Ministers and members of the clergy have unique tax rules. One of the most common questions is whether clergy income is subject to Self‑Employment (SE) tax. 

🧾 Are Clergy Wages Subject to Self‑Employment Tax?

✔️ Yes — in most cases.

Even if you receive a W‑2, the IRS treats income earned for ministerial services as self‑employment income for SE tax purposes.

This means most clergy must pay SE tax on:

• 💼 Wages from ministerial services
• 🏠 Parsonage or housing allowance (including fair rental value, if applicable)

Both amounts are included when calculating SE tax on Schedule SE.

⛪ Who Is Exempt From SE Tax?

You may be exempt from SE tax only if:

📝 1. You filed Form 4361, Application for Exemption From Self‑Employment Tax, and
📬 2. The IRS approved your application

This exemption is available only to ministers who oppose public insurance for religious reasons.

🔔 If you have not filed Form 4361—or it was not approved—you must pay SE tax.

💡 How SE Tax and Income Tax Differ for Clergy

🛠️ How to Complete Your Clergy SE Tax Computations 

Follow these steps:

1. Go to Federal Section
2. Select Other Taxes
3. Choose Self‑Employment Tax (Schedule SE)
4. ✔️ Check the box for “Minister/Clergy.”

You will then see the Religious and Exempt Income options.

📘 Religious and Exempt Income Options (Clergy Only)

Choose the option that applies to your situation:

Option 1: “Member of religious order and have 4029 approved by IRS.”

Select this if:

• You belong to a recognized religious sect that objects to public insurance, and
• The IRS approved your Form 4029

This option applies only to individuals exempt under §1402(g).

Option 2: “Member of religious order and have 4361 approved by IRS.”

Select this if:

• You are a minister or member of a religious order, and
• The IRS approved your Form 4361

Form 4361 exempts ministerial income from SE tax—but not non‑ministerial income.

**Option 3 (Clergy‑Specific):

“I am a minister or a member of a religious order, and I have filed Form 4361, but I have $400 or more of other net earnings from self‑employment.”**

Select this option if all of the following apply:

✔ You are a minister or member of a religious order
✔ You have an approved Form 4361
✔ You have $400 or more of non‑ministerial self‑employment income

Examples of non‑ministerial SE income:

• Freelance or contract work
• A side business on Schedule C
• Gig work (rideshare, delivery, etc.)
• Counseling or speaking not tied to ministerial duties

📌 Important:
Form 4361 exempts only ministerial income from SE tax.
It does not exempt other self‑employment earnings.
TaxSlayer will:

• ❌ Exclude your ministerial income from SE tax
• ✔ Include your other SE income

Option 4: “The options above are not applicable to me.”

Select this if:

• You are a minister without any SE tax exemption, or
• None of the listed exemption scenarios apply

All ministerial income will be included in the SE tax.

🧮 Clergy Tax‑Free Income Worksheet

If you are not exempt, you must complete the Clergy Tax‑Free Income Worksheet. Continue through Schedule SE to access the Clergy Tax-Free Income Worksheet.

The program will compute your SE tax accordingly.