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June 1, 2019
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Which clergy self employment tax do I choose?

  • June 1, 2019
  • 1 reply
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No SS of medicare withheld and have housing allowance in box 14
Best answer by MargaretL

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.

1 reply

MargaretL
MargaretLAnswer
Employee
June 1, 2019

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.