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File Form 4361 to apply for an exemption from self-employment tax if you have ministerial earnings and are: An ordained, commissioned, or licensed minister of a church; A member of a religious order who has not taken a vow of poverty; or. A Christian Science practitioner.
Easy-to-miss deductions for ministers Health insurance costs\u2014You can deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you, your spouse and your dependents.
A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.
Generally, those expenses include rent, mortgage interest, utilities, and other expenses directly relating to providing a home. The amount excluded can't be more than reasonable compensation for the minister's services. If you own your home, you may still claim deductions for mortgage interest and real property taxes.
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