There are many pastors we have met with over the years that regret becoming exempt from Social Security. We’ve heard things like,
“I was young and was just following advice. If I could go back, I wouldn’t have opted out.”
“I didn’t know that you had to be religiously opposed to it to be exempt. I would have a different answer today.”
The Clergy Act, which was signed into law on October 20, 2026 allows ministers whose self- employment tax exemption was effective for 2026 to revoke that exemption. For calendar year taxpayers, the election can take effect beginning in 2029 or 2030. The application must be filed by the filling due date of the federal income tax return, including extensions, for tax year 2030. This is a permanent election back into Social Security and clergy cannot apply for exempt status again.
Many clergy members tell us they want to opt back in to build their Social Security benefits for retirement. However, before deciding, you should consider your work history and the future of your career.
How much longer do you intend to work as a minister or otherwise?
Do you have any prior years of non-clergy employment to make sure you will be able to qualify for Social Security?
These can help you assess whether you will be able to qualify for Social Security benefits.
According to Congress.gov, “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.” This could include prior years of employment and does not necessarily mean you need 10 additional years of employment.
Premium free Medicare Part A generally depends on sufficient Medicare taxed work by you or your spouse. Medicare is not always conditioned on earning 40 credits.
If you are planning to use this opportunity to opt back in to Social Security, you will need to prepare for a change in your tax bill. Your Salary and Housing Allowance will be subject to self-employment tax on Schedule SE, adding additional tax back into your return. We recommend getting an assessment from a clergy-specialized firm, like Wisdom Over Wealth, to estimate your tax changes and then either begin to withhold adequately or pay in quarterly, accommodating for this change in the year of election.
If you are looking to estimate how this would look for you, we work with all of our tax clients to assist in adequately withholding or paying in quarterly for the upcoming year. We would be happy to help you as you are looking into opting back in or looking for further understanding of your tax situation as a clergy member. Contact us here to arrange a consultation.