Clergy - Schedule C or Form 2106 Expense Adjustment

The income amount(s) used on Publication 517 Worksheets 1-4 (Clergy worksheets) to calculate the percentage of tax-free income (Worksheet 1) and the net self-employment income for Schedule SE (Form 1040) (Worksheet 4), are not transferred automatically from the Form W-2 Wage and Tax Statement. These are manual entries made in the Self-employment Tax Adjustments section as outlined below. Entering these amounts will NOT double the income claimed on the return.

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Taxes in the Federal Quick Q&A Topics menu to expand, then click Self-employment tax adjustments.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Self-Employment Tax - Clergy Information, enter the W-2 salary as a minister and/or the gross income from weddings, baptisms, writing, lecturing, etc., then click Continue.

The amounts entered here will appear on the worksheets and can be viewed by following these steps:

  1. From within your TaxAct Online return, click Print Center down the left to expand, then click Custom Print.
  2. Check Federal Schedule SE - Adjustments - [NAME]. You may need to scroll down in the section to locate the item.
  3. Click Print, then click the PDF link. Click the printer icon or the save icon (available when you hover your mouse over the PDF form) to print or save the PDF copy.

Note. If you see a message indicating you have not paid your return fees, click the View/Pay your return fees link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print.

  1. From within your TaxAct return (Desktop), click Forms in the top left corner.
  2. Click to expand the Federal folder, then click to expand the Worksheets folder.
  3. Scroll down and click to expand Schedule SE - Adjustments - Clergy Worksheets, then double-click Federal Schedule SE - Adjustments - [taxpayer name].
  4. Worksheet 1 is the first one listed. Scroll to the bottom of the screen to view Worksheet 4.
  5. Click the pink Printer icon above the worksheet. In the print dialog box that appears, you can send the output to a printer or a PDF document.

Once the fillable worksheets are completed, they will then become a part of the return and will be electronically filed and/or printed with the return. The amounts from the worksheets must be manually entered elsewhere in the program as explained previously.

Additional Information

Please refer to IRS Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers for additional information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.