated tax.
taxmap/pubs/p517-008.htm#en_us_publink100033695

Attachment 1(p14)

For Use in Tax Year 2013
rule
Attachment 1 (Worksheets 1, 2, and 3) shows the computation of expenses that are nondeductible because they are allocable to tax-free ministerial income and the deductions allowed.
taxmap/pubs/p517-008.htm#en_us_publink100033696

Attachment 2(p14)

For Use in Tax Year 2013
rule
Attachment 2 (Worksheet 4) shows the computation of net self-employment income.
taxmap/pubs/p517-008.htm#id2013_f15021x0401

taxmap/pubs/p517-008.htm#en_us_publink1000108744
taxmap/pubs/p517-008.htm#id2013_f15021x0501

taxmap/pubs/p517-008.htm#en_us_publink100033698
taxmap/pubs/p517-008.htm#id2013_f15021x0601

taxmap/pubs/p517-008.htm#en_us_publink100033699
taxmap/pubs/p517-008.htm#id2013_f15021x0701

taxmap/pubs/p517-008.htm#en_us_publink100033700
taxmap/pubs/p517-008.htm#id2013_f15021x0801

taxmap/pubs/p517-008.htm#en_us_publink100033701
taxmap/pubs/p517-008.htm#id2013_f15021x0901

taxmap/pubs/p517-008.htm#en_us_publink100033702
taxmap/pubs/p517-008.htm#id2013_f15021x1001

taxmap/pubs/p517-008.htm#en_us_publink100033703
taxmap/pubs/p517-008.htm#en_us_publink1000268760

Attachment 1—John E. White 011-00-2222
Worksheet 1. Figuring the Percentage of Tax-Free Income

Note. For each line, enter the appropriate amount in all boxes that are not shaded.

 
Source of Income
(a)
Taxable
(b)
Tax-free
(c)
Total
1 W-2 salary as a minister (from box 1 of Form W-2)1  31,000  31,000 
2 Gross income from weddings, baptisms, writing, lecturing, etc. (from line 1 of Schedule C or C-EZ)2  4,000  4,000 
Note. Complete either lines 3a–3e or lines 4a–4i.   
• If your church provides you with a parsonage, complete lines 3a–3e.   
• If, instead of providing a parsonage, your church provides you with
a rental or parsonage allowance, complete lines 4a–4i.
   
3a
FRV* of parsonage provided by church3a    
b
Utility allowance, if any3b    
c
Actual expenses for utilities3c    
dEnter the smaller of line 3b or 3c3d    
e
Excess utility allowance (subtract line 3d from line 3b)3e    
4a
Parsonage or rental allowance4a9,600    
bUtility allowance, if separate4b1,200    
cTotal allowance (add lines 4a and 4b)4c10,800    
d
Actual expenses for parsonage4d9,600    
eActual expenses for utilities4e960    
fTotal actual expenses for parsonage and utilities (add lines 4d
and 4e)
4f 10,560    
gFRV* of home, plus the cost of utilities4g10,800    
h
Enter the smaller of line 4c, 4f, or 4g4h  10,560 10,560 
i
Excess allowance (Subtract line 4h from line 4c)4i  240  240 
5 
Ministerial income (for columns (a), (b), and (c), add lines 1
through 4i)
5  35,240 10,560 45,800 

6 

Percentage of tax-free income: Total tax-free income (line 5(b)) $ 10,560
                      Total income (line 5(c))       $ 45,800
=23 %** 
* FRV (Fair Rental Value): As determined objectively and between unrelated parties, what it would cost to rent a comparable home (including furnishings) in a similar location.
** This percentage of your ministerial expenses will not be deductible. Use Worksheets 2 and 3 to figure your allowable deductions.
taxmap/pubs/p517-008.htm#en_us_publink1000268762

Attachment 1—John E. White 011-00-2222  (continued)
Worksheet 2. Figuring the Allowable Deduction for Schedule C or C-EZ Expenses

1 
Percentage of expenses that are nondeductible (from Worksheet 1, line 6):   23  %
2 
Business use of car for entire year:    490   miles x 56.5 cents ($0.565). 2  277
3 
Meals and entertainment: $      × 50% (.50) 3   
4 
Other expenses (list item and amount)
a
  Marriage and family booklets4a87 
b
 4b  
c
 4c  
d
 4d  
e
 4e  
f
Total other expenses (add lines 4a through 4e)4f  87
5 
Total Schedule C or C-EZ expenses (add lines 2, 3, and 4f)5  364
6 
Nondeductible part of Schedule C or C-EZ expenses (multiply line 5 by the percent in line 1)6  84
7 
Deduction allowed.* Subtract line 6 from line 5. Enter the result here and on Schedule C, line 27a, or Schedule C-EZ, line 2. 7  280
* None of the other deductions claimed in this return are allocable to tax-free income.
 
taxmap/pubs/p517-008.htm#en_us_publink1000268763

Worksheet 3. Figuring the Allowable Deduction for Form 2106 or 2106-EZ Expenses

 Column AColumn B
1 Percentage of expenses that are nondeductible (from Worksheet 1, line 6):   23  %
2 Use of car for church business for entire year:    2,774   miles x 56.5 cents ($0.565). 2 1,567  
3 Meals and entertainment3   
4 Other expenses (list item and amount)
a  Professional publications and booklets4a 231  
b 4b  
c 4c  
d 4d  
e 4e  
5 Total expenses. In Column A, add lines 2 and 4a through 4e and enter the result. In Column B, enter the amount from line 3.5  1,798  
6 Enter reimbursements received for other expenses (Column A) and meals and entertainment (Column B) that were not included in box 1 of Form W-2 6   
7 Total Form 2106 or 2106-EZ unreimbursed expenses (subtract line 6 from line 5)7  1,798  
8 In Column A, enter the amount from line 7. In Column B, multiply line 7 by 50% (.50)8  1,798  
9 Add the amounts on line 8 of both columns and enter the total here9  1,798  
10Nondeductible part of Form 2106 or 2106-EZ expenses (multiply line 9 by the percent in line 1)10 414   
11Ministerial employee business expense deduction allowed.* Subtract line 10 from line 9. Enter the result here and on Form 2106, line 10, or Form 2106-EZ, line 6. 11 1,384 
* None of the other deductions claimed in this return are allocable to tax-free income.
taxmap/pubs/p517-008.htm#en_us_publink10004973

Attachment 2—John E. White 011-00-2222
Worksheet 4. Figuring Net Self-Employment Income for Schedule SE (Form 1040)

1 
W-2 salary as a minister (from box 1 of Form W-2) 1  31,000 
2 
Net profit from Schedule C, line 31, or Schedule C-EZ, line 32  3,720 
3a
Parsonage or rental allowance (from Worksheet 1, line 3a or 4a)3a9,600  
b
Utility allowance (from Worksheet 1, line 3b or 4b)3b1,200  
c
Total allowance (add lines 3a and 3b)3c 10,800 
4 
Add lines 1, 2, and 3c 4  45,520 
5 
Schedule C or C-EZ expenses allocable to tax-free income (from Worksheet 2, line 6)5  84  
6 
Total unreimbursed employee business expenses after the 50% reduction for meals and entertainment (from Worksheet 3, line 9) 6  1,798  
7 
Total business expenses not deducted in lines 1 and 2 above (add lines 5 and 6)7   1,882
8 
Net self-employment income. Subtract line 7 from line 4. Enter here and on Schedule SE,
Section A, line 2, or Section B, line 2.
8  43,638 
taxmap/pubs/p517-008.htm#en_us_publink10004985

(p23)

For Use in Tax Year 2013
rule
taxmap/pubs/p517-008.htm#en_us_publink10005270

(p25)

For Use in Tax Year 2013
rule
taxmap/pubs/p517-008.htm#en_us_publink10004968

Worksheets

These worksheets are provided to help you figure your taxable ministerial income, your allowable deductions, and your net self-employment income.   


taxmap/pubs/p517-008.htm#en_us_publink10004969

Worksheet 1. Figuring the Percentage of Tax-Free Income

Note. For each line, enter the appropriate amount in all boxes that are not shaded.

 
Source of Income
(a)
Taxable
(b)
Tax-free
(c)
Total
1 W-2 salary as a minister (from box 1 of Form W-2)1     
2 Gross income from weddings, baptisms, writing, lecturing, etc. (from line 1 of Schedule C or C-EZ)2     
Note. Complete either lines 3a–3e or lines 4a–4i.   
• If your church provides you with a parsonage, complete lines 3a–3e.   
• If, instead of providing a parsonage, your church provides you with
a rental or parsonage allowance, complete lines 4a–4i.
   
3a
FRV* of parsonage provided by church3a    
b
Utility allowance, if any3b    
c
Actual expenses for utilities3c    
dEnter the smaller of line 3b or 3c3d    
e
Excess utility allowance (subtract line 3d from line 3b)3e    
4a
Parsonage or rental allowance4a    
bUtility allowance, if separate4b    
cTotal allowance (add lines 4a and 4b)4c    
d
Actual expenses for parsonage4d    
eActual expenses for utilities4e    
fTotal actual expenses for parsonage and utilities (add lines 4d
and 4e)
4f     
gFRV* of home, plus the cost of utilities4g    
h
Enter the smaller of line 4c, 4f, or 4g4h    
i
Excess allowance (subtract line 4h from line 4c)4i     
5 
Ministerial income (for columns (a), (b), and (c), add lines 1
through 4i)
5     

6 

Percentage of tax-free income: Total tax-free income (line 5(b)) $       
                      Total income (line 5(c))      $ 
= %** 
* FRV (Fair Rental Value): As determined objectively and between unrelated parties, what it would cost to rent a comparable home (including furnishings) in a similar location.
** This percentage of your ministerial expenses will not be deductible. Use Worksheets 2 and 3 to figure your allowable deductions.
taxmap/pubs/p517-008.htm#en_us_publink1000268777

Worksheet 2. Figuring the Allowable Deduction for Schedule C or C-EZ Expenses

1 
Percentage of expenses that are nondeductible (from Worksheet 1, line 6):       %
2 
Business use of car for entire year:       miles x 56.5 cents ($0.565). 2   
3 
Meals and entertainment: $      × 50% (.50) 3   
4 
Other expenses (list item and amount)
a
 4a  
b
 4b  
c
 4c  
d
 4d  
e
 4e  
f
Total other expenses (add lines 4a through 4e)4f   
5 
Total Schedule C or C-EZ expenses (add lines 2, 3, and 4f)5   
6 
Nondeductible part of Schedule C or C-EZ expenses (multiply line 5 by the percent in line 1)6   
7 
Deduction allowed.* Subtract line 6 from line 5. Enter the result here and on Schedule C, line 27a, or Schedule C-EZ, line 2. 7   
* None of the other deductions claimed in this return are allocable to tax-free income.
 
taxmap/pubs/p517-008.htm#en_us_publink1000268778

Worksheet 3. Figuring the Allowable Deduction for Form 2106 or 2106-EZ Expenses

 Column AColumn B
1 Percentage of expenses that are nondeductible (from Worksheet 1, line 6):       %
2 Use of car for church business for entire year:       miles x 56.5 cents ($0.565). 2  
3 Meals and entertainment 3   
4 Other expenses (list item and amount)
a 4a  
b 4b  
c 4c  
d 4d  
e 4e  
5 Total expenses. In Column A, add lines 2 and 4a through 4e and enter the result. In Column B, enter the amount from line 3.5   
6 Enter reimbursements received for other expenses (Column A) and meals and entertainment (Column B) that were not included in box 1 of Form W-2 6   
7 Total Form 2106 or 2106-EZ unreimbursed expenses (subtract line 6 from line 5)7   
8 In Column A, enter the amount from line 7. In Column B, multiply line 7 by 50% (.50)8   
9 Add the amounts on line 8 of both columns and enter the total here9   
10Nondeductible part of Form 2106 or 2106-EZ expenses (multiply line 9 by the percent in line 1)10  
11Ministerial employee business expense deduction allowed.* Subtract line 10 from line 9. Enter the result here and on Form 2106, line 10, or Form 2106-EZ, line 6. 11  
* None of the other deductions claimed in this return are allocable to tax-free income.
taxmap/pubs/p517-008.htm#en_us_publink10004970

Worksheet 4. Figuring Net Self-Employment Income for Schedule SE (Form 1040)

1 
W-2 salary as a minister (from box 1 of Form W-2) 1  
2 
Net profit from Schedule C, line 31, or Schedule C-EZ, line 32   
3a
Parsonage or rental allowance (from Worksheet 1, line 3a or 4a)3a  
b
Utility allowance (from Worksheet 1, line 3b or 4b)3b  
c
Total allowance (add lines 3a and 3b)3c 
4 
Add lines 1, 2, and 3c 4   
5 
Schedule C or C-EZ expenses allocable to tax-free income (from Worksheet 2, line 6)5   
6 
Total unreimbursed employee business expenses after the 50% reduction for meals and entertainment (from Worksheet 3, line 9) 6   
7 
Total business expenses not deducted in lines 1 and 2 above (add lines 5 and 6)7  
8 
Net self-employment income. Subtract line 7 from line 4. Enter here and on Schedule SE,
Section A, line 2, or Section B, line 2.
8