H.R. 227
Clergy Act
Sponsor: Vince Fong
21 cosponsors
- Mike Kelly
- Mike Thompson
- Claudia Tenney
- Darin LaHood
- Juan Ciscomani
- Suzan K. DelBene
- Gregory F. Murphy
- Brian K. Fitzpatrick
- Rudy Yakym III
- Jimmy Panetta
- Thomas R. Suozzi
- Beth Van Duyne
- Julia Letlow
- Adrian Smith
- Ron Estes
- Jim Costa
- Mike Carey
- Nathaniel Moran
- Gus M. Bilirakis
- Danny K. Davis
- Lloyd Smucker
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
This Act may be cited as the Clergy Act.
(a) In general. Notwithstanding section 1402(e)(4) of the Internal Revenue Code of 1986, any exemption which has been received under section 1402(e)(1) of such Code by a duly ordained, commissioned, or licensed minister of a church, a member of a religious order, or a Christian Science practitioner, and which is effective for the taxable year in which this Act is enacted, may be revoked by filing an application therefor (in such form and manner, and with such official, as may be prescribed by the Commissioner of Internal Revenue), if such application is filed no later than the due date of the Federal income tax return (including any extension thereof) for the applicant’s second taxable year beginning after December 31, 2028. Any such revocation shall be effective (for purposes of chapter 2 of the Internal Revenue Code of 1986 and title II of the Social Security Act (42 U.S.C. 401 et seq.)), as specified in the application, either with respect to the applicant’s first taxable year beginning after December 31, 2028, or with respect to the applicant’s second taxable year beginning after such date, and for all succeeding taxable years; and the applicant for any such revocation may not thereafter again file an application for an exemption under such section 1402(e)(1). If the application is filed after the due date of the applicant’s Federal income tax return for a taxable year and is effective with respect to that taxable year, it shall include or be accompanied by payment in full of an amount equal to the total of the taxes that would have been imposed by section 1401 of the Internal Revenue Code of 1986 with respect to all of the applicant’s income derived in that taxable year which would have constituted net earnings from self-employment for purposes of chapter 2 of such Code (notwithstanding paragraphs (4) and (5) of section 1402(c)) except for the exemption under section 1402(e)(1) of such Code.
(b) Effective date. Subsection (a) shall apply with respect to service performed (to the extent specified in such subsection) in taxable years beginning after December 31, 2028, and with respect to monthly insurance benefits payable under title II of the Social Security Act on the basis of the wages and self-employment income of any individual for months in or after the calendar year in which such individual’s application for revocation (as described in such subsection) is effective (and lump-sum death payments payable under such title on the basis of such wages and self-employment income in the case of deaths occurring in or after such calendar year).
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.