Jump directly to the content

Clergy—Income Taxes

The Tax Court ruled that a minister was not exempt from Social Security because his exemption application was filed too late.

Federal
State:
Key point. Ministers may exempt themselves from paying self-employment taxes on their ministerial earnings by filing a timely exemption application with the IRS. The application must be filed by the due date of the federal tax return for the second year in which the minister has net earnings from self-employment of $400 or more, any portion of which comes from the performance of ministerial services. The performance of ministerial services may include services performed by licensed or commissioned ministers prior to their ordination.

Brannon v. Commissioner, T.C. Memo. 1999-370 (1999).

The Tax Court ruled that a minister was not exempt from social security because his exemption application was filed too late.

In order to be exempt from social security (self-employment) taxes, a minister must meet several requirements. One of these requirements is the submission of a timely exemption application ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • March 1, 2000

Related ResourcesVisit Store

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
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.
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.
20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.