Publication 517 - Social Security And Other Information For Members Of The Clergy And Religious Workers - 2011 Page 5
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30government, or any of their political subdi-
Pat’s services are not duties required by the
Orders, and Christian Science Practition-
visions. This is true even if you are per-
order. Her earnings are subject to social security
ers, for your 1986, 1987, 2000, or 2001
forming sacerdotal functions or conducting
and Medicare tax under FICA and to federal
tax year.
religious worship. (For example, if you per-
income tax.
•
You elected before 1968 to be covered
form services as a chaplain in the Armed
Chris’ services are considered duties re-
under social security for your ministerial
Forces of the United States, those serv-
quired by the order. He is acting as an agent of
services.
ices are not ministerial services.)
the order and not as an employee of a third
party. He does not include the earnings in gross
•
Services you perform in a government-
Requesting exemption.
Table 2
briefly sum-
income, and they are not subject to income tax
owned and operated hospital. (These
marizes the procedure for requesting exemption
withholding, social security and Medicare tax, or
services are considered performed by a
from the SE tax. More detailed explanations
SE tax.
government employee, not by a minister
follow.
as part of the ministry.) However, services
Christian Science
that you perform at a church-related hospi-
If you are a minister, member of a relig-
Practitioners and Readers
!
tal or health and welfare institution, or a
ious order, or Christian Science practi-
private nonprofit hospital, are considered
tioner, an approved exemption only
CAUTION
to be part of the ministry and are consid-
applies to earnings you receive for
ministerial
The exemption from SE tax, discussed next,
ered ministerial services.
services, discussed earlier. It does not apply to
applies only to the services a Christian Science
any other self-employment income.
practitioner or reader performs in the exercise of
his or her profession. If you do not have an
Books or articles. Writing religious books or
exemption, amounts you receive for performing
Members of the Clergy
articles is considered to be in the exercise of
these ministerial services are subject to SE tax.
your ministry and is considered a ministerial
To claim the exemption from SE tax, you must
service.
meet all of the following conditions.
This rule also applies to members of relig-
ious orders and to Christian Science practition-
Exemption From
•
You file Form 4361, described later under
ers and readers.
Requesting Exemption — Form
4361.
Self-Employment
•
Members of
You are conscientiously opposed to public
insurance because of your individual relig-
(SE) Tax
Religious Orders
ious considerations (not because of your
general conscience), or you are opposed
Services you perform as a member of a religious
You can request an exemption from SE tax if
because of the principles of your religious
order in the exercise of duties required by the
you are a member of the clergy (minister, mem-
denomination.
order are ministerial services. The services are
ber of a religious order, or Christian Science
•
considered ministerial because you perform
You file for other than economic reasons.
practitioner or reader) or a member of a recog-
them as an agent of the order.
nized religious sect.
•
You inform the ordaining, commissioning,
For example, if you are directed to perform
or licensing body of your church or order
Generally, members of religious orders
services for another agency of the supervising
that you are opposed to public insurance if
TIP
who have taken a vow of poverty are
church or an associated institution, you are con-
you are a minister or a member of a relig-
already exempt from paying SE tax, as
sidered to perform the services as an agent of
ious order (other than a vow-of-poverty
discussed earlier under
Members of Religious
the order.
member). This requirement does not apply
Orders
under Social Security Coverage. They
However, if you are directed to work outside
to Christian Science practitioners or read-
do not have to request the exemption.
the order, the employment will not be consid-
ers.
ered a duty required by the order unless:
Who cannot be exempt. You cannot be ex-
•
empt from SE tax if you made one of the follow-
You establish that the organization that or-
•
Your services are the kind that are ordi-
ing elections to be covered under social
dained, commissioned, or licensed you, or
narily performed by members of the order,
security. These elections are irrevocable.
your religious order, is a tax-exempt relig-
and
ious organization.
•
You elected to be covered under social
•
Your services are part of the duties that
•
security by filing Form 2031, Revocation of
You establish that the organization is a
must be exercised for, or on behalf of, the
Exemption From Self-Employment Tax for
church or a convention or association of
religious order as its agent.
Use by Ministers, Members of Religious
churches.
Effect of employee status. Ordinarily, if your
The Self-Employment Tax Exemption Application and
Table 2.
services are not considered directed or required
Approval Process
of you by the order, you and the outside party for
whom you work are considered employee and
employer. In this case, your earnings from the
Who Can Apply
services are taxed under the rules that apply to
Members of the Clergy
Members of Recognized
employees in general, not under the rules for
Religious Sects
services provided as agent for the order. This is
true even if you have taken a vow of poverty.
How
File Form 4361
File Form 4029
Example. Pat Brown and Chris Green are
When
File by the due date (including
File anytime
members of a religious order and have taken
extensions) of your income tax
vows of poverty. They renounce all claims to
return for the second tax year in
their earnings. The earnings belong to the order.
which you had at least $400 of net
Pat is a licensed attorney. The superiors of
earnings from self-employment (at
the order instructed her to get a job with a law
least part from ministerial services)
firm. Pat joined a law firm as an employee and,
as she requested, the firm made the salary pay-
Approval
If approved, you will receive an
If approved, you will receive an
ments directly to the order.
approved copy of Form 4361
approved copy of Form 4029
Chris is a secretary. The superiors of the
Effective
For all tax years after 1967 in which
First day of first quarter after the
order instructed him to accept a job with the
Date
you have at least $400 of net
quarter in which Form 4029 was
business office of the church that supervises the
earnings from self-employment
filed
order. Chris took the job and gave all his earn-
ings to the order.
Publication 517 (2011)
Page 5
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