H.R. 227

Clergy Act

Sponsor: Vince Fong

21 cosponsors
Follow this bill

Changes benefits · Directs an agency

If this becomes law

If you are a minister, religious order member, or Christian Science practitioner exempt from Social Security

you could opt back in, permanently, beginning with a tax year after 2028.

If you file late for a year you want covered

you would have to pay in full the Social Security taxes that year would have carried.

The Internal Revenue Service

it must give lawmakers a plan within 90 days to tell eligible people about the option.

Written by AI from the bill's text below; it can be wrong. How it's written

A made-up example

Made-up situation: A minister chose long ago to be exempt from Social Security. Under this bill, the minister could file an application to cancel the exemption and start paying Social Security taxes on ministry income, beginning with either the first or second tax year starting after 2028. The minister could not choose the exemption again later.

The full summary

This bill would give ministers, members of religious orders, and Christian Science practitioners who earlier opted out of Social Security a window to opt back in. To use it, they would file an application by the tax-return due date for their second tax year starting after December 31, 2028. Once they opt back in, they could never opt out again. The bill also tells the IRS to make a plan, within 90 days, to tell these people about this option.

Who this affects

  • Ministers, members of religious orders, and Christian Science practitioners who are exempt from Social Security: they could file to revoke that exemption, but could not exempt themselves again later.
  • Those who file after their tax return's due date for a year they want covered: they would have to pay the Social Security self-employment taxes they would have owed for that year.
  • The Commissioner of Internal Revenue (with the Commissioner of Social Security): they must send lawmakers a plan, within 90 days, to inform these people of their right to revoke.

Words to know

  • Exemption: a choice to not take part in Social Security and its taxes.
  • Revoke: cancel an earlier choice.
  • Self-employment taxes: Social Security and Medicare taxes paid by people who work for themselves.
  • Taxable year: the twelve-month period used for filing income taxes.

Official summary

Written by the Congressional Research Service.

Clergy Act

This act establishes a two-year window for members of the clergy who have opted out of Social Security and Medicare taxes (and are thus ineligible for benefits under those programs) to opt back in.

Under current law, certain ministers, members of religious orders, and Christian Science practitioners who object to participation in public insurance programs on religious or conscientious grounds may apply to the Internal Revenue Service (IRS) for an exemption from Social Security and Medicare taxes on ministerial earnings. Individuals who are approved for the exemption do not receive Social Security or Medicare benefits in retirement unless they have qualifying credits from other employment. The exemption is irrevocable.

Under the act, clergy members may choose to revoke their exemption by filing an application with the IRS by the due date of their federal income tax return for the second taxable year after December 31, 2028 (i.e., April 15, 2031, unless an individual obtains an extension to file their taxes). A clergy member may choose for the revocation to take effect in taxable year 2029 or taxable year 2030. A revocation under the act is permanent.

Clergy members who opt back in will generally need 10 years of covered employment (40 credits) to be eligible for Social Security and Medicare benefits, as is currently required for these programs.

The IRS must develop a plan to inform clergy members of their eligibility to revoke prior exemptions, pursuant to the act's changes.

Text of the bill

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Sec. 3. Report to congress Since introduced

Not later than 90 days after the date of enactment of this Act, the Commissioner of Internal Revenue, in consultation with the Commissioner of Social Security, shall develop and submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a plan to inform duly ordained, commissioned, or licensed ministers of a church, members of a religious order, and Christian Science practitioners of their eligibility to revoke any prior election of exemption from Social Security participation.