Exemption from Self-Employment Tax (Form 4361): Who Qualifies and What You Get
Ministers with religious objections may be able to exempt their ministerial earnings from self-employment tax, but this decision is permanent.
This scheme allows certain ministers to avoid paying the self-employment tax on their ministerial earnings if they have religious or conscientious objections to public insurance.
Who it's for
This is for ministers who have a sincere religious objection to participating in public insurance programs or who are conscientiously opposed to them.
What you get
If approved, you will be exempt from paying the 15.3% self-employment tax on the money you earn through your ministry.
What it costs you
This is an irrevocable decision. By choosing this exemption, you permanently lose your eligibility for Social Security and Medicare coverage.
The catch to know
You must file the required paperwork within two years of beginning your ministry. Once you make this choice, you cannot undo it or change your mind later.
How to apply
- Determine if your religious objections meet the specific requirements for the exemption.
- Complete the necessary official form used to request the exemption.
- Submit your application to the relevant government tax authority.