Clergy Act

Clergy can choose Social Security coverage

The law lets eligible clergy permanently end their Social Security tax exemption and gain covered earnings. This option covers ordained, commissioned, or licensed church ministers, religious order members, and Christian Science practitioners. Their exemption must be in effect for the tax year when the law was enacted. Applications are due by the federal tax-return deadline, including extensions, for their second tax year beginning after December 31, 2028. Applicants can choose coverage starting in their first or second tax year beginning after that date. Coverage applies to service in that year and all later tax years; applicants cannot claim the exemption again. Choosing coverage means paying applicable self-employment taxes. An application filed after the return deadline for a year it covers must include that year's applicable taxes in full. The change applies to monthly Social Security benefits starting in the calendar year coverage takes effect. It also applies to lump-sum death payments for deaths in that year or later. Within 90 days of enactment, the IRS, consulting Social Security, must submit an outreach plan to Congress's tax committees.