Publication 517 - Social Security And Other Information For Members Of The Clergy And Religious Workers - 2011 Page 6
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30•
You did not make an election discussed
date, including extensions, for his 2011 income
4. The Commissioner of Social Security must
earlier under
Who cannot be
exempt.
tax return.
determine that:
•
You sign and return the statement the IRS
Death of individual. The right to file an appli-
a. Your sect or division has the estab-
mails to you to certify that you are request-
cation for exemption ends with an individual’s
lished teachings as in (2) above,
ing an exemption based on the grounds
death. A surviving spouse, executor, or adminis-
b. It is the practice, and has been for a
listed on the statement.
trator cannot file an exemption application for a
substantial period of time, for members
deceased clergy member.
of the sect or division to provide for their
Requesting Exemption —Form
Effective date of exemption. An approved
dependent members in a manner that is
4361
exemption is effective for all tax years after 1967
reasonable in view of the members’
in which you have $400 or more of net earnings
general level of living, and
To request exemption from SE tax, file Form
from self-employment and any part of those
c. The sect or division has existed at all
4361 in triplicate (original and two copies) with
earnings is for services as a member of the
times since December 31, 1950.
the IRS.
clergy. Once the exemption is approved, it is
irrevocable.
The IRS will return to you a copy of the
Form 4361 that you filed indicating
Example. Rev. Trudy Austin, ordained in
whether your exemption has been ap-
Requesting Exemption —Form
RECORDS
2008, had $400 or more in net self-employment
proved. If it is approved, keep the approved copy
4029
earnings as a minister in both 2008 and 2011.
in your permanent records.
She files an application for exemption on Febru-
To request the exemption, file Form 4029 in
When to file. File Form 4361 by the date your
ary 20, 2012. If an exemption is granted, it is
triplicate (original and two copies) with the So-
income tax return is due, including extensions,
effective for 2008 and the following years.
cial Security Administration at the address
for the second tax year in which you have net
Refunds of SE tax. If, after receiving an ap-
shown on the form. The sect or division must
earnings from self-employment of at least $400.
proved Form 4361, you find that you overpaid
complete part of the form.
This rule applies if any part of your net earnings
SE tax, you can file a claim for refund on Form
for each of the 2 years came from your services
The IRS will return to you a copy of the
1040X before the period of time for filing ends.
as a:
Form 4029 that you filed indicating
This is generally within 3 years from the date you
whether your exemption has been ap-
•
Minister,
RECORDS
filed the return or within 2 years from the date
proved. If it is approved, keep the approved copy
•
you paid the tax, whichever is later. A return you
Member of a religious order, or
in your permanent records.
filed, or tax you paid, before the due date is
•
When to file. You can file Form 4029 at any
Christian Science practitioner or reader.
considered to have been filed or paid on the due
time.
date.
The 2 years do not have to be consecutive tax
If you have an approved exemption from SE
If you file a claim after the 3-year period but
years.
tax and for some reason that approved exemp-
within 2 years from the time you paid the tax, the
tion ended, you must file a new Form 4029 if you
credit or refund will not be more than the tax you
The approval process can take some
subsequently meet the
eligibility
requirements,
paid within the 2 years immediately before you
TIP
time, so you should file Form 4361 as
discussed earlier. See Effective date of exemp-
file the claim.
soon as possible.
tion, next, for information on when the newly
approved exemption would become effective.
Members of Recognized
Example 1. Rev. Lawrence Jaeger, a cler-
If you have a previously approved exemp-
Religious Sects
g y m a n
o r d a i n e d
i n
2 0 1 1 ,
h a s
n e t
tion from SE tax and you change membership to
another recognized religious sect, without any
self-employment earnings of $450 in 2011 and
If you are a member of a recognized religious
change to your eligibility requirements, then you
$500 in 2012. He must file his application for
sect, or a division of a recognized religious sect,
do not need to file a new Form 4029.
exemption by the due date, including exten-
you can apply for an exemption from payment of
sions, for his 2012 income tax return. However,
social security and Medicare taxes on both your
Effective date of exemption. An approved
if Rev. Jaeger does not receive IRS approval for
self-employment income and the wages you
exemption generally is effective on the first day
an exemption by April 15, 2013, his SE tax for
earn from an employer who also has an exemp-
of the first quarter after the quarter in which
2012 is due by that date.
tion.
Form 4029 is filed. For example, if you meet all
eligibility requirements and file Form 4029 on
Example 2. Rev. Louise Wolfe has $300 in
Exception. If you received social security
January 30, 2012, and your exemption is ap-
net self-employment earnings as a minister in
benefits or payments, or anyone else received
proved, it will become effective on April 1, 2012.
2011, but earned more than $400 in 2010 and
these benefits or payments based on your
The exemption does not apply to any tax
expects to earn more than $400 in 2012. She
wages or self-employment income, you cannot
year beginning before you meet the
eligibility
must file her application for exemption by the
apply. However, if you pay your benefits back,
requirements
discussed earlier.
due date, including extensions, for her 2012
you may be considered for exemption. Contact
The exemption will end if you fail to meet the
your local Social Security Administration office
income tax return. However, if she does not
eligibility requirements or if the Commissioner of
receive IRS approval for an exemption by April
to find out the amount to be paid back.
Social Security determines that the sect or divi-
15, 2013, her SE tax for 2012 is due by that date.
Eligibility requirements. To claim this ex-
sion fails to meet them. You must notify the IRS
emption from SE tax, all the following require-
within 60 days if you are no longer a member of
Example 3. In 2009, Rev. David Moss was
ments must be met.
the religious group, or if you no longer follow the
ordained a minister and had $700 in net
established teachings of this group. The exemp-
self-employment earnings as a minister. In
1. You must file Form 4029, discussed later
tion will end on the date you notify the IRS.
2010, he received $1,000 as a minister, but his
under
Requesting Exemption — Form
related expenses were over $1,000. Therefore,
4029.
Refunds of SE tax paid. To get a refund of
he had no net self-employment earnings as a
any SE tax you paid while the exemption was in
2. As a follower of the established teachings
minister in 2010. Also in 2010, he opened a book
effect, file Form 1040X. For information on filing
of the sect or division, you must be consci-
store and had $8,000 in net self-employment
this form, see
Refunds of SE tax
under Request-
entiously opposed to accepting benefits of
earnings from the store. In 2011, he had net
ing Exemption — Form 4361, earlier.
any private or public insurance that makes
self-employment earnings of $1,500 as a minis-
payments for death, disability, old age, re-
ter and $10,000 net self-employment earnings
tirement, or medical care, or provides serv-
from the store.
Exemption From FICA Taxes
ices for medical care.
Rev. Moss had net earnings from
self-employment in 2009 and 2011 that were
3. You must waive all rights to receive any
Generally, under FICA, the employer and the
$400 or more each year, and part of the
social security payment or benefit and
employee each pay half of the social security
self-employment earnings in each of those
agree that no benefits or payments will be
and Medicare tax. Both the employee and the
years was for his services as a minister, so he
made to anyone else based on your wages
employer, if they meet the
eligibility require-
must file his application for exemption by the due
and self-employment income.
ments
discussed earlier, can apply to be exempt
Page 6
Publication 517 (2011)
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