Clergy Act

Clergy, members of religious orders, and Christian Science practitioners with an existing exemption can reverse it for the first or second tax year beginning after 2028, affecting their taxes and Social Security benefits.

What the law does ​

• Allows eligible individuals to revoke an existing clergy exemption from Social Security coverage.
• Requires applications by the extended federal income tax return deadline for the applicant’s second tax year beginning after 2028.
• Makes revocation effective for the applicant’s chosen first or second tax year beginning after 2028.
• Makes the decision permanent and bars a future application for the clergy exemption.
• Requires full payment of applicable self-employment taxes if the application comes after the return deadline for the effective year.
• Directs the IRS Commissioner, in consultation with the Social Security Commissioner, to submit an outreach plan to Congress within 90 days after enactment.

Who it affects ​

• Clergy, members of religious orders, and Christian Science practitioners who already have a Social Security exemption.
• The Internal Revenue Service and Social Security Administration.

Breakdown ​

Clergy Act ​

The Clergy Act gives eligible clergy, members of religious orders, and Christian Science practitioners a limited opportunity to revoke an existing exemption from Social Security coverage. Revocation may take effect for the first or second tax year beginning after December 31, 2028, and remains permanent for all later years.

Key takeaways

• Eligible individuals must apply by the due date, including extensions, of their federal income tax return for their second tax year beginning after December 31, 2028.
• An applicant may choose to make the revocation effective for either the first or second tax year beginning after December 31, 2028.
• After revoking the exemption, the individual cannot apply for the clergy Social Security exemption again.
• If an application is filed after the tax return due date for the year in which revocation takes effect, the applicant must pay in full the applicable self-employment taxes for that year.
• The revocation affects relevant Social Security benefits and lump-sum death payments as provided by the Act.
• Within 90 days after enactment, the IRS Commissioner, in consultation with the Social Security Commissioner, must submit a plan to Congress for informing eligible individuals about this opportunity.