New Law Gives Clergy Who Opted Out of Social Security a Chance Back In

On Tuesday, October 20, President Trump signed H.R. 227, the Clergy Act (Public Law 119-125), into law. It creates a one-time window for ministers who previously opted out of Social Security and Medicare taxes to reverse that decision.

Under current law, ministers who object on religious or conscientious grounds can apply to the IRS for an exemption from Social Security and Medicare taxes on their ministerial earnings. That exemption has always been irrevocable. The Clergy Act changes that for a limited time. Eligible clergy may apply to revoke their exemption, with the revocation taking effect in tax year 2029 or 2030. Applications are due by the filing deadline for the second tax year after 2028, which is April 15, 2031, unless an extension applies. Once made, a revocation is permanent.

Clergy who opt back in will generally still need 40 credits (about 10 years) of covered work to qualify for Social Security and Medicare benefits. The IRS is also required to develop a plan to notify clergy about their eligibility.

This law will likely only impact  a small number of United Methodist clergy because of United Methodist doctrine. But any who did opt out now have an option that didn’t exist before. Clergy in that situation should talk with a tax professional about what makes sense for them.

For more information, see GCFA’s clergy tax guidance on opting out of Social Security and the Congress.gov summary of H.R. 227.