Sponsors (2)
The bill expands and clarifies access for religious workers to opt into Social Security and improves outreach and administrative rules, but it also creates irreversible tax choices, risks substantial retroactive tax bills, and increases administrative and long‑term program costs.
Religious workers (ministers, members of religious orders, and eligible practitioners) can choose to be covered by self‑employment Social Security, allowing them to earn credits toward future retirement and disability benefits.
Survivors of covered workers may become eligible for a lump‑sum death payment for deaths occurring in or after the effective year if the worker revoked the exemption, improving survivor benefits access.
The bill establishes clear administrative rules and deadlines (including a 90‑day outreach reporting deadline), reducing uncertainty about how to revoke the exemption and speeding implementation and outreach to affected workers.
Workers who revoke their religious‑employer exemption are permanently ineligible to reapply, leaving them forever subject to self‑employment taxes even if their circumstances later change.
Late or retroactive revocations can trigger large unexpected back self‑employment tax bills for prior years, creating financial hardship for affected individuals.
Implementing new forms, outreach, and retroactive tax assessments increases IRS/SSA administrative workload and may divert staff and resources from other services.
Based on analysis of 3 sections of legislative text.
Allows ordained ministers, members of religious orders, and Christian Science practitioners currently exempt from self-employment tax to voluntarily revoke that exemption and become covered by Social Security for future taxable years beginning after December 31, 2027. Revocation is made by filing an application with the IRS by the taxpayer's deadline (including extensions) for the second taxable year after 2027, becomes effective for the first or second taxable year after 2027 as specified, is irrevocable, and can require payment of past self-employment tax if filed late. Requires the IRS, working with the Social Security Administration, to submit a plan within 90 days of enactment to notify eligible religious workers about the revocation option and how it affects Social Security benefits and tax obligations.
Introduced February 19, 2025 by Katie Boyd Britt · Last progress February 19, 2025