Clergy Staff May Deduct Remote Work Expenses

27 May 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. 1. 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.

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