How does a minister apply for exemption from Social security tax?
An ordained (licensed or commissioned) minister can apply for exemption from Social Security tax (Rev Ruling 80-59 & IRS Code 1402 c-4). Form 4361, Exemption application should be filed before April 15 of the second year from either the date of ordination or the date that net ministerial income exceeds $400. 5). Can a minister come back to Social Security plan after an exemption application is filed? Does a minister filing for an exemption from Social Security lose benefits previously accrued for non-ministerial service? In December (1999), President Clinton signed the “Ticket to Work Act” into law, which includes a provision allowing ministers to revoke an exemption from self-employment taxes. Previously, once the minister opted out of Social Security by filing a Form 4361 with the IRS, he/she was not permitted to revoke the exemption.
