Can [should] the minister file IRS Form 4361 and exempt from Social Security [SECA]? Much counsel has been offered on this subject, but we offer an additional perspective on how to view, and make a decision on this important issue
The church has every theological right to ordain whom they will, and has historically done so. But will the IRS allow him all the tax privileges? Ministry who live and minister in the US are subject to US tax laws.
Church leaders and pastors don't do enough thinking and planning in regards to estate planning and retirement. Key Man Ins.policies; Retirement ; Health and Dental Ins. plans, are a must for the pastor
Properly Credentialed Ministry are privileged to receive a large portion of their compensation as 'Housing Allowance,' free of state and federal tax - IF - and the "if" is what is discussed in this article.
Formerly, all pastors and ministers were considered "Self-Employed." In the mid 1980's, the IRS redefined their position, asserting that all ministers and pastors are 'employees' of the church.