Guide
Form 4361: the ministerial exemption from Social Security
Ministers could once opt out of self-employment tax on their ministerial earnings by filing Form 4361. The decision is permanent under current law, and a bill awaiting signature would change that.
What the form does
An approved Form 4361 exempts ministerial earnings from self-employment tax, meaning no Social Security or Medicare tax on those earnings. It does not exempt other earnings, such as a secular job or a spouse's income, and it does not change income tax.
Who could qualify
- An ordained, commissioned, or licensed minister. See who counts as a minister. The exemption rules also reach members of religious orders and Christian Science practitioners, and so does the Clergy Act.
- Conscientiously opposed, for religious reasons, to public insurance for ministerial services, such as Social Security and Medicare. Economic reasons do not qualify.
- Informed the ordaining body of that opposition, and filed on time.
The deadline
The application was due by the due date, including extensions, of the tax return for the second year in which the minister had at least $400 of net self-employment earnings, any part of which was ministerial. After that window the choice was gone.
What it costs and saves
A minister with an exemption avoids about 15.3% tax on 92.35% of ministerial earnings. In exchange, ministerial earnings generate no Social Security credits, so retirement, disability, and survivor benefits must come from other work, a spouse's record, or savings. See what that tax would be in the SE tax calculator.
Is it reversible?
Under current law, no. Congress has passed the Clergy Act (H.R. 227), which was awaiting the President's signature as of October 3, 2026. It would let an exempt minister revoke the exemption during a window covering tax years 2029 and 2030. Read the details and run the numbers in Should I opt back into Social Security?
Deciding whether to file
If you have not filed yet, see should a minister opt out of Social Security?
If you are not sure whether you filed
Look for your approved copy of Form 4361. If you cannot find it, the IRS can confirm your status, and your tax preparer can check how your returns treated Schedule SE.