Discrepancy on Clergy return when compare with other two software

[TTT]

I have done various tax exercises by using 3-4 software.

Sometimes, I found some discrepancies.

After I check the rules, in most cases, I found that intuit did a pretty good job.

However, when I do my exercise on clergy return,

I found discrepancy between Proseries and other softwares.

When I dig deep, I saw the discrepancy comes from Publication517-Worksheet1-3. (

I can see this worksheet from other software, but I cannot find it from Proseries.

How can I open Publication517-Worksheet1-3 from Proseries?

So, I can compare the calculation from Proseries.

Thank you!

[qbteachmt]

Direct IRS pub and worksheet numbers are not the same as using a program. However, telling us about the issue would be helpful. For instance, is that Housing Allowance? Retirement? Schedule SE?

[TTT]

Other Software uses Clergy Wksht1 to calculate Percentage of tax free income. Then it uses that percentage calculate deduction allowed on worksheet2. 

In this case, I got line 6 in wksh1 = 19%

Then other Expenses on sch C would be allowed only 81% to deduct (19%  is not allowed to deduct)

To calculate ln7 on wksht2 you must use line6 from wksht1 x expense.

ln7-wkst2 = expense-(expense * ln6-wksht1)

But Proseries uses all 100% to use as deductible expenses. And I try to check wksh1 and 2 from , Proseries, but I cannot found that wksht.

[qbteachmt]

"Other Software uses Clergy Wksht1"

No one knows what that is, though. If I write a program, I would number my worksheets. That isn't a Standard across all systems, or even matching something you would see in an IRS Instructions booklet or publication to help you know what to input for a form for a specific issue.

"In this case, I got line 6 in wksh1 = 19%"

Please, stop using Program descriptions. Use Words. Tell us what this is a ratio of. What got compared to what?

"To calculate ln7 on wksht2 you must use line6 from wksht1 x expense."

That's meaningless here, unless it is ProSeries.

"ln7-wkst2 = expense-(expense * ln6-wksht1)"

Again: Words?

Not line Numbers and worksheet Numbers.

Or, use the IRS resources, because all software for preparing income taxes must comply with what the IRS states. And you could refer to a worksheet in an IRS pub, because everyone has access to that publication.

"But Proseries uses all 100% to use as deductible expenses. And I try to check wksh1 and 2 from , Proseries, but I cannot found that wksht."

It's like this:

I own a Truck.

You own a Car.

In my truck, you cannot find how to open the Trunk.

Because there is no such thing. A truck doesn't even have a trunk.

You cannot ask us to follow along with something we have no way of accessing.

Think of this as if you were Teaching the Fact; not reviewing the paper.

[TTT]

Actually, this is my first year with intuit. 

I m not sure if I fill all inputs correctly ex. Personage, rent , utility allowance.

And I did not see those allowance effect the computation in Proseries.

But I can see those allowance when I use other software. When I use other software those allowance make some effect on clergy wksht1 and 2.

I m not sure if Proseries skip wksht1&2 &3 or I did not fill the input correctly?

When u do clergy return, can you see those allowance (such as Personage, rent , utility allowance.) make an effect on the calculation on clergy wksht1,2,3 or not?

[TTT]

I don't know how to explain this better.

But I try to explain line in worksheet1-Publication517.

It compute line6 in worksheet1 then use this number to compute line7 in worksheet2.

I saw the computation like this from other software, but I cannot see this computation from Proseries. 

And I do not know how to open these worksheet from Proseries.

[qbteachmt]

Pub 517 is for Self-Employment "SECA" taxes and/or "FICA" (which is Social Security and Medicare) taxes as an Employee. This publication is because a cleric might be both. You have to know what they do, what part(s) fall under Employment (such as, being hired by a church) and what they do as an Independent worker (such as, in the summer they travel to RV parks in their RV, hold Tent sessions and accept money for their services at weddings, etc).

And some religious beliefs have the right to file and declare they are Exempt from Social Security, which means when they get old, they cannot collect from that system, either. For instance, they know they will get old and die in an abbey somewhere.

And anything related to the employment is not a business expense, the same as you or I would have for tax reporting.

Worksheet 1 is Source of Income. That includes the Value of things provided. For instance, Housing has a value; you don't get it for free. That value is treated "the same as money" in the computations for things that apply.

You fill in what applies in the appropriate columns, for tax treatment. That gets you to line 6. For example: some people are Only an employee of a church and everything they do is under that Church as their congregation/employer. Some people do not work for a church, or are their own church. Or, are not even associated with a church, but a military or volunteer clergy. And there are special cases. It's very complicated and there are Church Guidance tax articles on the web, which are easier to use than what you found.

Specific costs of Life in general are not necessarily tax deductions (like Electricity cost for your home). But some things are used to compare to any paid amount or allowance you are given. Example: It costs you $5,000 to rent and pay all the bills that house you and your family, but your church gives you $10,000; that difference is like Free Money, so that is taxable. Or, you are allowed to pay $300 rent for a Water-Front mansion, or No Rent for it. All of that matters.

"It compute line6 in worksheet1 then use this number to compute line7 in worksheet2."

It moves to the Top of the next worksheet, because everything will now need that piece of info for the next part for allocation.

We call this "The Accounting Principle." It means that the Expenses are related to the Income. You only report Business Expenses that relate to the income from that same Business. That's why you see that fine print: "None of the other deductions claimed in this return are allocable to tax-free income."

See how they relate the cost to the income that is specific for that cost incurred? And that means certain things are not a deduction, just like your costs for your pet's vet bills are not a tax deduction.

That's why Mileage is there. Business mileage on the Church's vehicle where you are an employee is not your business deduction. Mileage on your own vehicle that is hauling the kids to school is not your Business mileage. Using the church's vehicle for personal would be taxable to you through payroll. Using your own vehicle for your own business is part of Schedule C costs to generate that income. But not all of the miles.

Line 7 is taking into consideration things like vehicle use and meals, where you have to pro rate them if you cannot point to something and say, "That is Purely personal, Purely my employment through my church, or Purely business activity for me working not under my church as their employee."

Remember, you are working on whether that value will then be subject to SECA. That's why the worksheets get you to a Net reportable amount.

"I saw the computation like this from other software, but I cannot see this computation from Proseries."

And I do not know how to open these worksheet from Proseries."

It has different inputs and screens.

You can work through the separate forms (W-2, 1040 Sched C, 1040 Sched SE, 1099-Misc, 1099-NEC) for minister or clergy designations. And you can use google to search for topics that might help:

proseries minister

proseries clergy