Clergy Staff May Deduct Remote Work Expenses

Clergy Staff May Deduct Remote Work Expenses

With the current quarantine situation in many states, many more people are working from home. While most non-clergy employees can no longer deduct unreimbursed employee expenses on Schedule A, Clergy still have the ability to deduct these expenses on Schedule SE, their self-employment tax schedule.

If you had to buy a computer, purchase software, buy headphones, buy a microphone or webcam, or subscribe to a web-conferencing program, you can deduct these expenses on your self-employment taxes. Keep in mind the following important points:

      1. Keep the receipt. If IRS asks for proof, you want to be able to show what you paid.
      2. Only unreimbursed expenses can be deducted. If your church reimbursed you for the expense, you cannot deduct it.
      3. If you use these items for work and for personal use, only a portion of the expense will be deductible. You will have to determine the percentage of time you use the items for work and the percentage of time you or others use the items for personal use.

 

Payroll Partners is committed to helping clients stay informed about payroll, tax and human resource news, developments and current events. This article is intended to provide readers with general information on tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax practice. All efforts have been made to assure the accuracy of the information. Payroll Partners does not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax practice. If you are seeking tax, financial or human resources advice, you are encouraged to consult a licensed professional.

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