Church employee income is wages you earn as an employee of a church or a qualified church-controlled organization that has elected an exemption from paying the employer portion of Social Security and Medicare taxes.
This type of income is reported differently than income from most other employers because the church or church organization has a valid certificate allowing it to opt out of employer Social Security and Medicare tax withholding.
Who Qualifies as a Church Employee?
You may have church employee income if you work for:
- A church
- A convention or association of churches
- A qualified church-controlled organization that has elected the exemption
Common examples include administrative staff, maintenance workers, teachers, and other non-minister employees.
Are Ministers Included?
No. Ministers are generally not considered church employees for this purpose.
If you're a minister, your income is typically subject to different tax rules and may be treated as self-employment income for Social Security and Medicare tax purposes. Those rules are separate from church employee income reporting.
Why Does This Matter on Your Tax Return?
Because your employer elected an exemption from employer Social Security and Medicare taxes, you may be responsible for paying certain taxes that would normally be handled through payroll withholding.
When you enter your tax information, be sure to report church employee income exactly as shown on your tax documents. This helps ensure your return is calculated correctly and any required Social Security and Medicare taxes are handled properly.
What Information Will I Need?
Keep any tax forms provided by the church or church organization, including your Form W-2 and any related information about church employee income. Your tax software will guide you through the reporting process and determine whether any additional calculations are required.
If you're unsure whether your wages qualify as church employee income, check with your employer or review the information provided on your tax forms.