Common Deductions

Fuel and vehicle maintenance are often a large expense for a pastor and can be deducted from taxes if not already reimbursed by the church. General wear and tear, including oil changes and repairs, on a personal vehicle used by a pastor in ministerial work is also an allowable deduction, according to IRS guidelines. When deducting travel expenses, pastors must choose to either deduct actual expenses or mileage. The IRS sets the maximum rate annually for mileage reimbursement. Another common deduction for pastors is the cost of meals for business expenses. For instance, a pastor may take a parishioner out for counseling over lunch. Only 50 percent of the total bill for a work-related meal can be claimed as a tax deduction. Phone bills, both home and cellular, can be deducted if used more than half the time for business purposes. Tuition and books for continuing education, along with travel costs related to attending church conferences, are also deductible, according to IRS guidelines.
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