Clergy Act

This bill gives certain clergy a chance to change their minds and start paying into Social Security and Medicare on their ministry earnings. It creates a two-year window to opt back in, so they can build credits toward future benefits.

Eligible people can apply by the due date of their federal tax return for their second tax year that begins after December 31, 2027. They can choose to start in either the first or second tax year after that date. Once they switch back, they can’t opt out again. If they file after the tax return due date but want it to count for that year, they must include the Social Security and Medicare self-employment taxes for that year with their application. The IRS must quickly create a plan to tell eligible clergy about this option. Benefits would be based on earnings starting in the calendar year when the change takes effect.

Key points

• Who: Ordained, commissioned, or licensed ministers, members of religious orders, and Christian Science practitioners who previously claimed an exemption from paying in.
• What changes: They may take back that exemption and begin paying Social Security and Medicare taxes on ministerial income; after switching, they cannot opt out again; the IRS must run an outreach plan .
• When: Apply no later than the due date for the second tax year beginning after December 31, 2027; the change can start in the first or second tax year after that date; benefits reflect earnings from the year the change takes effect.