Why is it important for ministers and churches to know whether a taxpayer is a Minister for Tax Purposes?

Special rules apply to Ministers for Tax Purposes. Ministers and churches should understand those rules, so they can comply with federal tax laws. Ministers for Tax Purposes:

  • Are eligible for a church-designated housing allowance
  • Are always self-employed for Social Security purposes for their ministerial income.
  • Are exempt from federal income tax withholding.
  • Use the quarterly estimated tax procedure to pay their taxes, unless they elect voluntary withholding.
  • May be eligible to opt out of Social Security, although very few ministers qualify to do this.

For more information, visit the Ministers' Tax Guide

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