Ministerial Income Worksheet
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1
2
3Worksheets
These worksheets are provided to help you figure your taxable ministerial income, your allowable deductions, and your net
self-employment income.
Worksheet 1. Figuring the Percentage of Tax-Free Income
Note. For each line, enter the appropriate amount in all boxes that are not shaded.
(a)
(b)
(c)
Source of Income
Taxable
Tax-free
Total
1
W-2 salary as a minister (from box 1 of Form W-2)
1
Gross income from weddings, baptisms, writing,
2
2
lecturing, etc. (from line 1 of Schedule C or C-EZ)
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 church
3a
b
Utility allowance, if any
3b
c
Actual expenses for utilities
3c
d
Enter the smaller of line 3b or 3c
3d
e
Excess utility allowance (subtract line 3d from line 3b)
3e
4a
Parsonage or rental allowance
4a
b
Utility allowance, if separate
4b
c
Total allowance (add lines 4a and 4b)
4c
d
Actual expenses for parsonage
4d
e
Actual expenses for utilities
4e
Total actual expenses for parsonage and utilities (add
f
4f
lines 4d and 4e)
g
FRV* of home, plus the cost of utilities
4g
h
Enter the smaller of line 4c, 4f, or 4g
4h
i
Excess allowance (Subtract line 4h from line 4c)
4i
Ministerial income (for columns (a), (b), and (c), add
5
5
lines 1 through 4i)
Total tax-free income
$
6
Percentage of tax-free income:
=
%**
Total income
$
* 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.
Publication 517 (2007)
Page 23
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