File Form 4361 by the date your income tax return is due, including extensions, for the second tax year in which you have net earnings from self-employment of at least $400. This rule applies if any part of your net earnings for each of the 2 years came from your services. We also suggest to contact the Social Security office to determine the impact to your future benefits.
4361 Form and Instructions
To claim the exemption from SE tax, you must meet all of the following conditions.
• You file Form 4361
• You are conscientiously opposed to public insurance because of your individual religious considerations (not because of your general conscience), or you are opposed because of the principles of your religious denomination.
• You cannot file for economic reasons.
• You establish that the organization that ordained, commissioned, or licensed you, or your religious order, is a tax-exempt religious organization.
• You establish that the organization is a church or a convention or association of churches.
After you receive your approved Form 4361, you need to keep a copy with your important records. It is extremely difficult to get a copy from the IRS if it is lost. Once the exemption is approved, it is irrevocable.
Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations