Form 4361: Exemption From Self-Employment Tax
Understand the considerations and permanent consequences for ministers and religious members seeking an exemption from self-employment tax on religious grounds.
Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, is a document filed with the Internal Revenue Service (IRS). This form allows qualifying individuals to request an exemption from paying self-employment (SE) taxes on income earned from ministerial services. The basis for this exemption is a conscientious or religious objection to the acceptance of public insurance benefits, such as Social Security and Medicare.
Filing this form is a significant decision with permanent consequences. If the IRS approves the application, the individual will not pay SE tax on their ministerial earnings. However, they will also not receive Social-Security or Medicare benefits based on that income in the future.
Who Can File Form 4361?
To be eligible for the exemption, an individual must meet several specific conditions established by the IRS. The applicant must be a minister of a church, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner.
In addition to meeting the professional requirement, the applicant must also certify the following:
- They are conscientiously opposed to, or because of religious principles are opposed to, the acceptance of any public insurance.
- They have informed their ordaining, commissioning, or licensing body of their opposition to accepting public insurance benefits.
- They have not previously made an election to be covered by Social Security by filing Form 2031.
The opposition must be based on the religious principles of the individual’s faith. The objection cannot be based on general conscientious opposition alone; it must be tied to the tenets of a recognized religious sect.
When to File Form 4361
There is a specific deadline for filing Form 4361. The application must be filed by the due date, including extensions, of the income tax return for the second year in which the individual has net earnings from self-employment of $400 or more. A portion of these earnings must have been from services performed as a minister, member of a religious order, or Christian Science practitioner.
For example, if a minister has over $400 in net ministerial earnings in 2024 for the first time and again in 2025, they must file Form 4361 by the tax filing deadline for the 2025 tax year. Failing to file within this timeframe may result in a loss of eligibility for the exemption.
How to File Form 4361
To apply for the exemption, you must complete and sign Form 4361. The form requires your personal information, details about your ordination, and a statement certifying your religious opposition to public insurance. You must provide facts that support the grounds of your claim.
After completing the form, you must mail it to the IRS processing center. The correct mailing address depends on your location and is listed in the official IRS instructions for Form 4361. It is recommended to send the form via certified mail to have a record of its delivery.
What Happens After Filing?
After the IRS receives your application, it will review the information to determine if you meet the requirements. The IRS will then send you a statement to verify that you have informed your ordaining body of your opposition. You must sign and return this statement to the IRS.
If your application is approved, the IRS will return a copy of your Form 4361 to you with its approval signature. You should keep this approved copy for your permanent records. The exemption is effective for all tax years after 1967 in which you have qualifying net earnings.
Income Subject to Self-Employment Tax
The exemption from SE tax only applies to net earnings derived from ministerial services. If you have other income from self-employment that is not related to your ministerial duties, that income remains subject to SE tax. You would report that non-ministerial income on Schedule SE, Self-Employment Tax.
For example, if a minister also operates a separate business as a freelance graphic designer, the income from the design business is subject to SE tax, even if the exemption for ministerial earnings is approved.
Revoking the Exemption
The decision to claim the exemption from self-employment tax is irrevocable. Once the application is approved, you cannot change your mind and opt back into the Social Security system for your ministerial earnings. This permanence makes it important to carefully consider the long-term financial implications of forgoing Social Security and Medicare benefits before filing Form 4361.