Pastor Malachi received $55,000 in ministerial earnings $38,500 salary for ministerial services, $2,750 for performing weddings, and $13,750 excluded parsonage allowance. He incurred $7,000 of unreimbursed expenses connected with his ministerial earnings $5,500 related to his ministerial salary and $1,500 related to the weddings performed as self-employed. How would you calculate the deductible amount of unreimbursed expenses?

Subtract the self-employment expenses from self-employment earnings; the difference is the amount of deductible expense.

Divide wage-related expenses by the excluded parsonage allowance. That percentage times the self-employment expenses gives the amount of expense to be deducted.

Add all unreimbursed expenses together (wage-related and self-employment). Divide the self-employment expenses by that total to get a percentage. Take that percentage times the self-employment expenses to get the amount NOT able to be deducted.

Divide the excluded parsonage allowance by total income. Take that percentage times the self-employment expenses to calculate the amount of expenses NOT able to be deducted.