I'm a Pastor/ Clergy serving in a church. I recently got my self employment tax exemption approved in 2018. Can it give me tax exemption as retroactive to 2016/17?
You'll need to sign in or create an account to connect with an expert.
Yes. If you had net self-employment earnings of $400 or more from ministerial services in either of those years, the exemption would apply to all future years.
According to "Effective date of exemption" in the Instructions for Form 4361:
An exemption from self-employment tax is effective for all tax years ending after 1967 in which you have net self-employment earnings of $400 or more if you receive any of it from ministerial services. For example, if you had qualified net earnings of $400 or more in 2008 and not again until 2010, a valid Form 4361 filed by April 15, 2011, would apply to 2008 and all later years. See Pub. 517 to find out if you are entitled to a refund of self-employment tax paid in earlier years.
Please see IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious W... for more information.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
vetco1997
New Member
official-desk0011
New Member
TedoPham
New Member
audreyrosemary11
Level 2
jborder
Level 1