Is my clergy income subject to self-employment taxes?
Yes. Members of the clergy (ministers, members of a religious order, and Christian Science practitioners and readers), and some religious workers (church employees), must pay self-employment tax.
It includes the following income:
Salaries and fees for your ministerial services
Money for marriages, baptisms, funerals, masses, etc.
The value of meals and lodging provided to you, your spouse, and your dependents
The fair rental value of a parsonage (including the cost of furnished utilities) or the rental allowance (including an amount for utilities)
Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary
Clergy housing is only included as income when determining your self-employment taxes, not when calculating your federal income tax.
You're exempt if:
You’re a member of a religious order that has taken a vow of poverty.
You've requested, and the IRS has approved, an exemption from self-employment tax.
You're subject only to the social security laws of a foreign country under the provisions of a social security agreement between the United States and that country.
