Jump directly to the Content

Application for Social Security Exemption

Late applications will not be accepted.

Key point: Ministers may exempt themselves from self-employment taxes with respect to their ministerial services if several conditions are met. One condition is that they file a timely exemption application with the IRS prior to the due date for filing their federal tax return for the second year in which they have net earnings from self-employment of $400 or more. The time period for filing the exemption application is not renewed when a minister has a change in beliefs or is ordained by another church.

• The Tax Court ruled that a minister who left the ministry, worked in secular employment for five years, and then was re-ordained with another church, did not have a new opportunity to file an application for exemption from self-employment (social security) coverage. In 1979, the minister was ordained as a deacon in the United Methodist Church. From 1980 until 1983, he served ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • January 3, 1994

Related ResourcesVisit Store

Protecting Your Tax-Exempt Status
Protecting Your Tax-Exempt Status
Understand the requirements of your tax-exempt status.
20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.
12 Law & Tax Guidelines for New Ministers
12 Law & Tax Guidelines for New Ministers
Essential knowledge to ensure legal and financial clarity and integrity in ministry.
Planning the Pastor’s Retirement Package
Planning the Pastor’s Retirement Package
Use this guide to develop your pastor's retirement plan for all stages of life.