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Your earnings that are not from the exercise of

Form SS – 8. If you are not certain whether

your ministry may be subject to social security

you are an employee or a self-employed person,

You may want to see:

tax under FICA or SECA according to the rules

you can get a determination from the IRS by

that apply to taxpayers in general. See Qualified

filing Form SS – 8.

Publication

Services, later.

Tax Guide for U.S. Citizens and

Members of

Resident Aliens Abroad

Ministers

Religious Orders

525

Taxable and Nontaxable Income

If you are a minister of a church, your earnings

If you are a member of a religious order who has

529

Miscellaneous Deductions

for the services you perform in your capacity as

not taken a vow of poverty, your earnings for

a minister are subject to SE tax unless you have

533

Self-Employment Tax

qualified services you performed as a member

requested and received an exemption. See Ex-

of the order are subject to SE tax. See Qualified

535

Business Expenses

emption From Self-Employment (SE) Tax, later.

Services, later. This does not apply if you have

These earnings are subject to SE tax whether

590

Individual Retirement Arrangements

requested and received an exemption as dis-

you are an employee of your church or a

(IRAs)

cussed under Exemption From Self-Employ-

self-employed person under the common law

ment (SE) Tax, later.

596

Earned Income Credit

rules. For the specific services covered, see

Qualified Services, later.

Vow of poverty. If you are a member of a

Form (and Instructions)

religious order who has taken a vow of poverty,

SS – 8 Determination of Worker Status for

you are exempt from paying SE tax on your

Ministers Defined

Purposes of Federal Employment

earnings for qualified services (defined later)

Taxes and Income Tax Withholding

you perform as an agent of your church or its

Ministers are individuals who are duly ordained,

agencies. For income tax purposes, the earn-

SS – 16 Certificate of Election of

commissioned, or licensed by a religious body

ings are tax free to you. Your earnings are con-

Coverage Under the Federal

constituting a church or church denomination.

sidered the income of the religious order.

Insurance Contributions Act

They are given the authority to conduct religious

Services covered under FICA at the elec-

worship, perform sacerdotal functions, and ad-

Schedule SE (Form 1040)

tion of the order. Even if you have taken a

minister ordinances or sacraments according to

Self-Employment Tax

vow of poverty, the services you perform for your

the prescribed tenets and practices of that

church or its agencies may be covered under

1040 – ES Estimated Tax for Individuals

church or denomination.

social security. Your services are covered if your

If a church or denomination ordains some

1040X Amended U.S. Individual Income

order, or an autonomous subdivision of the or-

ministers and licenses or commissions others,

Tax Return

der, elects social security coverage for its cur-

anyone licensed or commissioned must be able

rent and future vow-of-poverty members.

4029 Application for Exemption From

to perform substantially all the religious func-

The order or subdivision elects coverage by

Social Security and Medicare Taxes

tions of an ordained minister to be treated as a

filing Form SS – 16. It can elect coverage for

and Waiver of Benefits

minister for social security purposes.

certain vow-of-poverty members for a retroac-

4361 Application for Exemption From

tive period of up to 20 calendar quarters before

Self-Employment Tax for Use by

the quarter in which it files the certificate. If the

Employment Status for Other Tax

Ministers, Members of Religious

election is made, the order or subdivision pays

Purposes

Orders and Christian Science

both the employer’s and employee’s share of

Practitioners

the tax. You do not pay.

Even though you are considered a self-em-

ployed individual in performing your ministerial

Services performed outside the order.

services for social security tax purposes, you

Ordering publications and forms. See How

Even if you are a member of a religious order

may be considered an employee for income tax

To Get Tax Help, near the end of this publica-

who has taken a vow of poverty and are required

or retirement plan purposes. For income tax or

tion, for information about getting these publica-

to turn over to the order amounts you earn, your

retirement plan purposes, some of your income

tions and forms.

earnings are subject to federal income tax with-

may be considered self-employment income

holding and employment (FICA) tax if you:

and other income may be considered wages.

•

Work for an organization outside your re-

ligious community, and

Social Security

Common-law employee. Under common law

•

rules, you are considered either an employee or

Perform work that is not required by, or

Coverage

a self-employed person depending on all the

done on behalf of, the order.

facts and circumstances. Generally, you are an

employee if your employer has the legal right to

In this case, you are considered an employee

The services you perform in the exercise of your

control both what you do and how you do it, even

of that outside organization. You may, however,

ministry are covered by social security and

if you have considerable discretion and freedom

be able to take a charitable deduction for the

Medicare under SECA. Your earnings for these

of action. For more information about the

amount you turn over to the order. See Publica-

services are subject to self-employment tax (SE

common-law rules, get Publication 15 – A,

tion 526, Charitable Contributions.

tax) unless one of the following applies.

Employer’s Supplemental Tax Guide.

•

You are a member of a religious order

If you are employed by a congregation for a

Lay employees. Lay employees generally are

who has taken a vow of poverty.

salary, you are generally a common-law em-

covered by social security. However, see Elec-

•

ployee and income from the exercise of your

tion To Exclude Church Employees From FICA

You ask the Internal Revenue Service

ministry is considered wages for income tax

Coverage, later, under Religious Workers.

(IRS) for an exemption from SE tax for

purposes. However, amounts received directly

your services and the IRS approves your

Rulings. Organizations and individuals may

from members of the congregation, such as fees

request. See Exemption From Self-Em-

request rulings from the IRS on whether they are

for performing marriages, baptisms, or other

ployment (SE) Tax, later.

religious orders, or members of a religious or-

personal services, are considered self-employ-

•

You are subject only to the social security

der, respectively, for FICA tax, SE tax, and fed-

ment income.

laws of a foreign country under the provi-

eral income tax withholding purposes. To

sions of a social security agreement be-

Example. A church hires and pays you a

request a ruling, follow the procedures in Reve-

tween the United States and that country.

salary to perform ministerial services subject to

nue Procedure 2002 – 1, which is published in

For more information, see Binational So-

its control. Under the common-law rules, you are

Internal Revenue Bulletin 2002 – 1.

cial Security (Totalization) Agreements in

an employee of the church while performing

You can read this Revenue Procedure at

Publication 54.

those services.

most IRS offices or, if you have a personal

Page 3

Publication 517 - Social Security And Other Information For Members Of The Clergy And Religious Workers - 2002 Page 3

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