Income in excess of Social Security limit

by Paul
(Indianapolis, Indiana)

I have opted out of Social security years ago after entering the ministry. I worked at numerous secular jobs prior to entering minstry and therefore have acrued benefits which I began receiving at age 62. However this past tax year, 2011, I was paid for continuing employment with the same church which I pastored for 27 years. I am now working part time and earned $10,500 over the limit of $14,600 in 2011. The Social Security Administration says that I owe them $5,000+ for the benefits I received from them because I earned over the limit of $14,680.

I called the Social Security office twice and both times was told the money earned should be exempt and all I needed to do is prove the income was paid by the church, and present this evidence to the local office. I went to the local office and they said it was not exempt. They said any income, regardless of where or how it was earned was not exempt from this $14,680 limit.

Can you tell me if it is exempt or not, and if it is what do I need to do next?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to IRS Form 4361.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!