Sponsors (4)
The bill gives certain clergy a clear, time-bound path to opt into Social Security and obtain retirement and survivors' benefits, but creates risks of large retroactive tax bills, permanent loss of exemption flexibility, and modest added fiscal and administrative costs.
Ordained ministers, members of religious orders, and Christian Science practitioners can revoke prior Social Security exemption elections and thereby gain entitlement to Social Security retirement benefits and lump-sum survivors' payments.
Requires a formal plan and deadline, creating clearer administrative procedures and congressional oversight that reduce uncertainty for clergy deciding whether to opt into Social Security and prompt outreach to affected workers.
Clergy who revoke late may be required to pay full self-employment taxes retroactively, producing large, unexpected tax bills for affected individuals.
Individuals who revoke the exemption are permanently barred from reapplying for it, removing future flexibility and potentially harming those who later prefer an exemption.
Expanding Social Security coverage for some clergy increases future program costs, modestly raising fiscal pressures that could affect taxpayers.
Based on analysis of 3 sections of legislative text.
Allows eligible clergy and Christian Science practitioners to irrevocably revoke their self-employment tax exemption and elect Social Security coverage effective for taxable years beginning after Dec 31, 2027.
Official title: Allow a period in which members of the clergy may revoke their exemption from Social Security coverage, and for other purposes.
Introduced February 19, 2025 by Katie Boyd Britt · Last progress February 19, 2025
Permits certain clergy and related religious workers who previously claimed the self-employment tax exemption under 26 U.S.C. §1402(e)(1) to revoke that exemption and elect Social Security coverage for future taxable years beginning after December 31, 2027. It sets a deadline and procedures for filing the revocation, makes the revocation irrevocable, clarifies tax-payment obligations if the revocation is filed late, and requires the IRS (with SSA consultation) to produce a 90-day outreach plan to notify eligible religious workers about this option.