Publication 517 (2005), Social Security and Other Information for Members of the Clergy and Religious Workers

Introduction

Social security and Medicare taxes are collected under two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the taxes. No earnings are subject to both systems.

Table 1. Are You Covered Under FICA or SECA?

Find your occupation in the left column and read across the table to find if you are covered under FICA or SECA. Do not rely on this table alone. Also read the discussion for your occupation in the following pages.

Occupation	Covered under FICA?	Covered under SECA?
Minister	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Member of a religious order who has not taken a vow of poverty	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Member of a religious order who has taken a vow of poverty	YES, if: Your order elected FICA coverage for its members, or You worked outside the order and the work was not required by, or done on behalf of, the order. NO, if neither of the above applies.*	NO. You are exempt.*
Christian Science practitioner or reader	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Religious worker (church employee)	NO, if your employer elected not to have you covered.	YES, if your employer elected not to have you covered under FICA. NO, if you are covered under FICA.
Member of a recognized religious sect	YES, if you are an employee and do not have an approved exemption from the IRS. NO, if you have this exemption.	YES, if you are self-employed and do not have an approved exemption from the IRS. NO, if you have this exemption.

* The exemption applies only to qualified services as defined later under Qualified Services.

Table 1. Are You Covered Under FICA or SECA?

Find your occupation in the left column and read across the table to find if you are covered under FICA or SECA. Do not rely on this table alone. Also read the discussion for your occupation in the following pages.

Occupation	Covered under FICA?	Covered under SECA?
Minister	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Member of a religious order who has not taken a vow of poverty	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Member of a religious order who has taken a vow of poverty	YES, if: Your order elected FICA coverage for its members, or You worked outside the order and the work was not required by, or done on behalf of, the order. NO, if neither of the above applies.*	NO. You are exempt.*
Christian Science practitioner or reader	NO. You are exempt.*	YES, if you do not have an approved exemption from the IRS. NO, if you have this exemption.*
Religious worker (church employee)	NO, if your employer elected not to have you covered.	YES, if your employer elected not to have you covered under FICA. NO, if you are covered under FICA.
Member of a recognized religious sect	YES, if you are an employee and do not have an approved exemption from the IRS. NO, if you have this exemption.	YES, if you are self-employed and do not have an approved exemption from the IRS. NO, if you have this exemption.

* The exemption applies only to qualified services as defined later under Qualified Services.

This publication covers the following topics about the collection of social security and Medicare taxes from members of the clergy and religious workers.

Which earnings are taxed under SECA and which under FICA. (See Table 1 to determine whether FICA or SECA applies.)
How a member of the clergy (minister, member of a religious order, or Christian Science practitioner) can apply for an exemption from self-employment tax.
How to figure net earnings from self-employment.

This publication also covers certain income tax rules of interest to the clergy.

A comprehensive example shows filled-in forms for a minister who has income taxed under SECA, other income taxed under FICA, and income tax reporting of items specific to the clergy.

New this year to Publication 517 is a set of worksheets that you can use to figure the amount of your taxable ministerial income and allowable deductions. You will find these worksheets near the end of the publication, right after the Comprehensive Example.

Note.

In this publication, the term “church” is generally used in its generic sense and not in reference to any particular religion.

Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

You can write to us at the following address:

Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

You can email us at *[email protected]. (The asterisk must be included in the address.) Please put “Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Tax questions. If you have a tax question, visit www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either of the addresses listed above.

Ordering forms and publications. Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the address shown under How To Get Tax Help in the back of this publication.

Useful Items - You may want to see:

Publication

54 Tax Guide for U.S. Citizens and Resident Aliens Abroad
525 Taxable and Nontaxable Income
529 Miscellaneous Deductions
535 Business Expenses
590 Individual Retirement Arrangements (IRAs)
596 Earned Income Credit (EIC)

Form (and Instructions)

SS-8
Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
SS-16
Certificate of Election of Coverage Under the Federal Insurance Contributions Act
Schedule SE (Form 1040)
Self-Employment Tax
1040-ES
Estimated Tax for Individuals
1040X
Amended U.S. Individual Income Tax Return
4029
Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits
4361
Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners

Publication 517 - Introductory Material

What's New

Reminder

Introduction

Useful Items - You may want to see: