Please choose that you pay SE tax on your wages and housing allowance - unless Form 4361 has been filed with the IRS and the exemption has been granted or you took a vow of poverty.
For social security and Medicare tax purposes, a duly ordained, licensed or commissioned minister performing ministerial services is considered to be self-employed. This means that your salary on Form W-2, and your housing allowance or parsonage allowance and the net profit on Schedule C or C-EZ (fees for performing baptisms, funerals, etc. , less your employee business expenses) are subject to self-employment tax.
If you would like more information on Earnings for Clergy, please click here.
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