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              Publication 517
              Cat. No. 15021X                                                  Contents
                                                                               Future Developments           . . . . . . . . . . . . 1
Department 
of the        Social Security                                                  What's New        . . . . . . . . . . . . . . . . . . 1
Treasury
Internal                                                                       Reminders . . . . . . . . . . . . . . . . . . . 2
Revenue       and Other 
Service                                                                        Introduction      . . . . . . . . . . . . . . . . . . 2
              Information for                                                  Social Security Coverage . . . . . . . . . . 3
                                                                               Ministerial Services        . . . . . . . . . . . . . 4
              Members of the 
                                                                               Exemption From Self-Employment 
                                                                                     (SE) Tax    . . . . . . . . . . . . . . . . . . 5
              Clergy and 
                                                                               Self-Employment Tax: Figuring Net 
                                                                                     Earnings      . . . . . . . . . . . . . . . . . 7
              Religious 
                                                                               Income Tax: Income and Expenses . . . . 9
              Workers                                                          Filing Your Return        . . . . . . . . . . . . .   11

                                                                               Retirement Savings Arrangements . . .                 11

              For use in preparing                                             Earned Income Credit (EIC)            . . . . . . .   12
                                                                               Worksheets        . . . . . . . . . . . . . . . . .   13
              2023 Returns
                                                                               How To Get Tax Help . . . . . . . . . . . .           14
                                                                               Index       . . . . . . . . . . . . . . . . . . . . . 17

                                                                               Future Developments
                                                                               For  the  latest  information  about  developments 
                                                                               related to Pub. 517, such as legislation enacted 
                                                                               after  this  publication  was  published,  go  to 
                                                                               IRS.gov/Pub517.

                                                                               What's New
                                                                               Temporary 100% deduction of the full meal 
                                                                               portion of a per diem rate or allowance.              The 
                                                                               100%  deduction  allowed  for  certain  business 
                                                                               meals  paid  or  incurred  after  2020  and  before 
                                                                               2023  has  expired.  See  Pub.  463  for  more  de-
                                                                               tails.
                                                                               Standard  mileage  rate.          The  business  stand-
                                                                               ard mileage rate for 2023 is 65.5 cents per mile.
                                                                               Earnings subject to social security tax.              For 
                                                                               2023,  the  maximum  wages  and  self-employ-
                                                                               ment income subject to social security tax has 
                                                                               increased to $160,200.
                                                                               Modified adjusted gross income (AGI) limit 
                                                                               for  traditional  IRA  contributions.         For  2023, 
                                                                               you  may  be  able  to  take  an  IRA  deduction  for 
                                                                               your contributions if you were covered by a re-
                                                                               tirement plan at work and your modified AGI is:
                                                                               •     Less than $136,000 if married filing jointly 
                                                                                     or qualifying surviving spouse;
                                                                               •     Less than $83,000 if single or head of 
              Get forms and other information faster and easier at:                  household; or
              • IRS.gov (English)         • IRS.gov/Korean (한국어)               •     Less than $10,000 if married filing sepa-
              • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)                rately.
              • IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt)    If  you  file  a  joint  return  and  either  you  or  your 
                                                                               spouse wasn't covered by a retirement plan at 

Dec 5, 2023

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work, you may be able to take an IRA deduction Table 1. Are Your Ministerial Earnings* Covered Under FICA or SECA?
if your modified AGI is less than $228,000.
Find the class to which you belong in the left column and read across
Modified AGI limit for Roth IRA contribu- the table to find if you are covered under FICA or SECA. Don't rely on
tions increased. For 2023, you may be able to this table alone. Also read the discussion for the class in the following
contribute to your Roth IRA if your modified AGI pages.
is:
• Less than $228,000 if married filing jointly Class Covered under FICA? Covered under SECA?
or qualifying surviving spouse;
• Less than $153,000 if single, head of Minister NO. Your ministerial earnings YES, if you don't have an
household, or married filing separately and are exempt. approved exemption from
you didn't live with your spouse at any time the IRS.
during the year; or
• Less than $10,000 if married filing sepa- NO, if you have an approved
rately and you lived with your spouse at exemption.
any time during the year.
Member of a religious order NO. Your ministerial earnings YES, if you don't have an
Earned income credit (EIC). For 2023, the who hasn't taken a vow of are exempt. approved exemption from
maximum amount of income you can earn and poverty the IRS.
still claim the EIC has increased. See Earned
Income Credit, later.
NO, if you have an approved
exemption.
Member of a religious order YES, if: NO. Your ministerial
Reminders who has taken a vow of • Your order elected FICA earnings are exempt.
Credits for self-employed persons. The re- poverty coverage for its
fundable credits for certain self-employed per- members; or
sons impacted by the coronavirus have expired. • You worked outside the
order and the work
Self-employed tax payments deferred in wasn't required by, or
2020. If you elected to defer the payment of
certain social security taxes in 2020, see done on behalf of, the
IRS.gov/Newsroom/How-Self-Employed- order.
Individuals-and-Household-Employers-Repay-
Deferred-Social-Security-Tax, for information on NO, if neither of the above
how to repay those taxes. applies.
Social security information. Social security Christian Science practitioner NO. Your ministerial earnings YES, if you don't have an
beneficiaries may quickly and easily obtain vari- or reader are exempt. approved exemption from
ous information from the Social Security Admin- the IRS.
istration’s (SSA) website with a my Social Se-
curity account, including getting a replacement NO, if you have an approved
Form SSA-1099 or SSA-1042S. For more infor- exemption.
mation, go to SSA.gov/myaccount.
Religious worker (church YES, if your employer didn't YES, if your employer
Photographs of missing children. The IRS is employee) elect to exclude you. elected to exclude you from
a proud partner with the National Center for FICA.
Missing & Exploited Children® (NCMEC). Pho- NO, if your employer elected
tographs of missing children selected by the
Center may appear in this publication on pages to exclude you. NO, if you are covered
that would otherwise be blank. You can help under FICA.
bring these children home by looking at the Member of a recognized YES, if you are an employee YES, if you are
photographs and calling 1-800-THE-LOST religious sect and don't have an approved self-employed and don't
(1-800-843-5678) if you recognize a child. exemption from the IRS. have an approved
exemption from the IRS.
Introduction NO, if you have an approved
exemption. NO, if you have an approved
Three federal taxes are paid on wages and exemption.
self-employment income—income tax, social
security tax, and Medicare tax. Social security * Ministerial earnings are the self-employment earnings that result from ministerial services, defined and discussed
and Medicare taxes are collected under one of later.
two systems. Under the Self-Employment Con-
tributions Act (SECA), the self-employed person compensation is separately compared to the • Members of a religious order.
pays all the taxes. Under the Federal Insurance threshold. Additional Medicare Tax applies to • Christian Science practitioners and read-
Contributions Act (FICA), the employee and the Medicare wages, RRTA compensation, and ers.
employer each pay half of the social security self-employment income that are more than: • Religious workers (church employees).
and Medicare taxes. No earnings are subject to • $125,000 if married filing separately, • Members of a recognized religious sect.
both systems. • $250,000 if married filing jointly, or
In addition, all wages and self-employment • $200,000 for any other filing status. Note. Unless otherwise noted, in this publi-
income that are subject to Medicare tax are There is no employer match for Additional Medi- cation references to members of the clergy in-
subject to a 0.9% Additional Medicare Tax to care Tax. For more information, see Form 8959, clude ministers, members of a religious order
the extent they exceed the applicable threshold Additional Medicare Tax, and its separate in- (but not members of a recognized religious
for an individual's filing status. Medicare wages structions. sect), and Christian Science practitioners and
and self-employment income are combined to This publication contains information for the readers.
determine if income exceeds the threshold. A following classes of taxpayers. This publication covers the following topics
self-employment loss isn't considered for Ministers. about the collection of social security and
purposes of this tax. Railroad retirement (RRTA) •

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Medicare taxes from members of the clergy, re-         529 529 Miscellaneous Deductions                                                                    later)  are  subject  to  self-employment  (SE)  tax 
                                                                                                                                                           unless one of the following applies.
ligious  workers,  and  members  of  a  recognized     590-A             590-A Contributions to Individual                                                 • You are a member of a religious order who 
religious sect.
• Which earnings are taxed under FICA and                  Retirement Arrangements (IRAs)                                                                    has taken a vow of poverty.
  which under SECA. See Table 1.                       590-B             590-B Distributions from Individual                                               • You ask the IRS for an exemption from SE 
• How a member of the clergy can apply for                 Retirement Arrangements (IRAs)                                                                    tax for your services and the IRS approves 
  an exemption from self-employment tax.                                                                                                                     your request. See Exemption From 
• How a member of a recognized religious               596 596 Earned Income Credit (EIC)                                                                    Self-Employment (SE) Tax, later.
  sect can apply for an exemption from both                                                                                                                • You are subject only to the social security 
  self-employment tax and FICA taxes.                Form (and Instructions)                                                                                 laws of a foreign country under the provi-
• How a member of the clergy or a religious            SS-8    SS-8 Determination of Worker Status for                                                       sions of a social security agreement be-
  worker figures net earnings from self-em-                Purposes of Federal Employment                                                                    tween the United States and that country. 
  ployment.                                                Taxes and Income Tax Withholding                                                                  For more information, see Bilateral Social 
                                                                                                                                                             Security (Totalization) Agreements in Pub. 
This publication also covers certain income            SS-16                   SS-16 Certificate of Election of Coverage                                     54, Tax Guide for U.S. Citizens and Resi-
tax rules of interest to ministers and members of          Under the Federal Insurance                                                                       dent Aliens Abroad.
a religious order.                                         Contributions Act
                                                                                                                                                           Your  earnings  that  aren't  from  ministerial 
       In the back of Pub. 517 is a set of work-       Schedule C (Form 1040)                       Schedule C (Form 1040) Profit or Loss                  services  may  be  subject  to  social  security  tax 
       sheets  that  you  can  use  to  figure  the        From Business (Sole Proprietorship)                                                             under FICA or SECA according to the rules that 
       amount  of  your  taxable  ministerial  in-
come and allowable deductions.                         Schedule SE (Form 1040)                                             Schedule SE (Form 1040)         apply  to  taxpayers  in  general.  See Ministerial 
                                                           Self-Employment Tax                                                                             Services, later.

Note.       In this publication, the term “church”     1040-ES                              1040-ES Estimated Tax for Individuals                          Ministers
is generally used in its generic sense and not in 
reference to any particular religion.                  1040-X                        1040-X Amended U.S. Individual Income 
                                                           Tax Return                                                                                      If you are a minister of a church, your earnings 
                                                                                                                                                           for the services you perform in your capacity as 
Comments  and  suggestions.      We  welcome           4029         4029 Application for Exemption From                                                    a minister are subject to SE tax, even if you per-
your comments about this publication and sug-
gestions for future editions.                              Social Security and Medicare Taxes                                                              form  these  services  as  an  employee  of  that 
                                                           and Waiver of Benefits                                                                          church. However, you can request that the IRS 
You  can  send  us  comments  through                                                                                                                      grant  you  an  exemption,  as  discussed  under 
IRS.gov/FormComments.  Or,  you  can  write  to        4361         4361 Application for Exemption From                                                    Exemption  From  Self-Employment  (SE)  Tax, 
the  Internal  Revenue  Service,  Tax  Forms  and          Self-Employment Tax for Use by                                                                  later.  For  the  specific  services  covered,  see 
Publications,  1111  Constitution  Ave.  NW,               Ministers, Members of Religious                                                                 Ministerial Services, later.
IR-6526, Washington, DC 20224.                             Orders and Christian Science 
Although  we  can’t  respond  individually  to             Practitioners                                                                                   Ministers  defined. Ministers  are  individuals 
each comment received, we do appreciate your           7206         7206 Self-Employed Health Insurance                                                    who  are  duly  ordained,  commissioned,  or  li-
feedback and will consider your comments and               Deduction                                                                                       censed  by  a  religious  body  constituting  a 
suggestions as we revise our tax forms, instruc-                                                                                                           church or church denomination. Ministers have 
tions,  and  publications. Don’t  send  tax  ques-     8274         8274 Certification by Churches and                                                     the authority to conduct religious worship, per-
tions, tax returns, or payments to the above ad-           Qualified Church-Controlled                                                                     form sacerdotal functions, and administer ordi-
dress.                                                     Organizations Electing Exemption                                                                nances or sacraments according to the prescri-
                                                           From Employer Social Security and                                                               bed  tenets  and  practices  of  that  church  or 
Getting  answers  to  your  tax  questions.                Medicare Taxes                                                                                  denomination.
If you have a tax question not answered by this 
publication or the How To Get Tax Help section         8959         8959 Additional Medicare Tax                                                           If  a  church  or  denomination  ordains  some 
                                                                                                                                                           ministers  and  licenses  or  commissions  others, 
at the end of this publication, go to the IRS In-      8962         8962 Premium Tax Credit (PTC)                                                          anyone licensed or commissioned must be able 
teractive  Tax  Assistant  page  at   IRS.gov/
Help/ITA where you can find topics by using the                                                                                                            to  perform  substantially  all  the  religious  func-
search feature or viewing the categories listed.     Ordering publications and forms.                                                              See How tions of an ordained minister to be treated as a 
                                                     To Get Tax Help, at the end of this publication,                                                      minister for social security purposes.
Getting tax forms, instructions, and pub-            for information about getting these publications 
lications.  Go  to  IRS.gov/Forms  to  download      and forms.                                                                                            Employment status for other tax purposes. 
current  and  prior-year  forms,  instructions,  and                                                                                                       Even though all of your income from performing 
publications.                                                                                                                                              ministerial  services  is  subject  to  self-employ-
Ordering  tax  forms,  instructions,  and            Social Security                                                                                       ment  tax  for  social  security  tax  purposes,  you 
                                                                                                                                                           may  be  an  employee  for  income  tax  or  retire-
publications.  Go to IRS.gov/OrderForms to or-       Coverage                                                                                              ment  plan  purposes  in  performing  those  same 
der  current  forms,  instructions,  and  publica-                                                                                                         services. For income tax or retirement plan pur-
tions;  call  800-829-3676  to  order  prior-year    This section gives information about which sys-                                                       poses, your income earned as an employee will 
forms  and  instructions.  The  IRS  will  process   tem (SECA or FICA) is used to collect social se-                                                      be considered wages.
your  order  for  forms  and  publications  as  soon curity and Medicare taxes from members of the 
as possible. Don’t   resubmit requests you’ve al-    clergy (ministers, members of a religious order,                                                      Common-law          employee. Under     com-
ready sent us. You can get forms and publica-        and  Christian  Science  practitioners  and  read-                                                    mon-law  rules,  you  are  considered  either  an 
tions faster online.                                 ers) and religious workers (church employees).                                                        employee or a self-employed person. Generally, 
                                                                                                                                                           you are an employee if you perform services for 
                                                                                                                                                           someone who has the legal right to control both 
Useful Items                                         Coverage of Members of the                                                                            what you do and how you do it, even if you have 
You may want to see:
                                                     Clergy                                                                                                considerable discretion and freedom of action. 
                                                                                                                                                           For  more  information  about  the  common-law 
Publication                                          The services you perform in the exercise of your                                                      rules, see Pub. 15-A, Employer's Supplemental 
     54 54 Tax Guide for U.S. Citizens and           ministry, of the duties required by your religious                                                    Tax Guide.
        Resident Aliens Abroad                       order, or of your profession as a Christian Sci-                                                      If a congregation employs you and pays you 
                                                     ence  practitioner  or  reader  are  covered  by  so-                                                 a salary, you are generally a common-law em-
    525 525 Taxable and Nontaxable Income            cial  security  and  Medicare  under  SECA.  Your                                                     ployee  and  income  from  the  exercise  of  your 
                                                     earnings for these                             ministerial services (defined                          ministry  is  wages  for  income  tax  purposes. 
Publication 517 (2023)                                                                                                                                                                             Page 3

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However, amounts received directly from mem- for the amount you turn over to the order. See For more information about making this elec-
bers of the congregation, such as fees for per- Pub. 526, Charitable Contributions. tion, see Form 8274.
forming marriages, baptisms, or other personal
services, aren't wages; such amounts are Rulings. Organizations and individuals may Election by Certain Church
self-employment income for both income tax request rulings from the IRS on whether they Employees Who Are Opposed to
purposes and social security tax purposes. are religious orders, or members of a religious
order, respectively, for FICA tax, SE tax, and Social Security and Medicare
Example. A church hires and pays you a federal income tax withholding purposes. To re- You may be able to choose to be exempt from
salary to perform ministerial services subject to quest a ruling, follow the procedures in Revenue social security and Medicare taxes, including
its control. Under the common-law rules, you Procedure 2023-1. To find the revenue proce- the SE tax, if you are a member of a recognized
are an employee of the church while performing dure, go to IRS.gov and type “Revenue Proce- religious sect or division and work for a church
those services. dure 2023-1” in the search box. (or church-controlled nonprofit division) that
Form SS-8. If you aren't certain whether doesn't pay the employer's part of the social se-
you are an employee or a self-employed per- Christian Science Practitioners curity tax on wages. This exemption doesn't ap-
son, you can get a determination from the IRS and Readers ply to your service, if any, as a minister of a
by filing Form SS-8. church or as a member of a religious order.
Generally, your earnings from services you per-
Members of Religious Orders form in your profession as a Christian Science Make this choice by filing Form 4029. See
practitioner or reader are subject to SE tax. Requesting Exemption—Form 4029, later, un-
If you are a member of a religious order who However, you can request an exemption, as dis- der Members of Recognized Religious Sects.
hasn't taken a vow of poverty, your earnings for cussed under Exemption From Self-Employ-
ministerial services you perform as a member of ment (SE) Tax, later. U.S. Citizens and Resident
the order are subject to SE tax. See Ministerial and Nonresident Aliens
Services, later. However, you can request that Practitioners. Christian Science practitioners
the IRS grant you an exemption, as discussed are members in good standing of the Mother
under Exemption From Self-Employment (SE) Church, The First Church of Christ, Scientist, in To be covered under the SE tax provisions
Tax, later. Boston, Massachusetts, who practice healing (SECA), individuals must generally be citizens
according to the teachings of Christian Science. or resident aliens of the United States. Nonresi-
Vow of poverty. If you are a member of a reli- State law specifically exempts Christian Sci- dent aliens aren't covered under SECA unless a
gious order and have taken a vow of poverty, ence practitioners from licensing requirements. social security agreement in effect between the
you are already exempt from paying SE tax on Some Christian Science practitioners are United States and the foreign country deter-
your earnings for ministerial services you per- also Christian Science teachers or lecturers. In- mines that they are covered under the U.S. so-
form as an agent of your church or its agencies. come from teaching or lecturing is considered cial security system.
You don't need to request a separate exemp- the same as income from their work as practi- To determine your alien status, see Pub.
tion. For income tax purposes, the earnings are tioners. 519, U.S. Tax Guide for Aliens.
tax free to you. Your earnings are considered
the income of the religious order. Readers. For tax purposes, Christian Science Residents of Puerto Rico, the U.S. Virgin Is-
readers are considered the same as ordained, lands, Guam, the Commonwealth of the
Services covered under FICA at the elec- commissioned, or licensed ministers. Northern Mariana Islands (CNMI), and
tion of the order. However, even if you have American Samoa. If you are a resident of one
taken a vow of poverty, the services you per- of these U.S. territories but not a U.S. citizen, for
form for your church or its agencies may be cov- Coverage of Religious
SE tax purposes you are treated the same as a
ered under social security. Your services are Workers (Church citizen or resident alien of the United States. For
covered if your order, or an autonomous subdi- Employees) information on figuring the tax, see Self-Em-
vision of the order, elects social security cover- ployment Tax: Figuring Net Earnings, later.
age for its current and future vow-of-poverty If you are a religious worker (a church em-
members. ployee) and aren't in one of the classes already
The order or subdivision elects coverage by discussed, your wages are generally subject to Ministerial Services
filing Form SS-16. The election may cover cer- social security and Medicare tax under FICA,
tain vow-of-poverty members for a retroactive not SECA. Some exceptions are discussed Ministerial services, in general, are the services
period of up to 20 calendar quarters before the next. you perform in the exercise of your ministry, in
quarter in which it files the certificate. If the elec-
tion is made, the order or subdivision pays both the exercise of your duties as required by your
the employer's and employee's share of the tax. Election by Church To Exclude Its religious order, or in the exercise of your profes-
You don't pay any of the FICA tax. Employees From FICA Coverage sion as a Christian Science practitioner or
reader. Income you receive for performing min-
Services performed outside the order. Churches and qualified church-controlled or- isterial services is subject to SE tax unless you
Even if you are a member of a religious order ganizations (church organizations) that are op- have an exemption, as explained later. Even if
who has taken a vow of poverty and the order posed for religious reasons to the payment of you have an exemption, only the income you re-
requires you to turn over amounts you earn, social security and Medicare taxes may elect to ceive for performing ministerial services is ex-
your earnings are subject to federal income tax exclude their employees from FICA coverage. If empt. The exemption doesn't apply to any other
and either SE tax or FICA tax (including estima- your employer makes this election, it doesn't income.
ted tax payments and/or withholding) if you: pay the employer's portion of the FICA taxes or The following discussions provide more de-
• Are self-employed or an employee of an or- withhold from your pay your portion of the FICA tailed information on ministerial services of min-
ganization outside your religious commun- taxes. Instead, your wages are subject to SECA isters, members of a religious order, and Chris-
ity; and and you must pay SE tax on your wages if they tian Science practitioners and readers.
• Perform work not required by, or done on exceed $108.28 during the tax year. However,
behalf of, the order. you can request an exemption from SE tax if
In these cases, your income from self-em- you are a member of a recognized religious Ministers
ployment or as an employee of that outside or- sect, as discussed below.
ganization is taxable to you directly. You may, Most services you perform as a minister, priest,
however, be able to take a charitable deduction Churches and church organizations make rabbi, etc., are ministerial services. These serv-
this election by filing two copies of Form 8274. ices include:
• Performing sacerdotal functions;
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• Conducting religious worship; and Table 2. The Self-Employment Tax Exemption Application and Approval
• Controlling, conducting, and maintaining Process
religious organizations (including the reli-
gious boards, societies, and other integral Who Can Apply
agencies of such organizations) that are Members of the Clergy Members of Recognized Religious
under the authority of a religious body that
is a church or denomination. Sects
You are considered to control, conduct, and How File Form 4361 File Form 4029
maintain a religious organization if you direct, When File by the due date (including File anytime
manage, or promote the organization's activi- extensions) of your income tax return
ties. for the second tax year in which you
A religious organization is under the author- had at least $400 of net earnings from
ity of a religious body that is a church or de- self-employment, any of which came
nomination if it’s organized for, and dedicated from ministerial services
to, carrying out the principles of a faith accord- Approval If approved, you will receive an If approved, you will receive an
ing to the requirements governing the creation approved copy of Form 4361 approved copy of Form 4029
of institutions of the faith.
Effective For all tax years after 1967 in which For all tax years beginning with the
Services for nonreligious organizations. Date you have at least $400 of net earnings first year you meet the eligibility
Your services for a nonreligious organization are from self-employment, any of which requirements, discussed later
ministerial services if the services are assigned came from ministerial services
or designated by your church. Assigned or des-
ignated services qualify even if they don't in- Members of Religious Pat's services aren't duties required by the
volve performing sacerdotal functions or con- order. Pat’s earnings are subject to social secur-
ducting religious worship. Orders ity and Medicare tax under FICA and to federal
If your services aren't assigned or designa- income tax.
ted by your church, they are ministerial services Services you perform as a member of a reli- Chris' services are duties required by the or-
only if they involve performing sacerdotal func- gious order in the exercise of duties required by der. Chris is acting as an agent of the order and
tions or conducting religious worship. the order are ministerial services. The services not as an employee of a third party. Chris
are considered ministerial because you perform doesn't include the earnings in gross income,
Services that aren't part of your ministry. them as an agent of the order. and they aren't subject to income tax withhold-
Income from services you perform as an em- For example, if the order directs you to per- ing or to social security and Medicare tax under
ployee that aren't ministerial services is subject form services for another agency of the super- FICA or SECA.
to social security and Medicare tax withholding vising church or an associated institution, you
under FICA (not SECA) under the rules that ap- are considered to perform the services as an Christian Science
ply to employees in general. The following aren't agent of the order. Practitioners and Readers
ministerial services.
• Services you perform for nonreligious or- However, if the order directs you to work out- Services you perform as a Christian Science
ganizations other than the services stated side the order, this employment won't be con- practitioner or reader in the exercise of your pro-
above. sidered a duty required by the order unless: fession are ministerial services. Amounts you
• Services you perform as a duly ordained, • Your services are the kind that are ordina- receive for performing these services are gener-
commissioned, or licensed minister of a rily performed by members of the order; ally subject to SE tax. You may request an ex-
church as an employee of the United and emption from SE tax, discussed next, which ap-
States, the District of Columbia, a foreign • Your services are part of the duties that plies only to those services.
government, or any of their political subdi- must be exercised for, or on behalf of, the
visions. These services aren't ministerial religious order as its agent.
services even if you are performing sacer-
dotal functions or conducting religious wor- Effect of employee status. Ordinarily, if your Exemption From
ship. (For example, if you perform services services aren't considered directed or required Self-Employment (SE)
as a chaplain in the Armed Forces of the of you by the order, you and the outside party
United States, those services aren't minis- for whom you work are considered employee Tax
terial services.) and employer. In this case, your earnings from
• Services you perform in a govern- the services are taxed under the rules that apply You can request an exemption from SE tax if
ment-owned and operated hospital. to employees in general, not under the rules for you are a member of the clergy (minister, mem-
(These services are considered performed services performed as an agent of the order. ber of a religious order, or Christian Science
by a government employee, not by a minis- This result is true even if you have taken a vow practitioner or reader) or a member of a recog-
ter as part of the ministry.) However, serv- of poverty. nized religious sect.
ices that you perform at a church-related
hospital or health and welfare institution, or Example. Pat Brown and Chris Green are Generally, members of religious orders
a private nonprofit hospital, are considered members of a religious order and have taken TIP who have taken a vow of poverty are al-
to be part of the ministry and are consid- vows of poverty. They renounce all claims to ready exempt from paying SE tax, as
ered ministerial services. their earnings. The earnings belong to the or- discussed earlier under Members of Religious
der. Orders under Social Security Coverage. They
Books or articles. Writing religious books or Pat is a licensed attorney. The superiors of don't have to request the exemption.
articles is considered to be in the exercise of the order instructed Pat to get a job with a law
your ministry and is considered a ministerial firm. Pat joined a law firm as an employee and, Who can't be exempt. You can't be exempt
service. as requested, the firm made the salary pay- from SE tax if you made one of the following
This rule also applies to members of reli- ments directly to the order. elections to be covered under social security.
gious orders and to Christian Science practi- Chris is a secretary. The superiors of the or- These elections are irrevocable.
tioners and readers. der instructed Chris to accept a job with the • You elected to be covered under social se-
business office of the church that supervises curity by filing Form 2031, Revocation of
the order. Chris took the job and gave all earn- Exemption From Self-Employment Tax for
ings to the order.
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Use by Ministers, Members of Religious 1. You have net earnings from self-employ- clergy. Once the exemption is approved, it is ir-
Orders, and Christian Science Practition- ment of at least $400. revocable.
ers, for your 1986, 1987, 2000, or 2001 tax 2. Any part of those net earnings was from Example. Rev. Hayden Austin, ordained in
year. ministerial services you performed as a: 2020, had $400 or more in net self-employment
• You elected before 1968 to be covered un-
der social security for your ministerial serv- a. Minister, earnings, in both 2020 and 2023, part of which
was from their services as a minister. Rev. Aus-
ices. b. Member of a religious order, or tin files an application for exemption on Febru-
Requesting exemption. Table 2 briefly sum- c. Christian Science practitioner or ary 19, 2024. If an exemption is granted, it is ef-
marizes the procedure for requesting exemption reader. fective for 2020 and the following years.
from the SE tax. More detailed explanations fol-
low. The 2 years don't have to be consecutive tax Refunds of SE tax. If, after receiving an ap-
years. proved Form 4361, you find that you overpaid
If you are a minister, member of a reli- SE tax, you can file a claim for refund on Form
The approval process can take some
! gious order, or Christian Science prac- TIP time, so you should file Form 4361 as 1040-X. Generally, for a refund, you must file
CAUTION titioner, an approved exemption only
applies to earnings you receive for ministerial soon as possible. Form 1040-X within 3 years from the date you
filed the return or within 2 years from the date
services, discussed earlier. It doesn't apply to you paid the tax, whichever is later. A return you
any other self-employment income. Example 1. Rev. Taylor Jaeger, a member filed, or tax you paid, before the due date is
of the clergy ordained in 2023, has net self-em- considered to have been filed or paid on the
ployment earnings as a minister of $450 in 2023 due date.
and $500 in 2024. Rev. Jaeger must file their If you file a claim after the 3-year period but
Members of the Clergy application for exemption by the due date, in- within 2 years from the time you paid the tax,
cluding extensions, for their 2024 income tax re- the credit or refund won't be more than the tax
To claim the exemption from SE tax, you must turn. However, if Rev. Jaeger doesn’t receive you paid within the 2 years immediately before
meet all of the following conditions. IRS approval for an exemption by April 15, you file the claim.
• You file Form 4361, described below under 2025, their SE tax for 2024 is due by that date.
Requesting Exemption—Form 4361.
• You are conscientiously opposed to public Example 2. Rev. Casey Wolfe has only Members of Recognized
insurance because of your individual reli- $300 in net self-employment earnings as a min- Religious Sects
gious considerations (not because of your ister in 2023, but earned more than $400 in
general conscience), or you are opposed 2022 and expects to earn more than $400 in If you are a member of a recognized religious
because of the principles of your religious 2024. Rev. Wolfe must file their application for sect, or a division of a recognized religious sect,
denomination. exemption by the due date, including exten- you can apply for an exemption from payment of
• You file for other than economic reasons. sions, for their 2024 income tax return. How- social security and Medicare taxes on both your
• You inform the ordaining, commissioning, ever, if Rev. Wolfe doesn't receive IRS approval self-employment income and the wages you
or licensing body of your church or order for an exemption by April 15, 2025, their SE tax earn from an employer who also has an exemp-
that you are opposed to public insurance if for 2024 is due by that date. tion.
you are a minister or a member of a reli-
gious order (other than a vow-of-poverty Example 3. In 2021, Rev. Riley Moss was Exception. If you received social security ben-
member). This requirement doesn't apply ordained a minister and had $700 in net efits or payments, or anyone else received
to Christian Science practitioners or read- self-employment earnings as a minister. In these benefits or payments based on your wa-
ers. 2022, Rev. Moss received $1,000 as a minister, ges or self-employment income, you can't apply.
• You establish that the organization that or- but their related expenses were over $1,000. However, if you pay your benefits back, you may
dained, commissioned, or licensed you, or Therefore, they had no net self-employment be considered for exemption. Contact your local
your religious order, is a tax-exempt reli- earnings as a minister in 2022. Also in 2022, SSA office to find out the amount you must pay
gious organization. Rev. Moss opened a bookstore and had $8,000 back.
• You establish that the organization is a in net self-employment earnings from the store.
church or a convention or association of In 2023, they had net self-employment earnings Eligibility requirements. To claim this ex-
churches. of $1,500 as a minister and $10,000 net emption from SE tax, all of the following require-
• You didn't make an election, discussed self-employment earnings from the store. ments must be met.
earlier under Who can't be exempt. Rev. Moss had net earnings from self-em-
• You sign and return the statement the IRS ployment in 2021 and 2023 that were $400 or 1. You must file Form 4029, discussed later
mails to you to certify that you are request- more each year, and part of the self-employ- under Requesting Exemption—Form
ing an exemption based on the grounds lis- ment earnings in each of those years was for 4029.
ted on the statement. their services as a minister. Thus, Rev. Moss 2. As a follower of the established teachings
must file their application for exemption by the of the sect or division, you must be consci-
due date, including extensions, for their 2023 in- entiously opposed to accepting benefits of
Requesting Exemption—Form come tax return. However, if Rev. Moss doesn’t any private or public insurance that makes
4361 receive IRS approval for an exemption by April payments for death, disability, old age, re-
15, 2024, their SE tax for 2023 is due by that tirement, or medical care, or provides
To request exemption from SE tax, file Form date. services for medical care.
4361 in triplicate (original and two copies) with
the IRS. Death of individual. The right to file an appli- 3. You must waive all rights to receive any so-
The IRS will return to you a copy of the cation for exemption ends with an individual's cial security payment or benefit and agree
Form 4361 that you filed indicating death. A surviving spouse, executor, or adminis- that no benefits or payments will be made
RECORDS whether it has approved your exemp- trator can't file an exemption application for a to anyone else based on your wages and
tion. If it’s approved, keep the approved copy of deceased clergy member. self-employment income.
Form 4361 in your permanent records. 4. The Commissioner of Social Security must
Effective date of exemption. An approved ex- determine that:
emption is effective for all tax years after 1967 in
When to file. File Form 4361 by the date your which you have $400 or more of net earnings a. Your sect or division has the estab-
income tax return is due, including extensions, from self-employment and any part of those lished teachings as described in (2)
for the second tax year in which both of the fol- earnings is for services as a member of the above;
lowing are true.

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b. It is the practice, and has been for a exempt from their share of FICA taxes on wages Regular Method
substantial period of time, for mem- paid by the employer to the employee.
bers of the sect or division to provide Most people use the regular method. Under this
for their dependent members in a A partnership in which each partner holds a method, figure your net earnings from self-em-
manner that is reasonable in view of religious exemption from social security and ployment by totaling your gross income for serv-
the members' general level of living; Medicare tax is an employer for this purpose. ices you performed as a minister, a member of
and If the employer's application is ap- a religious order who hasn't taken a vow of pov-
c. The sect or division has existed at all TIP proved, the exemption will apply only to erty, or a Christian Science practitioner or
times since December 31, 1950. FICA taxes on wages paid to employ- reader. Then, subtract your allowable business
ees who also received an approval of identical deductions and multiply the difference by
Requesting Exemption—Form applications. 92.35% (0.9235). Use Schedule SE (Form
1040) to figure your net earnings and SE tax.
4029
Information for employers. If you have an If you are an employee of a church that elec-
To request the exemption, file Form 4029 in trip- approved Form 4029 and you have an em- ted to exclude you from FICA coverage, figure
licate (original and two copies) with the SSA at ployee who has an approved Form 4029, don't net earnings by multiplying your church wages
the address shown on the form. The sect or di- report wages you paid to the employee as so- shown on Form W-2 by 92.35% (0.9235). Don't
vision must complete part of the form. cial security and Medicare wages. reduce your wages by any business deductions
The IRS will return to you a copy of the If you have an employee who doesn't have when making this computation. Use Sched-
Form 4029 that you filed indicating an approved Form 4029, you must withhold the ule SE (Form 1040), to figure your net earnings
RECORDS whether it has approved your exemp- employee's share of social security and Medi- and SE tax.
tion. If it is approved, keep the approved copy of care taxes and pay the employer's share. If you have an approved exemption, or
Form 4029 in your permanent records. Form W-2. When preparing a Form W-2, ! you are automatically exempt, don't in-
Wage and Tax Statement, for an employee with CAUTION clude the income or deductions from
When to file. You can file Form 4029 at any an approved Form 4029, enter “Form 4029” in ministerial services in figuring your net earnings
time. box 14, “Other.” Don't make any entries in box 3, from self-employment.
If you have an approved exemption from SE 4, 5, or 6.
tax and for some reason that approved exemp- Forms 941, 943, and 944. If both you and Amounts included in gross income. To fig-
tion ended, you must file a new Form 4029 if your employee have received approved Forms ure your net earnings from self-employment (on
you subsequently meet the eligibility require- 4029, don't include these exempt wages on the Schedule SE (Form 1040)), include in gross in-
ments, discussed earlier. See Effective date of following forms. Instead, follow the instructions come:
exemption, next, for information on when the given below. 1. Salaries and fees for your ministerial serv-
newly approved exemption would become ef- • Form 941, Employer's QUARTERLY Fed- ices (discussed earlier);
fective. eral Tax Return: check the box on line 4 2. Offerings you receive for marriages, bap-
If you have a previously approved exemption and enter “Form 4029” in the empty space tisms, funerals, masses, etc.;
from SE tax, you are considered to have met the below the checkbox.
requirements for exemption from social security • Form 943, Employer's Annual Federal Tax 3. The value of meals and lodging provided
and Medicare taxes on wages and don't need to Return for Agricultural Employees: enter to you, your spouse, and your dependents
file a new Form 4029. “Form 4029” on the dotted line next to the for your employer's convenience;
lines 2 and 4 entry spaces.
Effective date of exemption. An approved ex- • Form 944, Employer's ANNUAL Federal 4. The fair rental value of a parsonage provi-
emption from SE tax is generally effective for all Tax Return: check the box on line 3 and ded to you (including the cost of utilities
tax years beginning with the first year you meet enter “Form 4029” in the empty space be- that are furnished) and the rental allow-
the eligibility requirements discussed earlier. low the checkbox. ance (including an amount for payment of
(For example, if you meet the eligibility require- utilities) paid to you; and
ments in 2021, file Form 4029 in 2022, and the Effective date. An approved exemption 5. Any amount a church pays toward your in-
IRS approves your exemption in 2023, your ex- from FICA becomes effective on the first day of come tax or SE tax, other than withholding
emption is effective for tax year 2021 and all the first calendar quarter after the quarter in the amount from your salary. This amount
later years.) which you file Form 4029. The exemption will is also subject to income tax.
The exemption will end if you fail to meet the end on the last day of the calendar quarter be-
eligibility requirements or if the Commissioner of fore the quarter in which the employer, em- For the income tax treatment of items (2)
Social Security determines that the sect or divi- ployee, sect, or division fails to meet the re- and (4), see Income Tax: Income and Expen-
sion fails to meet them. You must notify the IRS quirements. ses, later.
within 60 days if you are no longer a member of
the religious group, or if you no longer follow the Example. Pastor Leslie Adams receives an
established teachings of this group. The exemp- Self-Employment Tax: annual salary of $39,000 as a full-time minister.
tion will end for the tax year in which you or your The $39,000 includes $5,000 that is designated
sect/division first fails to meet the eligibility re- Figuring Net Earnings as a rental allowance to pay utilities. Their
quirements. church owns a parsonage that has a fair rental
There are two methods for figuring your net value of $12,000 per year. The church gives
Refunds of SE tax paid. To get a refund of earnings from self-employment as a member of Pastor Adams the use of the parsonage. Pastor
any SE tax you paid while the exemption was in the clergy or a religious worker. Adams isn’t exempt from SE tax and must in-
effect, file Form 1040-X. For information on filing • Regular method. clude $51,000 ($39,000 plus $12,000) when fig-
this form, see Refunds of SE tax under Re- • Nonfarm optional method. uring their net earnings for SE tax purposes.
The results would be the same if, instead of
questing Exemption—Form 4361, earlier. You may find Worksheets 1 through 3 the use of the parsonage and receipt of the
TIP helpful in figuring your net earnings rental allowance for utilities, Pastor Adams had
Exemption From FICA Taxes from self-employment. Blank work- received an annual salary of $51,000 of which
sheets are in the back of this publication. $17,000 ($5,000 plus $12,000) per year was
Generally, under FICA, the employer and the designated as a rental allowance.
employee each pay half of the social security
and Medicare tax. Both the employee and the Overseas duty. Your net earnings from
employer, if they meet the eligibility require- self-employment are determined without any
ments, discussed earlier, can apply to be foreign earned income exclusion or the foreign
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housing exclusion or deduction if you are a U.S. aren't sure if it reimburses you using an ac- rate for the social security part is 12.4%. In ad-
citizen or resident alien serving abroad and liv- countable or a nonaccountable plan. dition, all of your net earnings are subject to the
ing in a foreign country. Medicare (hospital insurance) part of the SE
For information on excluding foreign earned Accountable plans. To be an accountable tax. This tax rate is 2.9%. The combined
income or the foreign housing amount, see Pub. plan, your employer's reimbursement arrange- self-employment tax rate is 15.3% (12.4% so-
54. ment must include all three of the following cial security tax + 2.9% Medicare tax).
rules.
Example. You were the minister of a U.S. • Your expenses must have a business con- Additional Medicare Tax. A 0.9% Additional
church in Mexico. You earned $35,000 in that nection—that is, you must have paid or in- Medicare Tax applies to Medicare wages, RRTA
position and were able to exclude it all for in- curred deductible expenses while perform- compensation, and self-employment income
come tax purposes under the foreign earned in- ing services as an employee of your that are more than:
come exclusion. The United States doesn't employer. • $125,000 if married filing separately,
have a social security agreement with Mexico, • You must adequately account to your em- • $250,000 if married filing jointly, or
so you are subject to U.S. SE tax and must in- ployer for these expenses within a reason- • $200,000 for any other filing status.
clude $35,000 when figuring net earnings from able period of time.
self-employment. • You must return any excess reimbursement Medicare wages and self-employment income
or allowance within a reasonable period of are combined to determine if income exceeds
Specified U.S. territories. The exclusion from time. the threshold. A self-employment loss isn't con-
sidered for purposes of this tax. RRTA compen-
gross income for amounts derived from Ameri- The reimbursement isn't reported on your sation is separately compared to the threshold.
can Samoa or Puerto Rico doesn't apply in fig- Form W-2. Generally, if your expenses equal For more information, see Form 8959, Addi-
uring net earnings from self-employment. Also your reimbursement, you have no deduction. If tional Medicare Tax, and its separate instruc-
see Residents of Puerto Rico, the U.S. Virgin Is- your expenses are more than your reimburse- tions.
lands, Guam, the Commonwealth of the North- ment, you can deduct your excess expenses for
ern Mariana Islands (CNMI), and American Sa- SE tax and income tax purposes.
moa, earlier, under U.S. Citizens and Resident Nonfarm Optional Method
and Nonresident Aliens. Nonaccountable plan. A nonaccountable
plan is a reimbursement arrangement that You may be able to use the nonfarm optional
Amounts not included in gross income. doesn't meet one or more of the three rules lis- method for figuring your net earnings from
Don't include the following amounts in gross in- ted under Accountable plans above. In addition, self-employment. In general, the nonfarm op-
come when figuring your net earnings from even if your employer has an accountable plan, tional method is intended to permit continued
self-employment. the following payments will be treated as being coverage for social security and Medicare pur-
• Offerings that others made to the church. paid under a nonaccountable plan. poses when your income for the tax year is low.
• Contributions by your church to a tax-shel- • Excess reimbursements you fail to return to
tered annuity plan set up for you, including your employer. You may use the nonfarm optional method if
any salary reduction contributions (elective • Reimbursement of nondeductible expen- you meet all of the following tests.
deferrals) that aren't included in your gross ses related to your employer's business.
income. Your employer will combine any reimburse- 1. You are self-employed on a regular basis.
• Pension payments or retirement allowan- ment paid to you under a nonaccountable plan You meet this test if your actual net earn-
ces you receive for your past ministerial with your wages, salary, or other compensation ings from self-employment were $400 or
services. and report the combined total in box 1 of your more in at least 2 of the 3 tax years before
• The rental value of a parsonage or a par- Form W-2. Because reimbursements under a the one for which you use this method.
sonage allowance provided to you after nonaccountable plan are included in your gross The net earnings can be from either farm
you retire. income, you can deduct your related expenses or nonfarm earnings or both.
(for SE tax and income tax purposes) regard- 2. You have used this method less than 5
Allowable deductions. When figuring your less of whether they are more than, less than, or prior years. (There is a 5-year lifetime
net earnings from self-employment, deduct all equal to your reimbursement. limit.) The years don't have to be consecu-
your expenses related to your ministerial serv- For more information on accountable and tive.
ices performed as a self-employed person. nonaccountable plans, see Pub. 463, Travel, 3. Your net nonfarm profits were:
These are ministerial expenses you incurred Gift, and Car Expenses.
while working other than as a common-law em- a. Less than $7,103; and
ployee of the church. They include expenses in-
curred in performing marriages and baptisms, Married Couple Missionary Team b. Less than 72.189% of your gross non-
and in delivering speeches. Deduct these ex- farm income.
penses on Schedule C (Form 1040), and carry If both spouses are duly ordained, commis-
the net amount to line 2 of Schedule SE (Form sioned, or licensed ministers of a church and If you meet all three tests, use Table 3 to fig-
1040). have an agreement that each will perform spe- ure your net earnings from self-employment un-
Wages earned as a common-law employee cific services for which they are paid jointly or der the nonfarm optional method.
(explained earlier) of a church are generally separately, they must divide the self-employ-
subject to self-employment tax unless an ex- ment income according to the agreement. Table 3. Figuring Nonfarm Net
emption is requested, as discussed earlier un- Earnings
der Exemption From Self-Employment (SE) Tax. If the agreement is with one spouse only and IF your gross
Subtract any allowable expenses from those the other spouse isn't paid for any specific du-
wages, include the net amount on line 2 of ties, amounts received for their services are in- nonfarm THEN your net earnings
Schedule SE (Form 1040), and attach an ex- cluded only in the self-employment income of income is ... are equal to ...
planation. Don't complete Schedule C (Form the spouse having the agreement. $9,840 or less two-thirds of your gross
1040). nonfarm income.
Employee reimbursement arrangements. If Earnings Subject to SE Tax more than $6,560.
you received an advance, allowance, or reim- $9,840
bursement for your employee expenses, how For 2023, the maximum net earnings from
you report this amount and your employee ex- self-employment subject to social security (old
penses depends on whether your employer re- age, survivors, and disability insurance) tax is Actual net earnings. Multiply your total earn-
imbursed you under an accountable plan or a $160,200 minus any wages and tips you earned ings subject to SE tax by 92.35% (0.9235) to
nonaccountable plan. Ask your employer if you that were subject to social security tax. The tax get actual net earnings. Actual net earnings are

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equivalent to net earnings under the “Regular ignate the payment as a housing allowance be- for SE tax purposes is $91,000 ($67,000 salary
Method.” fore it makes the payment. It must designate a + $24,000 fair rental value of the parsonage).
definite amount. It can't determine the amount
More information. For more information on of the housing allowance at a later date. If the Home ownership. If you own your home and
the nonfarm optional method, see Pub. 334, Tax church or organization doesn't officially desig- you receive as part of your salary a housing or
Guide for Small Business, and the Instructions nate a definite amount as a housing allowance, rental allowance, you may exclude from gross
for Schedule SE (Form 1040). you must include your total salary in your in- income the smallest of:
come. • The amount actually used to provide a
If you are employed and paid by a local con- home;
Income Tax: Income and gregation, a resolution by a national church • The amount officially designated as a
agency of your denomination doesn't effectively rental allowance; or
Expenses designate a housing allowance for you. The lo- • The fair rental value of the home, including
cal congregation must officially designate the furnishings, utilities, garage, etc.
Some income and expense items are treated part of your salary that is a housing allowance. Excess rental allowance. You must in-
the same for both income tax and SE tax purpo- However, a resolution of a national church clude in gross income the amount of any rental
ses and some are treated differently. agency can designate your housing allowance if allowance that is more than the smallest of:
you are directly employed by the national
Note. For purposes of this section, referen- agency. • Your reasonable salary,
• The fair rental value of the home plus utilit-
ces to members of the clergy are only to minis- An official designation of an amount as a ies, or
ters or members of a religious order. housing or rental allowance may be shown in an • The amount actually used to provide a
employment contract, in the minutes of a church home.
Income Items or qualified organization, in a budget, or in any
official action taken in advance of payment of Include this amount in the total on Form
The tax treatment of offerings and fees, outside the allowance. A designation is sufficient if it 1040 or 1040-SR, line 1h. On the dotted line
earnings, rental allowances, rental value of a permits a payment to be identified as a payment next to line 1h, enter “Excess allowance” and
parsonage, earnings of members of religious or- of a rental or housing allowance as distin- the amount.
ders, and foreign earned income is discussed guished from salary or other remuneration. You may deduct the home mortgage in-
here. Informal discussions don't amount to an offi- TIP terest and real estate taxes paid on
cial designation. However, the facts and circum- your home even though you pay all or
Offerings and Fees stances of a designation may demonstrate that part of those expenses with funds you get
the designation was official. through a tax-free rental or parsonage allow-
If you are a member of the clergy, you must in- A church or employing organization ance. However, you can only deduct these ex-
clude in your income offerings and fees you re- TIP may report the rental allowance or fair penses as itemized deductions on Schedule A
ceive for marriages, baptisms, funerals, rental value of the parsonage (and util- (Form 1040).
masses, etc., in addition to your salary. If the of- ities) in box 14 of Form W-2.
fering is made to the religious institution, it isn't Retired ministers. If you are a retired minister,
taxable to you. Rental allowances. If you receive in your sal- you can exclude from your gross income the
ary an amount officially designated as a rental rental value of a home (plus utilities) furnished
Outside Earnings allowance (including an amount to pay utility to you by your church as a part of your pay for
costs), you can exclude the allowance from your past services, or the part of your pension that
If you are a member of a religious organization gross income if: was designated as a rental allowance. However,
and you give your outside earnings to the or- • You use the amount to provide or rent a a minister's surviving spouse can't exclude the
ganization, you still must include the earnings in home, and rental value unless the rental value is for minis-
your income. However, you may be entitled to a • The amount isn't more than reasonable terial services they perform or performed.
charitable contribution deduction for the amount pay for your services.
paid to the organization. For more information, Teachers or administrators. If you are a min-
see Pub. 526. The amount you exclude can't be more than ister employed as a teacher or administrator by
the fair rental value of the home, including fur- a church school, college, or university, you are
nishings, plus the cost of utilities. performing ministerial services for purposes of
Exclusion of Rental Allowance and the housing exclusion. However, if you perform
Fair Rental Value of a Parsonage Fair rental value of parsonage. You can ex- services as a teacher or administrator on the
clude from gross income the fair rental value of faculty of a nonchurch college, you can't ex-
Ordained, commissioned, or licensed ministers a house or parsonage, including utilities, fur- clude from your income a housing allowance or
of the gospel may be able to exclude from in- nished to you as part of your earnings. How- the value of a home that the college provides to
come tax the rental allowance or fair rental ever, the exclusion can't be more than the rea- you.
value of a parsonage that is provided to them as sonable pay for your services. If you pay for the
pay for their services. Services include: utilities, you can exclude any allowance desig- If you live in faculty lodging as an em-
• Ministerial services, discussed earlier; nated for utility costs, up to your actual cost. TIP ployee of an educational institution or
• Administrative duties and teaching at theo- academic health center, all or part of
logical seminaries; and Example. Rev. Layne Baker is a full-time the value of that lodging may be nontaxable un-
• The ordinary duties of a minister per- minister. The church allows Rev. Baker to use a der a different rule. In Pub. 525, see Faculty
formed as an employee of the United parsonage that has an annual fair rental value of lodging in the discussion on meals and lodging
States (other than as a chaplain in the $24,000. The church pays them an annual sal- under Fringe Benefits.
Armed Forces), a state, territory, political ary of $67,000, of which $7,500 is designated If you serve as a minister of music or minis-
subdivision, or the District of Columbia. for utility costs. Their actual utility costs during ter of education, or serve in an administrative or
the year were $7,000. other function of your religious organization, but
This exclusion applies only for income tax For income tax purposes, Rev. Baker ex- aren't authorized to perform substantially all of
purposes. It doesn't apply for SE tax purposes, cludes $31,000 from gross income ($24,000 fair the religious duties of an ordained minister in
as discussed earlier under Amounts included in rental value of the parsonage plus $7,000 from your church (even if you are commissioned as a
gross income under Self-Employment Tax: Fig- the allowance for utility costs). Rev. Baker will minister of the gospel), the housing exclusion
uring Net Earnings. report $60,000 ($59,500 salary plus $500 of un- doesn't apply to you.
used utility allowance). However, their income
Designation requirement. The church or or-
ganization that employs you must officially des-
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Theological students. If you are a theological Figuring the allocation. Figure the portion of and dental insurance and qualified long-term
student serving a required internship as a your otherwise deductible expenses that you care insurance for you, your spouse, your de-
part-time or assistant pastor, you can't exclude can't deduct (because you must allocate that pendents, and any child you may have who, as
a parsonage or rental allowance from your in- portion to tax-free income) by multiplying the of the end of the tax year, had not attained age
come unless you are ordained, commissioned, expenses by the following fraction: 27.
or licensed as a minister.
Tax-free rental or For purposes of this deduction, your child
Traveling evangelists. You can exclude a des- parsonage allowance must be an individual who is your son, daugh-
ignated rental allowance from out-of-town All income (taxable ter, stepson, stepdaughter, or eligible foster
churches if you meet all of the following require- and tax free) earned child. An individual who has been legally adop-
ments. from your ministry ted by you (or placed with you for adoption) will
• You are an ordained minister. be treated as your child.
• You perform ministerial services at
churches located away from your commun- When figuring the allocation, include the in-
ity. come and expenses related to the ministerial If you qualify, you can take this deduction as
• You actually use the rental allowance to duties you perform both as an employee and as an adjustment to income on Schedule 1 (Form
maintain your permanent home. a self-employed person. 1040), line 17. See the Instructions for Form
1040 to figure your deduction.
Reduce your otherwise deductible ex-
Cantors. If you have a bona fide commission TIP penses only in figuring your income The following special rules apply to the
and your congregation employs you on a tax, not your SE tax. self-employed health insurance deduction.
full-time basis to perform substantially all the re- You can't take a medical expense deduc-
ligious functions of the Jewish faith, you can ex- •
clude a rental allowance from your gross in- Example. Rev. Peyton Ashford received tion on Schedule A (Form 1040) for any ex-
come. $40,000 in earnings for ministerial services con- penses you claim for purposes of the
sisting of a $28,000 salary for ministerial serv- self-employed health insurance deduction.
ices performed as an employee, $2,000 for • You can't take the deduction for any month
Earnings—Members of Religious weddings and baptisms performed as a you are eligible to participate in a subsi-
Orders self-employed person, and a $10,000 tax-free dized plan of your (or your spouse's) em-
parsonage allowance. Rev. Ashford incurred ployer.
Your earnings may be exempt from both income $4,000 of unreimbursed expenses connected • The deduction can't exceed your net earn-
tax and SE tax if you are a member of a reli- with their earnings for ministerial services: ings from the business under which the in-
gious order who: $3,500 of the $4,000 is for employee expenses surance plan is established. Your net earn-
• Has taken a vow of poverty, related to their ministerial salary. Rev. Ashford is ings under this rule don't include the
• Receives earnings for services performed no longer able to deduct the $3,500 incurred for income you earned as a common-law em-
as an agent of the order and in the exercise employee expenses related to their ministerial ployee (discussed earlier) of a church.
of duties required by the order, and salary since miscellaneous itemized deductions
• Renounces the earnings and gives them to aren’t allowed for tax years 2018 through 2025 More information. For more information
the order. pursuant to section 67(g) of the Internal Reve- about the self-employed health insurance de-
nue Code. Since the $500 is related to the wed- duction, see Form 7206 and its instructions.
See Members of Religious Orders, earlier, dings and baptisms they performed as a
under Social Security Coverage. self-employed person, this amount is otherwise Deduction for SE Tax
deductible.
Foreign Earned Income Rev. Ashford figures the nondeductible You can deduct one-half of your SE tax in figur-
(tax-free) portion of expenses related to their ing AGI. This is an income tax deduction only,
Certain income may be exempt from income tax wedding and baptism income as follows: which is claimed on Schedule 1 (Form 1040),
if you work in a foreign country or in a specified line 15. This deduction doesn’t include taxes
U.S. territory. Pub. 54 discusses the foreign ($10,000 ÷ $40,000) × $500 = $125
imposed by section 1401(b)(2), pursuant to
earned income exclusion. Pub. 570, Tax Guide section 164(f)(2) of the Internal Revenue Code.
for Individuals With Income From U.S. Territo- Required statement. If you receive a tax-free
ries, covers the rules for taxpayers with income rental or parsonage allowance and have minis- Don't claim this deduction in figuring
from U.S. territories. You can get these free pub- terial expenses, attach a statement to your tax ! net earnings from self-employment
lications from the IRS at IRS.gov/Forms or from return. The statement must contain all of the fol- CAUTION subject to SE tax.
most U.S. embassies or consulates. lowing information.
• A list of each item of taxable ministerial in-
come by source (such as wages, salary, Income Tax Withholding and
Expense Items weddings, baptisms, etc.) plus the amount. Estimated Tax
• A list of each item of tax-free ministerial in-
The tax treatment of expenses allocable to come by source (parsonage allowance) The federal income tax is a pay-as-you-go tax.
tax-free income and health insurance costs is plus the amount. You must pay the tax as you earn or receive in-
discussed here. • A list of each item of otherwise deductible come during the year. An employee usually has
ministerial expenses plus the amount. income tax withheld from their wages or salary.
Expenses Allocable to Tax-Free • How you figured the nondeductible part of However, your salary isn't subject to federal in-
Income your otherwise deductible expenses. come tax withholding if both of the following
• A statement that the other deductions conditions apply.
If you receive a rental or parsonage allowance claimed on your tax return aren't allocable You are a duly ordained, commissioned, or
that is exempt from income tax (tax free), you to your tax-free income. •
licensed minister, a member of a religious
must allocate a portion of the expenses of oper- At the end of this publication, you will find order (who hasn't taken a vow of poverty),
ating your ministry to that tax-free income. You blank worksheets for your own use. or a Christian Science practitioner or
can't deduct the portion of your expenses that reader.
you allocate to your tax-free rental or parsonage Health Insurance Costs of • Your salary is for ministerial services (see
allowance. Ministerial Services, earlier).
Self-Employed Ministers
Exception. This rule doesn't apply to your de- If your salary isn't subject to withholding, or if
ductions for home mortgage interest or real es- If you are self-employed, you may be able to de- you don't pay enough tax through withholding,
tate taxes on your home. duct the amount you paid in 2023 for medical you may need to make estimated tax payments
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to avoid penalties for not paying enough tax as • You are exempt from SE tax on earnings If you filed Form 4029 and received IRS ap-
you earn your income. from ministerial services and you have proval not to be taxed on those earnings, and
You must generally make estimated tax pay- $400 or more of other net earnings subject you don't have any other income subject to SE
ments if you expect to owe taxes, including SE to SE tax; or tax, don't file Schedule SE (Form 1040). In-
tax, of $1,000 or more, when you file your re- • You had wages of $108.28 or more from an stead, enter “Exempt—Form 4029” on the dot-
turn. electing church or church-controlled organ- ted line next to Schedule 2 (Form 1040), line 4.
ization (see Coverage of Religious Workers
Determine your estimated tax by using the (Church Employees), earlier, under Social More information. For more information on fil-
worksheets in Pub. 505, Tax Withholding and Security Coverage). ing your return, including when and where to file
Estimated Tax. You can also use the IRS With- it, see the Instructions for Form 1040.
holding Estimator at IRS.gov/W4App. Pay the Self-employment tax. For services in the ex-
entire estimated tax for 2024 or the first install- ercise of the ministry, members of the clergy re-
ment by April 15, 2024. See Form 1040-ES for ceive a Form W-2, but do not have social secur- Retirement Savings
the different payment methods. The April 15 ity or Medicare taxes withheld. You must pay
date applies whether or not your tax home and social security and Medicare taxes by filing Arrangements
your abode are outside the United States and Schedule SE (Form 1040) with your return.
Puerto Rico. For more information, see chap- If you filed Form 4361 and didn't receive ap- Retirement savings arrangements are plans that
ter 2 of Pub. 505. proval from the IRS, you must pay SE tax on offer you a tax-favored way to save for your re-
If you perform your services as a com- your ministerial earnings, as explained earlier. tirement. You can generally deduct your contri-
mon-law employee of the church and your sal- You should report ministerial earnings and ex- butions to the plan. Your contributions and the
ary isn't subject to income tax withholding, you penses from nonemployee ministerial services earnings on them generally aren't taxed until
can enter into a voluntary withholding agree- on Schedule C (Form 1040). You should then they are distributed. However, if the plan per-
ment with the church to cover any income and carry the net amount over to line 2 of Sched- mits, you may choose to have contributions
SE tax that may be due. ule SE (Form 1040). However, if you were a duly made to a Roth contribution program, and those
ordained minister who was an employee of a contributions won't be excluded from your in-
church and you must pay SE tax on the wages come, but will be distributed tax free if you sat-
you earned for those services, don't report isfy certain requirements.
Filing Your Return those wages on Schedule C (Form 1040). In-
stead, report those wages less any allowable Retirement plans for the self-employed. To
You must file an income tax return for 2023 if expenses on line 2 of Schedule SE (Form 1040) set up one of the following plans, you must be
your gross income was at least the amount and attach an explanation. self-employed.
shown in the third column of Table 4. • SEP (simplified employee pension) plan.
Exemption from SE tax. If you filed Form • SIMPLE (savings incentive match plan for
Additional requirements. Even if your in- 4361 and received IRS approval not to be taxed employees) plan.
come was less than the amount shown in Ta- on your ministerial earnings, and you don't have • Qualified retirement plan (also called a
ble 4, you must file an income tax return on any other income subject to SE tax, don't file Keogh or H.R. 10 plan), including a 401(k)
Form 1040 or 1040-SR, and attach a completed Schedule SE (Form 1040). Instead, enter “Ex- plan.
Schedule SE (Form 1040), if: empt—Form 4361” on the dotted line next to The common-law rules determine whether
• You aren't exempt from SE tax, and you Schedule 2 (Form 1040), line 4. However, if you you are an employee or a self-employed person
have net earnings from self-employment had net earnings from another trade or busi- for purposes of setting up a retirement plan.
(discussed earlier under Self-Employment ness of $400 or more subject to SE tax, see line See Employment status for other tax purposes
Tax: Figuring Net Earnings) of $400 or A at the top of Schedule SE (Form 1040). under Coverage of Members of the Clergy,
more in the tax year;
Table 4. 2023 Filing Requirements for Most Taxpayers

AND at the end of 2023 THEN file a return if your gross income** was
IF your filing status is... you were*... at least...
under age 65 $13,850
Single
65 or older 15,700
under 65 (both spouses) $27,700
Married filing jointly*** 65 or older (one spouse) 29,200
65 or older (both spouses) 30,700
Married filing separately any age $5
under 65 $20,800
Head of household
65 or older 22,650
under 65 $27,700
Qualifying surviving spouse
65 or older 29,200

* If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse died in 2023 or you are preparing a return for
someone who died in 2023, see Pub. 501, Dependents, Standard Deduction, and Filing Information.)
** Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from
sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Don’t include any social security benefits
unless (a) you are married filing a separate return and you lived with your spouse at any time in 2023, or (b) one-half of your social security benefits plus your
other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for Form
1040, lines 6a and 6b, to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses,
reported on Form 8949 or Schedule D (Form 1040). Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7; or
Schedule F (Form 1040), line 9. But, in figuring gross income, don't reduce your income by any losses, including any loss on Schedule C (Form 1040),
line 7; or Schedule F (Form 1040), line 9.
*** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross income was at least $5, you must file a return
regardless of your age.

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earlier. This result is true even if your compen- exempt from tax under section 501(c)(3) of the 3. Income of bona fide residents of American
sation for ministerial services (defined earlier) is Internal Revenue Code. If either situation ap- Samoa, and
subject to SE tax. plies to you, you can deduct your contributions 4. Income of bona fide residents of Puerto
For example, if a congregation pays you a to a 403(b) plan as explained next. Rico.
salary for performing ministerial services and • If you are self-employed, deduct your con-
you are subject to the congregation's control, tributions on Schedule 1 (Form 1040), More information. For more information
you are generally a common-law employee. You line 16. about the credit, see Pub. 590-A.
aren't a self-employed person for purposes of • If you aren't self-employed and your em-
setting up a retirement plan. This result is true ployer doesn't exclude your contributions
even if your salary is subject to SE tax. from your earned income, deduct your con- Earned Income Credit
On the other hand, amounts received di- tributions on Schedule 1 (Form 1040),
rectly from members of the congregation, such line 24g. (EIC)
as fees for performing marriages, baptisms, or
other personal services that you report on Retirement savings contributions credit. The EIC is a tax credit for certain people who
Schedule C (Form 1040), are earnings from You may be able to take a tax credit of up to work. If you qualify for it, the EIC reduces the tax
self-employment for all tax purposes. $1,000 (up to $2,000 if filing jointly) for certain you owe. The EIC may give you a refund even if
Contributions generally may be made on a contributions you make to any of the retirement you don't owe any tax.
pre-tax basis or, if permitted by the plan, they plans or IRAs discussed earlier. The credit is
may be made as a Roth contribution on an af- based on the contributions you make and your You can't take the credit for 2023 if your
ter-tax basis. For more information on establish- credit rate. Your credit rate can be as low as earned income (or adjusted gross income) is:
ing a SEP, SIMPLE, or qualified retirement plan, 10% or as high as 50%, depending on your fil- • $17,640 or more ($24,210 or more if mar-
see Pub. 560, Retirement Plans for Small Busi- ing status and AGI. Figure the credit on Form ried filing jointly) and you don't have a qual-
ness. 8880, Credit for Qualified Retirement Savings ifying child,
Contributions. • $46,560 or more ($53,120 or more if mar-
Individual retirement arrangements (IRAs). You can't take the credit if any of the follow- ried filing jointly) and you have one qualify-
The traditional IRA and the Roth IRA are two in- ing apply. ing child,
• $52,918 or more ($59,478 or more if mar-
dividual retirement arrangements you can use 1. You were born after January 1, 2006. ried filing jointly) and you have two qualify-
to save money for your retirement. Generally, ing children, or
your maximum contribution for 2023 to either of 2. You were a student who, during any part of
these plans (or to a combination of the two) is 5 calendar months (not necessarily con- • $56,838 or more ($63,398 if married filing
the smaller of your taxable compensation or secutive) of 2023: jointly) and you have three or more qualify-
ing children.
$6,500 ($7,500 if you are age 50 or older by the a. Was enrolled as a full-time student at
end of 2023). a school that has a regular teaching Earned income. Earned income includes
However, your maximum contribution to a staff, course of study, and regularly your:
Roth IRA will be further reduced or eliminated if enrolled body of students in attend-
your AGI is above a certain amount. You can't ance; or 1. Wages, salaries, tips, and other taxable
deduct Roth IRA contributions, but if you satisfy employee compensation (even if these
certain requirements, all earnings in the Roth b. Took a full-time, on-farm training amounts are exempt from FICA or SECA
IRA are tax free and neither your nondeductible course given by a school that has a under an approved Form 4029 or 4361);
contributions nor any earnings on them are tax- regular teaching staff, course of study, and
able when distributed. and regularly enrolled body of stu-
If you contribute to a traditional IRA, your dents in attendance, or a state, 2. Net earnings from self-employment that
contribution may be deductible. However, your county, or local government agency. are not exempt from SECA (you don't
have an approved Form 4029 or 4361) that
deduction may be reduced or eliminated if you 3. Someone, such as your parent(s), claims you report on Schedule SE (Form 1040),
or your spouse is covered by an employer retire- an exemption for you on their 2023 tax re- line 3, with the following adjustments.
ment plan (including, but not limited to, a SEP, turn.
SIMPLE, or qualified retirement plan). a. Subtract the amount you claimed (or
For more information on IRAs, see Pub. 4. Your AGI for 2023 is more than: should have claimed) on Schedule 1
590-A, Contributions to Individual Retirement a. $73,000, if your filing status is married (Form 1040), line 15, for the deducti-
Arrangements. filing jointly; ble part of your SE tax.
Tax-sheltered annuity plans. Church employ- b. $54,750, if your filing status is head of b. Add any amount from Schedule SE
ees, members of religious orders, and duly or- household; or (Form 1040), line 4b and line 5a.
dained, commissioned, or licensed ministers c. $36,500, if your filing status is single, If you are a minister and have an ap-
working as ministers or chaplains can generally married filing separately, or qualifying ! proved Form 4361, your earned in-
participate in tax-sheltered annuity (403(b)) surviving spouse. CAUTION come will still include wages and salar-
plans. For more information, see Pub. 571, ies earned as an employee, but it will not
Tax-Sheltered Annuity Plans. School. A school includes technical, trade, include amounts you received for nonemployee
and mechanical schools. It doesn't include ministerial duties, such as fees for performing
Deducting contributions to tax-sheltered on-the-job training courses, correspondence marriages and baptisms, and honoraria for de-
annuity plans. If you are an employee, your schools, or schools offering courses only livering speeches.
employer may exclude allowable contributions through the Internet.
to a 403(b) plan from your income. These con- More information. For detailed rules on this
tributions won't be included in your total wages Full-time student. You are a full-time stu-
on your Form W-2, but you will pay tax on distri- dent if you are enrolled for the number of hours credit, see Pub. 596. To figure the amount of
butions from your plan. However, if you choose or courses the school considers to be full time. your credit, you can either fill out a worksheet or
have the IRS figure the credit for you. See Pub.
to have contributions made to a Roth contribu- AGI. When figuring AGI, you must add 596 for the steps you must follow to have the
tion program, they won't be excluded from your back any exclusion or deduction claimed for the IRS figure your EIC.
income, but will be distributed tax free if you sat- year for:
isfy certain requirements.
You may also participate in a 403(b) plan if 1. Foreign earned income,
you are a minister or chaplain and, in the exer- 2. Foreign housing costs,
cise of your ministry, you are either self-em-
ployed or employed by an organization that isn't

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Worksheets
These worksheets are provided to help you figure your taxable ministerial income, your allowable deductions, and your net self-employment income. 

Worksheet 1. Figuring the Percentage of Tax-Free Income
Note. For each line, enter the appropriate amount in all boxes that aren't shaded.
                                                                                                       (a)     (b)                          (c)
                                            Source of Income                                           Taxable Tax-free                     Total
1  W-2 salary as a minister (from box 1 of Form W-2)                                   1 
   Gross income from weddings, baptisms, writing, lecturing, etc. (from line 1 of 
2                                                                                      2 
   Schedule C)
Note. Complete either lines 3a through 3e or lines 4a through 4i.
• If your church provides you with a parsonage, complete lines 3a through 3e.
• If, instead of providing a parsonage, your church provides you with a rental or parsonage allowance, complete lines 4a through 4i.
3a FRV* of parsonage provided by church                                                3a
b  Utility allowance, if any                                                           3b
c  Actual expenses for utilities                                                       3c
d  Enter the smaller of line 3b or 3c                                                  3d
e  Excess utility allowance (subtract line 3d from line 3b)                            3e
4a Parsonage or rental allowance                                                       4a
b  Utility allowance, if separate                                                      4b
c  Total allowance (add lines 4a and 4b)                                               4c
d  Actual expenses for parsonage                                                       4d
e  Actual expenses for utilities                                                       4e
f  Total actual expenses for parsonage and utilities (add lines 4d and 4e)             4f 
g  FRV* of home, plus the cost of utilities                                            4g
h  Enter the smaller of line 4c, 4f, or 4g                                             4h
i  Excess allowance (subtract line 4h from line 4c)                                    4i 
5  Ministerial income (for columns (a), (b), and (c), add lines 1 through 4i)          5 
   Percentage of tax-free income: Total tax-free income (line 5(b)) $
6                                                                                                              =                             %** 
                                       Total income (line 5(c)) $
* FRV (Fair Rental Value): As determined objectively and between unrelated parties, what it would cost to rent a comparable home (including 
furnishings) in a similar location.
** This percentage of your ministerial expenses won't be deductible. Use Worksheets 2 and 3 to figure your allowable deductions.

Worksheet 2.  Figuring the Allowable Deduction for Schedule C Expenses
1  Percentage of expenses that are nondeductible (from Worksheet 1, line 6):              %
2    Business use of car for entire year:    miles × 65.5 cents ($0.655)                                   2 
3    Meals: $  × 50% (0.50)                                                                                3 
4    Other expenses (list item and amount)
a                                                                                                          4a
b                                                                                                          4b
c                                                                                                          4c
d                                                                                                          4d
e                                                                                                          4e
f    Total other expenses (add lines 4a through 4e)                                                        4f 
5    Total Schedule C expenses (add lines 2, 3, and 4f)                                                    5 
6    Nondeductible part of Schedule C expenses (multiply line 5 by the percent in line 1)                  6 
7  Deduction allowed.* Subtract line 6 from line 5. Enter the result here and on Schedule C, line 27a.     7 
* None of the other deductions claimed in this return are allocable to tax-free income.

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Worksheet 3. Figuring Net Self-Employment Income for Schedule SE (Form 1040)
1 W-2 salary as a minister (from box 1 of Form W-2) 1
2 Net profit from Schedule C, line 31 2
3a Parsonage or rental allowance (from Worksheet 1, line 3a or 4a) 3a
b Utility allowance (from Worksheet 1, line 3b or 4b) 3b
c Total allowance (add lines 3a and 3b) 3c
4 Add lines 1, 2, and 3c 4
5 Schedule C expenses allocable to tax-free income (from Worksheet 2, line 6) 5
6 Total unreimbursed employee business expenses 6
7 Total business expenses not deducted in lines 1 and 2 above (add lines 5 and 6) 7
Net self-employment income. Subtract line 7 from line 4. Enter here and on Schedule SE (Form
8 8
1040), line 2.
MilTax, a free tax service offered by the including enrolled agents, certified public ac-
Department of Defense through Military countants (CPAs), accountants, and many oth-
How To Get Tax Help OneSource. For more information, go to ers who don’t have professional credentials. If
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If you have questions about a tax issue; need MilTax). return, choose that preparer wisely. A paid tax
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load free publications, forms, or instructions, go which can be completed online and then • Primarily responsible for the overall sub-
to IRS.gov to find resources that can help you e-filed regardless of income. stantive accuracy of your return,
right away. • Required to sign the return, and
Using online tools to help prepare your re- • Required to include their preparer tax iden-
Preparing and filing your tax return. After turn. Go to IRS.gov/Tools for the following. tification number (PTIN).
receiving all your wage and earnings state- • The Earned Income Tax Credit Assistant
ments (Forms W-2, W-2G, 1099-R, 1099-MISC, (IRS.gov/EITCAssistant) determines if Although the tax preparer always signs
1099-NEC, etc.); unemployment compensation you’re eligible for the earned income credit ! the return, you're ultimately responsible
statements (by mail or in a digital format) or (EIC). CAUTION for providing all the information re-
other government payment statements (Form • The Online EIN Application IRS.gov/EIN ( ) quired for the preparer to accurately prepare
1099-G); and interest, dividend, and retirement helps you get an employer identification your return and for the accuracy of every item
statements from banks and investment firms number (EIN) at no cost. reported on the return. Anyone paid to prepare
(Forms 1099), you have several options to • The Tax Withholding Estimator IRS.gov/ ( tax returns for others should have a thorough
choose from to prepare and file your tax return. W4App) makes it easier for you to estimate understanding of tax matters. For more informa-
You can prepare the tax return yourself, see if the federal income tax you want your em- tion on how to choose a tax preparer, go to Tips
you qualify for free tax preparation, or hire a tax ployer to withhold from your paycheck. for Choosing a Tax Preparer on IRS.gov.
professional to prepare your return. This is tax withholding. See how your with-
holding affects your refund, take-home pay,
Free options for tax preparation. Your op- or tax due. Employers can register to use Business
tions for preparing and filing your return online Services Online. The Social Security Adminis-
or in your local community, if you qualify, include • The First-Time Homebuyer Credit Account tration (SSA) offers online service at SSA.gov/
the following. Look-up IRS.gov/HomeBuyer ( ) tool pro- employer for fast, free, and secure W-2 filing op-
• Free File. This program lets you prepare vides information on your repayments and tions to CPAs, accountants, enrolled agents,
and file your federal individual income tax account balance. and individuals who process Form W-2, Wage
return for free using software or Free File • The Sales Tax Deduction Calculator and Tax Statement, and Form W-2c, Corrected
Fillable Forms. However, state tax prepara- (IRS.gov/SalesTax) figures the amount you Wage and Tax Statement.
tion may not be available through Free File. can claim if you itemize deductions on
Go to IRS.gov/FreeFile to see if you qualify Schedule A (Form 1040). IRS social media. Go to IRS.gov/SocialMedia
for free online federal tax preparation, e-fil- Getting answers to your tax ques- to see the various social media tools the IRS
ing, and direct deposit or payment options. tions. On IRS.gov, you can get uses to share the latest information on tax
• VITA. The Volunteer Income Tax Assis- up-to-date information on current changes, scam alerts, initiatives, products, and
tance (VITA) program offers free tax help to events and changes in tax law. services. At the IRS, privacy and security are
people with low-to-moderate incomes, per- our highest priority. We use these tools to share
sons with disabilities, and limited-Eng- • IRS.gov/Help: A variety of tools to help you public information with you. Don’t post your so-
lish-speaking taxpayers who need help get answers to some of the most common cial security number (SSN) or other confidential
preparing their own tax returns. Go to tax questions. information on social media sites. Always pro-
IRS.gov/VITA, download the free IRS2Go • IRS.gov/ITA: The Interactive Tax Assistant, tect your identity when using any social net-
app, or call 800-906-9887 for information a tool that will ask you questions and, working site.
on free tax return preparation. based on your input, provide answers on a The following IRS YouTube channels provide
• TCE. The Tax Counseling for the Elderly number of tax topics. short, informative videos on various tax-related
(TCE) program offers free tax help for all • IRS.gov/Forms: Find forms, instructions, topics in English, Spanish, and ASL.
taxpayers, particularly those who are 60 and publications. You will find details on • Youtube.com/irsvideos.
years of age and older. TCE volunteers the most recent tax changes and interac- • Youtube.com/irsvideosmultilingua.
specialize in answering questions about tive links to help you find answers to your • Youtube.com/irsvideosASL.
pensions and retirement-related issues questions.
unique to seniors. Go to IRS.gov/TCE or • You may also be able to access tax infor- Watching IRS videos. The IRS Video portal
download the free IRS2Go app for informa- mation in your e-filing software. (IRSVideos.gov) contains video and audio pre-
tion on free tax return preparation. sentations for individuals, small businesses,
and tax professionals.
• MilTax. Members of the U.S. Armed Need someone to prepare your tax return?
Forces and qualified veterans may use There are various types of tax return preparers,
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Online tax information in other languages. • View digital copies of select notices from The IRS can’t issue refunds before
You can find information on IRS.gov/ the IRS. ! mid-February for returns that claimed
MyLanguage if English isn’t your native lan- • Approve or reject authorization requests CAUTION the EIC or the additional child tax credit
guage. from tax professionals. (ACTC). This applies to the entire refund, not
• View your address on file or manage your just the portion associated with these credits.
Free Over-the-Phone Interpreter (OPI) Serv- communication preferences.
ice. The IRS is committed to serving taxpayers Making a tax payment. Payments of U.S. tax
with limited-English proficiency (LEP) by offer- Get a transcript of your return. With an on- must be remitted to the IRS in U.S. dollars.
ing OPI services. The OPI Service is a federally line account, you can access a variety of infor- Digital assets are not accepted. Go to IRS.gov/
funded program and is available at Taxpayer mation to help you during the filing season. You Payments for information on how to make a pay-
Assistance Centers (TACs), most IRS offices, can get a transcript, review your most recently ment using any of the following options.
and every VITA/TCE tax return site. The OPI filed tax return, and get your adjusted gross in- • IRS Direct Pay: Pay your individual tax bill
Service is accessible in more than 350 lan- come. Create or access your online account at or estimated tax payment directly from your
guages. IRS.gov/Account. checking or savings account at no cost to
you.
Accessibility Helpline available for taxpay- Tax Pro Account. This tool lets your tax pro- Debit Card, Credit Card, or Digital Wallet:
ers with disabilities. Taxpayers who need in- fessional submit an authorization request to ac- •
Choose an approved payment processor
formation about accessibility services can call cess your individual taxpayer IRS online ac- to pay online or by phone.
833-690-0598. The Accessibility Helpline can count. For more information, go to IRS.gov/ Electronic Funds Withdrawal: Schedule a
answer questions related to current and future TaxProAccount. •
payment when filing your federal taxes us-
accessibility products and services available in ing tax return preparation software or
alternative media formats (for example, braille, Using direct deposit. The safest and easiest
large print, audio, etc.). The Accessibility Help- way to receive a tax refund is to e-file and through a tax professional.
line does not have access to your IRS account. choose direct deposit, which securely and elec- • Electronic Federal Tax Payment System:
For help with tax law, refunds, or account-rela- tronically transfers your refund directly into your Best option for businesses. Enrollment is
ted issues, go to IRS.gov/LetUsHelp. financial account. Direct deposit also avoids the required.
possibility that your check could be lost, stolen, • Check or Money Order: Mail your payment
Note. Form 9000, Alternative Media Prefer- destroyed, or returned undeliverable to the IRS. to the address listed on the notice or in-
ence, or Form 9000(SP) allows you to elect to Eight in 10 taxpayers use direct deposit to re- structions.
receive certain types of written correspondence ceive their refunds. If you don’t have a bank ac- • Cash: You may be able to pay your taxes
in the following formats. count, go to IRS.gov/DirectDeposit for more in- with cash at a participating retail store.
• Standard Print. formation on where to find a bank or credit • Same-Day Wire: You may be able to do
• Large Print. union that can open an account online. same-day wire from your financial institu-
tion. Contact your financial institution for
• Braille. Reporting and resolving your tax-related availability, cost, and time frames.
• Audio (MP3). identity theft issues.
• Tax-related identity theft happens when Note. The IRS uses the latest encryption
• Plain Text File (TXT). someone steals your personal information technology to ensure that the electronic pay-
• Braille Ready File (BRF). to commit tax fraud. Your taxes can be af- ments you make online, by phone, or from a
fected if your SSN is used to file a fraudu- mobile device using the IRS2Go app are safe
Disasters. Go to IRS.gov/DisasterRelief to re- lent return or to claim a refund or credit. and secure. Paying electronically is quick, easy,
and faster than mailing in a check or money or-
view the available disaster tax relief. • The IRS doesn’t initiate contact with tax- der.
payers by email, text messages (including
Getting tax forms and publications. Go to shortened links), telephone calls, or social What if I can’t pay now? Go to IRS.gov/
IRS.gov/Forms to view, download, or print all media channels to request or verify per- Payments for more information about your op-
the forms, instructions, and publications you sonal or financial information. This includes tions.
may need. Or, you can go to IRS.gov/ requests for personal identification num- • Apply for an online payment agreement
OrderForms to place an order. bers (PINs), passwords, or similar informa- (IRS.gov/OPA) to meet your tax obligation
tion for credit cards, banks, or other finan- in monthly installments if you can’t pay
Getting tax publications and instructions in cial accounts. your taxes in full today. Once you complete
eBook format. Download and view most tax • Go to IRS.gov/IdentityTheft, the IRS Iden- the online process, you will receive imme-
publications and instructions (including the In- tity Theft Central webpage, for information diate notification of whether your agree-
structions for Form 1040) on mobile devices as on identity theft and data security protec- ment has been approved.
eBooks at IRS.gov/eBooks. tion for taxpayers, tax professionals, and • Use the Offer in Compromise Pre-Qualifier
IRS eBooks have been tested using Apple's businesses. If your SSN has been lost or to see if you can settle your tax debt for
iBooks for iPad. Our eBooks haven’t been tes- stolen or you suspect you’re a victim of less than the full amount you owe. For
ted on other dedicated eBook readers, and tax-related identity theft, you can learn more information on the Offer in Compro-
eBook functionality may not operate as inten- what steps you should take. mise program, go to IRS.gov/OIC.
ded. • Get an Identity Protection PIN (IP PIN). IP
PINs are six-digit numbers assigned to tax- Filing an amended return. Go to IRS.gov/
Access your online account (individual tax- payers to help prevent the misuse of their Form1040X for information and updates.
payers only). Go to IRS.gov/Account to se- SSNs on fraudulent federal income tax re-
curely access information about your federal tax turns. When you have an IP PIN, it pre- Checking the status of your amended re-
account. vents someone else from filing a tax return turn. Go to IRS.gov/WMAR to track the status
• View the amount you owe and a break- with your SSN. To learn more, go to of Form 1040-X amended returns.
down by tax year. IRS.gov/IPPIN. It can take up to 3 weeks from the date
• See payment plan details or apply for a
new payment plan. Ways to check on the status of your refund. ! you filed your amended return for it to
• Make a payment or view 5 years of pay- • Go to IRS.gov/Refunds. CAUTION show up in our system, and processing
ment history and any pending or sched- • Download the official IRS2Go app to your it can take up to 16 weeks.
uled payments. mobile device to check your refund status.
• Access your tax records, including key • Call the automated refund hotline at Understanding an IRS notice or letter
data from your most recent tax return, and 800-829-1954. you’ve received. Go to IRS.gov/Notices to find
transcripts.

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additional information about responding to an rights. TAS strives to ensure that every taxpayer How Else Does TAS Help
IRS notice or letter. is treated fairly and that you know and under- Taxpayers?
stand your rights under the Taxpayer Bill of
Responding to an IRS notice or letter. You Rights. TAS works to resolve large-scale problems that
can now upload responses to all notices and affect many taxpayers. If you know of one of
letters using the Document Upload Tool. For no- How Can You Learn About Your these broad issues, report it to TAS at IRS.gov/
tices that require additional action, taxpayers Taxpayer Rights? SAMS. Be sure to not include any personal tax-
will be redirected appropriately on IRS.gov to payer information.
take further action. To learn more about the tool,
go to IRS.gov/Upload. The Taxpayer Bill of Rights describes 10 basic
rights that all taxpayers have when dealing with Low Income Taxpayer Clinics
Note. You can use Schedule LEP (Form the IRS. Go to TaxpayerAdvocate.IRS.gov to (LITCs)
1040), Request for Change in Language Prefer- help you understand what these rights mean to
ence, to state a preference to receive notices, you and how they apply. These are your rights. LITCs are independent from the IRS and TAS.
letters, or other written communications from Know them. Use them. LITCs represent individuals whose income is
the IRS in an alternative language. You may not below a certain level and who need to resolve
immediately receive written communications in What Can TAS Do for You? tax problems with the IRS. LITCs can represent
the requested language. The IRS’s commitment taxpayers in audits, appeals, and tax collection
to LEP taxpayers is part of a multi-year timeline TAS can help you resolve problems that you disputes before the IRS and in court. In addi-
that began providing translations in 2023. You can’t resolve with the IRS. And their service is tion, LITCs can provide information about tax-
will continue to receive communications, includ- free. If you qualify for their assistance, you will payer rights and responsibilities in different lan-
ing notices and letters, in English until they are be assigned to one advocate who will work with guages for individuals who speak English as a
translated to your preferred language. you throughout the process and will do every- second language. Services are offered for free
thing possible to resolve your issue. TAS can or a small fee. For more information or to find an
Contacting your local TAC. Keep in mind, help you if: LITC near you, go to the LITC page at
many questions can be answered on IRS.gov • Your problem is causing financial difficulty TaxpayerAdvocate.IRS.gov/LITC or see IRS
without visiting a TAC. Go to IRS.gov/LetUsHelp for you, your family, or your business; Pub. 4134, Low Income Taxpayer Clinic List, at
for the topics people ask about most. If you still • You face (or your business is facing) an im- IRS.gov/pub/irs-pdf/p4134.pdf.
need help, TACs provide tax help when a tax is- mediate threat of adverse action; or
sue can’t be handled online or by phone. All • You’ve tried repeatedly to contact the IRS
TACs now provide service by appointment, so but no one has responded, or the IRS
you’ll know in advance that you can get the hasn’t responded by the date promised.
service you need without long wait times. Be-
fore you visit, go to IRS.gov/TACLocator to find How Can You Reach TAS?
the nearest TAC and to check hours, available
services, and appointment options. Or, on the TAS has offices in every state, the District of
IRS2Go app, under the Stay Connected tab, Columbia, and Puerto Rico. To find your advo-
choose the Contact Us option and click on “Lo- cate’s number:
cal Offices.” Go to TaxpayerAdvocate.IRS.gov/Contact-
•
Us;
The Taxpayer Advocate • Download Pub. 1546, The Taxpayer Advo-
Service (TAS) Is Here To cate Service Is Your Voice at the IRS, avail-
able at IRS.gov/pub/irs-pdf/p1546.pdf;
Help You • Call the IRS toll free at 800-TAX-FORM
What Is TAS? (800-829-3676) to order a copy of Pub.
1546;
TAS is an independent organization within the • Check your local directory; or
IRS that helps taxpayers and protects taxpayer • Call TAS toll free at 877-777-4778.

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                          To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                     See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                  FICA:                                                                             Religious orders, members of      2, 
A                                   Earnings covered   2             L                                               4 6 10- , 
                                                                                                                    Religious workers   2 4, 
Accountable plan     8              Effective date of exemption    7 Lay employees (See Religious                   Rental allowance    7 9 10,  , 
Additional Medicare Tax   2 8,      Election to exclude church         workers)
                                      employees     4                Living abroad    7 10,                         Resident aliens    4
Administrators  9                 Filing requirements for most                                                      Retired ministers   9
American Samoa       4 8,           taxpayers 11                                                                    Retirement savings 
Assistance (See Tax help)         Foreign earned income      10      M                                               arrangements       11
                                  Form:                              Members of recognized religious  Retirement savings contributions 
C                                   1040 or 1040-SR    9 11-           sects     2 6,                                credit    12
Cantors 10                          1040-ES   10                     Members of religious orders                2,  Royalty income from books        5
Christian Science:                  1040-X   6 7,                      4 6 10- , 
  Practitioners 2 4 6,  -           4029 5 7 11,  ,                  Ministerial services, exemption                S
  Readers  2 4 5,  ,                4361 5 6 11,  ,                    for
Common-law employee       3         8959 2 8,                          Christian Science practitioners              SECA 2 3, 
                                                                          and readers      5                        Sects, members of recognized 
Commonwealth of the Northern        941 7                              Members of religious orders              5    religious    2 6, 
  Mariana Islands (CNMI)     4 8,   943 7                              Ministers 4                                  Self-Employment Contributions 
Credit:                             944 7                            Ministers   2 4 6 9 11- ,  ,  -                 Act (See SECA)
  Earned income      12             SS-8 4                             Health insurance costs of       10           Self-employment tax
  Retirement savings                                                   Retired   9                                   Deduction    10
  contributions      12           G                                  Missionary team, married                        Exemption    5 7 11- , 
                                  Gross income:                        couple    8                                   Maximum earnings       8
D                                   Amounts included in  7                                                           Nonfarm optional method         8
Deduction for self-employment       Amounts not included in  8       N                                               Refunds of   6 7, 
                                                                                                                     Regular method     7
  tax 10                          Guam  4 8,                         Nonaccountable plan             8              Self-employment, net earnings 
                                                                     Nonfarm optional method           8             from 7 9-
E                                 H                                  Nonresident aliens     4                       SIMPLE plan   11
Earned income credit      12      Health insurance costs,                                                           Simplified employee pension 
Effective date:                     deductibility   10               O                                               (SEP) plan    11
                                                                                                                    Social security coverage        3
  Exemption from FICA taxes    7  Home ownership, exclusion of       Offerings and fees     7 9, 
  Exemption from self-employment    allowance 9 10, 
  (SE) tax    6 7,                House or parsonage, fair rental    Overseas duty    7 10, 
                                                                                                                    T
Employment status    3              value 9
Estimated tax   10                                                   P                                              Tax help   14
                                                                                                                    Tax-free income, deductibility of 
Exclusion, foreign earned         I                                  Parsonage allowance             7 9 10,  ,      expenses     10
Exemption                         Income tax
  income  10                                                         Publications (See Tax help)                    Tax-sheltered annuity plans       12
  Form 4029   5 7,                  Estimated tax   10               Puerto Rico      4 8,                          Teachers   9
  Form 4361   5 6,                  Income and expenses      9 11-                                                  Theological students    10
  From FICA taxes    7              Withholding   10                 Q                                              Traveling evangelists   10
  From self-employment (SE)       Individual retirement              Qualified retirement plan         11
  tax   5 7-                        arrangements (IRAs)      12                                                     U
                                                                     R
F                                 K                                                                                 U.S. citizens 4
                                                                     Refunds, self-employment tax                6, U.S. Virgin Islands 4 8, 
Federal Insurance Contributions   Keogh (H.R.10) plans   11            7
  Act (See FICA)                                                     Reimbursements        8                        V
                                                                                                                    Vow of poverty  2 4 5 10,  ,  , 

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