Is there an IRS form for clergy to opt back into SECA? Or do they simply start paying self-employment taxes on Schedule E? Will this trigger an audit? Will they have to pay "back" self-employment taxes for all prior years in which they opted out?
1Comments
Cannot Opt Back In
VVickey
You cannot opt back into SECA once you have been approved.
The IRS opened a brief window to opt back in many years ago ...but have not done it again and give no indication of ever doing it again.
Remember the "opt out" is only on ministerial income. If you own your own business or earn wages for non-ministerial work....the exclusion does not apply.
Please consult with a knowledgable tax professional on ways to save for your retirement or how much you would need to pay into the SS system (and how to do it) to fulfill the proper 40 quarters you need to receive benefits.
The IRS opened a brief window to opt back in many years ago ...but have not done it again and give no indication of ever doing it again.
Remember the "opt out" is only on ministerial income. If you own your own business or earn wages for non-ministerial work....the exclusion does not apply.
Please consult with a knowledgable tax professional on ways to save for your retirement or how much you would need to pay into the SS system (and how to do it) to fulfill the proper 40 quarters you need to receive benefits.