What are the IRS regulations regarding a minister opting in or out of social security?

Posted Mon, 01/04/2010 - 18:22 by Anonymous

The minister can take a sec. 1402(e) exemption to opt out of self employment taxes which is social security tax for self-employed individuals (FICA for employees). The exemption is irrevocable and only applies to services performed in the exercise of the taxpayer’s ministry. Self Employment income from other activities is subject to self-employment tax. The IRS has created a form that Ministers can complete that effectively satisfies the requirements in the Internal Revenue Code and Regulations, Form 4361. The form should be signed and mailed in triplicate to the IRS no later than the 2nd year in which the minister had at least $400 of earnings as a minister. I have attached a copy of the form for your review which contains additional details.

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