Contents

Future Developments ............ 1

What's New .................. 1

Reminders ................... 2

Introduction .................. 2

Social Security Coverage .......... 3

Ministerial Services ............. 4

Exemption From Self-Employment 

(SE) Tax .................. 5

Self-Employment Tax: Figuring Net 

Earnings ................. 7

Income Tax: Income and Expenses .... 9

Filing Your Return ............. 11

Retirement Savings Arrangements ... 11

Earned Income Credit (EIC) ....... 12

Worksheets ................. 13

How To Get Tax Help ............ 14

Index ..................... 17

Future Developments

For the latest information about developments 

related to Pub. 517, such as legislation enacted 

after this publication was published, go to 

IRS.gov/Pub517.

What's New

Temporary 100% deduction of the full meal 

portion of a per diem rate or allowance. The 

100% deduction allowed for certain business 

meals paid or incurred after 2020 and before 

2023 has expired. See Pub. 463 for more details.

Standard mileage rate. The business standard mileage rate for 2023 is 65.5 cents per mile.

Earnings subject to social security tax. For 

2023, the maximum wages and self-employment income subject to social security tax has 

increased to $160,200.

Modified adjusted gross income (AGI) limit 

for traditional IRA contributions. For 2023, 

you may be able to take an IRA deduction for 

your contributions if you were covered by a retirement plan at work and your modified AGI is:

• Less than $136,000 if married filing jointly 

or qualifying surviving spouse;

• Less than $83,000 if single or head of 

household; or

• Less than $10,000 if married filing separately.

If you file a joint return and either you or your 

spouse wasn't covered by a retirement plan at 

Department 

of the 

Treasury

Internal 

Revenue 

Service

Publication 517

Cat. No. 15021X

Social Security 

and Other 

Information for 

Members of the 

Clergy and 

Religious 

Workers

For use in preparing

2023 Returns

Get forms and other information faster and easier at:

• IRS.gov (English) 

• IRS.gov/Spanish (Español) 

• IRS.gov/Chinese (中文) 

• IRS.gov/Korean (한국어) 

• IRS.gov/Russian (Pусский) 

• IRS.gov/Vietnamese (Tiếng Việt) 

Dec 5, 2023
work, you may be able to take an IRA deduction 

if your modified AGI is less than $228,000.

Modified AGI limit for Roth IRA contributions increased. For 2023, you may be able to 

contribute to your Roth IRA if your modified AGI 

is:

• Less than $228,000 if married filing jointly 

or qualifying surviving spouse;

• Less than $153,000 if single, head of 

household, or married filing separately and 

you didn't live with your spouse at any time 

during the year; or

• Less than $10,000 if married filing separately and you lived with your spouse at 

any time during the year.

Earned income credit (EIC). For 2023, the 

maximum amount of income you can earn and 

still claim the EIC has increased. See Earned 

Income Credit, later.

Reminders

Credits for self-employed persons. The refundable credits for certain self-employed persons impacted by the coronavirus have expired.

Self-employed tax payments deferred in 

2020. If you elected to defer the payment of 

certain social security taxes in 2020, see 

IRS.gov/Newsroom/How-Self-EmployedIndividuals-and-Household-Employers-RepayDeferred-Social-Security-Tax, for information on 

how to repay those taxes.

Social security information. Social security 

beneficiaries may quickly and easily obtain various information from the Social Security Administration’s (SSA) website with a my Social Security account, including getting a replacement 

Form SSA-1099 or SSA-1042S. For more information, go to SSA.gov/myaccount.

Photographs of missing children. The IRS is 

a proud partner with the National Center for 

Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the 

Center may appear in this publication on pages 

that would otherwise be blank. You can help 

bring these children home by looking at the 

photographs and calling 1-800-THE-LOST 

(1-800-843-5678) if you recognize a child.

Introduction

Three federal taxes are paid on wages and 

self-employment income—income tax, social 

security tax, and Medicare tax. Social security 

and Medicare taxes are collected under one of 

two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person 

pays all the taxes. Under the Federal Insurance 

Contributions Act (FICA), the employee and the 

employer each pay half of the social security 

and Medicare taxes. No earnings are subject to 

both systems.

In addition, all wages and self-employment 

income that are subject to Medicare tax are 

subject to a 0.9% Additional Medicare Tax to 

the extent they exceed the applicable threshold 

for an individual's filing status. Medicare wages 

and self-employment income are combined to 

determine if income exceeds the threshold. A 

self-employment loss isn't considered for 

purposes of this tax. Railroad retirement (RRTA) 

compensation is separately compared to the 

threshold. Additional Medicare Tax applies to 

Medicare wages, RRTA compensation, and 

self-employment income that are more than:

• $125,000 if married filing separately,

• $250,000 if married filing jointly, or

• $200,000 for any other filing status.

There is no employer match for Additional Medicare Tax. For more information, see Form 8959, 

Additional Medicare Tax, and its separate instructions.

This publication contains information for the 

following classes of taxpayers.

• Ministers.

• Members of a religious order.

• Christian Science practitioners and readers.

• Religious workers (church employees).

• Members of a recognized religious sect.

Note. Unless otherwise noted, in this publication references to members of the clergy include ministers, members of a religious order 

(but not members of a recognized religious 

sect), and Christian Science practitioners and 

readers.

This publication covers the following topics 

about the collection of social security and 

Are Your Ministerial Earnings* Covered Under FICA or SECA?

Find the class to which you belong in the left column and read across 

the table to find if you are covered under FICA or SECA. Don't rely on 

this table alone. Also read the discussion for the class in the following 

pages.

Class Covered under FICA? Covered under SECA?

Minister NO. Your ministerial earnings 

are exempt.

YES, if you don't have an 

approved exemption from 

the IRS.

NO, if you have an approved 

exemption.

Member of a religious order 

who hasn't taken a vow of 

poverty

NO. Your ministerial earnings 

are exempt.

YES, if you don't have an 

approved exemption from 

the IRS.

NO, if you have an approved 

exemption.

Member of a religious order 

who has taken a vow of 

poverty

YES, if:

• Your order elected FICA 

coverage for its 

members; or

• You worked outside the 

order and the work 

wasn't required by, or 

done on behalf of, the 

order.

NO, if neither of the above 

applies.

NO. Your ministerial 

earnings are exempt.

Christian Science practitioner 

or reader

NO. Your ministerial earnings 

are exempt.

YES, if you don't have an 

approved exemption from 

the IRS.

NO, if you have an approved 

exemption.

Religious worker (church 

employee)

YES, if your employer didn't 

elect to exclude you.

NO, if your employer elected 

to exclude you.

YES, if your employer 

elected to exclude you from 

FICA.

NO, if you are covered 

under FICA.

Member of a recognized 

religious sect

YES, if you are an employee 

and don't have an approved 

exemption from the IRS.

NO, if you have an approved 

exemption.

YES, if you are 

self-employed and don't 

have an approved 

exemption from the IRS.

NO, if you have an approved 

exemption.

* Ministerial earnings are the self-employment earnings that result from ministerial services, defined and discussed 

later.

Table 1.

Page 2 Publication 517 (2023)
Medicare taxes from members of the clergy, religious workers, and members of a recognized 

religious sect.

• Which earnings are taxed under FICA and 

which under SECA. See Table 1.

• How a member of the clergy can apply for 

an exemption from self-employment tax.

• How a member of a recognized religious 

sect can apply for an exemption from both 

self-employment tax and FICA taxes.

• How a member of the clergy or a religious 

worker figures net earnings from self-employment.

This publication also covers certain income 

tax rules of interest to ministers and members of 

a religious order.

In the back of Pub. 517 is a set of worksheets that you can use to figure the 

amount of your taxable ministerial income and allowable deductions.

Note. In this publication, the term “church” 

is generally used in its generic sense and not in 

reference to any particular religion.

Comments and suggestions. We welcome 

your comments about this publication and suggestions for future editions.

You can send us comments through 

IRS.gov/FormComments. Or, you can write to 

the Internal Revenue Service, Tax Forms and 

Publications, 1111 Constitution Ave. NW, 

IR-6526, Washington, DC 20224.

Although we can’t respond individually to 

each comment received, we do appreciate your 

feedback and will consider your comments and 

suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. 

If you have a tax question not answered by this 

publication or the How To Get Tax Help section 

at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the 

search feature or viewing the categories listed.

Getting tax forms, instructions, and publications. Go to IRS.gov/Forms to download 

current and prior-year forms, instructions, and 

publications.

Ordering tax forms, instructions, and 

publications. Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order prior-year 

forms and instructions. The IRS will process 

your order for forms and publications as soon 

as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

Useful Items

You may want to see:

Publication

54 Tax Guide for U.S. Citizens and 

Resident Aliens Abroad

525 Taxable and Nontaxable Income

 54 

 525 

Miscellaneous Deductions

Contributions to Individual 

Retirement Arrangements (IRAs)

Distributions from Individual 

Retirement Arrangements (IRAs)

Earned Income Credit (EIC)

Form (and Instructions)

Determination of Worker Status for 

Purposes of Federal Employment 

Taxes and Income Tax Withholding

Certificate of Election of Coverage 

Under the Federal Insurance 

Contributions Act

Profit or Loss 

From Business (Sole Proprietorship)

Self-Employment Tax

stimated Tax for Individuals

Amended U.S. Individual Income 

Tax Return

Application for Exemption From 

Social Security and Medicare Taxes 

and Waiver of Benefits

Application for Exemption From 

Self-Employment Tax for Use by 

Ministers, Members of Religious 

Orders and Christian Science 

Practitioners

Self-Employed Health Insurance 

Deduction

Certification by Churches and 

Qualified Church-Controlled 

Organizations Electing Exemption 

From Employer Social Security and 

Medicare Taxes

Additional Medicare Tax

Premium Tax Credit (PTC)

Ordering publications and forms. See How 

To Get Tax Help, at the end of this publication, 

for information about getting these publications 

and forms.

Social Security 

Coverage

This section gives information about which system (SECA or FICA) is used to collect social security and Medicare taxes from members of the 

clergy (ministers, members of a religious order, 

and Christian Science practitioners and readers) and religious workers (church employees).

Coverage of Members of the 

Clergy

The services you perform in the exercise of your 

ministry, of the duties required by your religious 

order, or of your profession as a Christian Science practitioner or reader are covered by social security and Medicare under SECA. Your 

earnings for these ministerial services (defined 

 529 

 590-A 

 590-B 

 596 

 SS-8 

 SS-16 

 Schedule C (Form 1040) 

 Schedule SE (Form 1040) 

 1040-ES 

 1040-X 

 4029 

 4361 

 7206 

 8274 

 8959 

 8962 

later) are subject to self-employment (SE) tax 

unless one of the following applies.

• You are a member of a religious order who 

has taken a vow of poverty.

• You ask the IRS for an exemption from SE 

tax for your services and the IRS approves 

your request. See Exemption From 

Self-Employment (SE) Tax, later.

• You are subject only to the social security 

laws of a foreign country under the provisions of a social security agreement between the United States and that country. 

For more information, see Bilateral Social 

Security (Totalization) Agreements in Pub. 

54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

Your earnings that aren't from ministerial 

services may be subject to social security tax 

under FICA or SECA according to the rules that 

apply to taxpayers in general. See Ministerial 

Services, later.

Ministers

If you are a minister of a church, your earnings 

for the services you perform in your capacity as 

a minister are subject to SE tax, even if you perform these services as an employee of that 

church. However, you can request that the IRS 

grant you an exemption, as discussed under 

Exemption From Self-Employment (SE) Tax, 

later. For the specific services covered, see 

Ministerial Services, later.

Ministers defined. Ministers are individuals 

who are duly ordained, commissioned, or licensed by a religious body constituting a 

church or church denomination. Ministers have 

the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or 

denomination.

If a church or denomination ordains some 

ministers and licenses or commissions others, 

anyone licensed or commissioned must be able 

to perform substantially all the religious functions of an ordained minister to be treated as a 

minister for social security purposes.

Employment status for other tax purposes. 

Even though all of your income from performing 

ministerial services is subject to self-employment tax for social security tax purposes, you 

may be an employee for income tax or retirement plan purposes in performing those same 

services. For income tax or retirement plan purposes, your income earned as an employee will 

be considered wages.

Common-law employee. Under common-law rules, you are considered either an 

employee or a self-employed person. Generally, 

you are an employee if you perform services for 

someone who has the legal right to control both 

what you do and how you do it, even if you have 

considerable discretion and freedom of action. 

For more information about the common-law 

rules, see Pub. 15-A, Employer's Supplemental 

Tax Guide.

If a congregation employs you and pays you 

a salary, you are generally a common-law employee and income from the exercise of your 

ministry is wages for income tax purposes. 

Publication 517 (2023) Page 3
However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal 

services, aren't wages; such amounts are 

self-employment income for both income tax 

purposes and social security tax purposes.

Example. A church hires and pays you a 

salary to perform ministerial services subject to 

its control. Under the common-law rules, you 

are an employee of the church while performing 

those services.

Form SS-8. If you aren't certain whether 

you are an employee or a self-employed person, you can get a determination from the IRS 

by filing Form SS-8.

Members of Religious Orders

If you are a member of a religious order who 

hasn't taken a vow of poverty, your earnings for 

ministerial services you perform as a member of 

the order are subject to SE tax. See Ministerial 

Services, later. However, you can request that 

the IRS grant you an exemption, as discussed 

under Exemption From Self-Employment (SE) 

Tax, later.

Vow of poverty. If you are a member of a religious order and have taken a vow of poverty, 

you are already exempt from paying SE tax on 

your earnings for ministerial services you perform as an agent of your church or its agencies. 

You don't need to request a separate exemption. For income tax purposes, the earnings are 

tax free to you. Your earnings are considered 

the income of the religious order.

Services covered under FICA at the election of the order. However, even if you have 

taken a vow of poverty, the services you perform for your church or its agencies may be covered under social security. Your services are 

covered if your order, or an autonomous subdivision of the order, elects social security coverage for its current and future vow-of-poverty 

members.

The order or subdivision elects coverage by 

filing Form SS-16. The election may cover certain vow-of-poverty members for a retroactive 

period of up to 20 calendar quarters before the 

quarter in which it files the certificate. If the election is made, the order or subdivision pays both 

the employer's and employee's share of the tax. 

You don't pay any of the FICA tax.

Services performed outside the order. 

Even if you are a member of a religious order 

who has taken a vow of poverty and the order 

requires you to turn over amounts you earn, 

your earnings are subject to federal income tax 

and either SE tax or FICA tax (including estimated tax payments and/or withholding) if you:

• Are self-employed or an employee of an organization outside your religious community; and

• Perform work not required by, or done on 

behalf of, the order.

In these cases, your income from self-employment or as an employee of that outside organization is taxable to you directly. You may, 

however, be able to take a charitable deduction 

for the amount you turn over to the order. See 

Pub. 526, Charitable Contributions. 

Rulings. Organizations and individuals may 

request rulings from the IRS on whether they 

are religious orders, or members of a religious 

order, respectively, for FICA tax, SE tax, and 

federal income tax withholding purposes. To request a ruling, follow the procedures in Revenue 

Procedure 2023-1. To find the revenue procedure, go to IRS.gov and type “Revenue Procedure 2023-1” in the search box.

Christian Science Practitioners 

and Readers

Generally, your earnings from services you perform in your profession as a Christian Science 

practitioner or reader are subject to SE tax. 

However, you can request an exemption, as discussed under Exemption From Self-Employment (SE) Tax, later.

Practitioners. Christian Science practitioners 

are members in good standing of the Mother 

Church, The First Church of Christ, Scientist, in 

Boston, Massachusetts, who practice healing 

according to the teachings of Christian Science. 

State law specifically exempts Christian Science practitioners from licensing requirements.

Some Christian Science practitioners are 

also Christian Science teachers or lecturers. Income from teaching or lecturing is considered 

the same as income from their work as practitioners.

Readers. For tax purposes, Christian Science 

readers are considered the same as ordained, 

commissioned, or licensed ministers.

Coverage of Religious 

Workers (Church 

Employees)

If you are a religious worker (a church employee) and aren't in one of the classes already 

discussed, your wages are generally subject to 

social security and Medicare tax under FICA, 

not SECA. Some exceptions are discussed 

next.

Election by Church To Exclude Its 

Employees From FICA Coverage

Churches and qualified church-controlled organizations (church organizations) that are opposed for religious reasons to the payment of 

social security and Medicare taxes may elect to 

exclude their employees from FICA coverage. If 

your employer makes this election, it doesn't 

pay the employer's portion of the FICA taxes or 

withhold from your pay your portion of the FICA 

taxes. Instead, your wages are subject to SECA 

and you must pay SE tax on your wages if they 

exceed $108.28 during the tax year. However, 

you can request an exemption from SE tax if 

you are a member of a recognized religious 

sect, as discussed below.

Churches and church organizations make 

this election by filing two copies of Form 8274. 

For more information about making this election, see Form 8274.

Election by Certain Church 

Employees Who Are Opposed to 

Social Security and Medicare

You may be able to choose to be exempt from 

social security and Medicare taxes, including 

the SE tax, if you are a member of a recognized 

religious sect or division and work for a church 

(or church-controlled nonprofit division) that 

doesn't pay the employer's part of the social security tax on wages. This exemption doesn't apply to your service, if any, as a minister of a 

church or as a member of a religious order.

Make this choice by filing Form 4029. See 

Requesting Exemption—Form 4029, later, under Members of Recognized Religious Sects.

U.S. Citizens and Resident 

and Nonresident Aliens

To be covered under the SE tax provisions 

(SECA), individuals must generally be citizens 

or resident aliens of the United States. Nonresident aliens aren't covered under SECA unless a 

social security agreement in effect between the 

United States and the foreign country determines that they are covered under the U.S. social security system.

To determine your alien status, see Pub. 

519, U.S. Tax Guide for Aliens.

Residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the 

Northern Mariana Islands (CNMI), and 

American Samoa. If you are a resident of one 

of these U.S. territories but not a U.S. citizen, for 

SE tax purposes you are treated the same as a 

citizen or resident alien of the United States. For 

information on figuring the tax, see Self-Employment Tax: Figuring Net Earnings, later.

Ministerial Services

Ministerial services, in general, are the services 

you perform in the exercise of your ministry, in 

the exercise of your duties as required by your 

religious order, or in the exercise of your profession as a Christian Science practitioner or 

reader. Income you receive for performing ministerial services is subject to SE tax unless you 

have an exemption, as explained later. Even if 

you have an exemption, only the income you receive for performing ministerial services is exempt. The exemption doesn't apply to any other 

income.

The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers.

Ministers

Most services you perform as a minister, priest, 

rabbi, etc., are ministerial services. These services include:

• Performing sacerdotal functions;

Page 4 Publication 517 (2023)
• Conducting religious worship; and

• Controlling, conducting, and maintaining 

religious organizations (including the religious boards, societies, and other integral 

agencies of such organizations) that are 

under the authority of a religious body that 

is a church or denomination.

You are considered to control, conduct, and 

maintain a religious organization if you direct, 

manage, or promote the organization's activities.

A religious organization is under the authority of a religious body that is a church or denomination if it’s organized for, and dedicated 

to, carrying out the principles of a faith according to the requirements governing the creation 

of institutions of the faith.

Services for nonreligious organizations. 

Your services for a nonreligious organization are 

ministerial services if the services are assigned 

or designated by your church. Assigned or designated services qualify even if they don't involve performing sacerdotal functions or conducting religious worship.

If your services aren't assigned or designated by your church, they are ministerial services 

only if they involve performing sacerdotal functions or conducting religious worship.

Services that aren't part of your ministry. 

Income from services you perform as an employee that aren't ministerial services is subject 

to social security and Medicare tax withholding 

under FICA (not SECA) under the rules that apply to employees in general. The following aren't 

ministerial services.

• Services you perform for nonreligious organizations other than the services stated 

above.

• Services you perform as a duly ordained, 

commissioned, or licensed minister of a 

church as an employee of the United 

States, the District of Columbia, a foreign 

government, or any of their political subdivisions. These services aren't ministerial 

services even if you are performing sacerdotal functions or conducting religious worship. (For example, if you perform services 

as a chaplain in the Armed Forces of the 

United States, those services aren't ministerial services.)

• Services you perform in a government-owned and operated hospital. 

(These services are considered performed 

by a government employee, not by a minister as part of the ministry.) However, services that you perform at a church-related 

hospital or health and welfare institution, or 

a private nonprofit hospital, are considered 

to be part of the ministry and are considered ministerial services.

Books or articles. Writing religious books or 

articles is considered to be in the exercise of 

your ministry and is considered a ministerial 

service.

This rule also applies to members of religious orders and to Christian Science practitioners and readers.

Members of Religious 

Orders

Services you perform as a member of a religious order in the exercise of duties required by 

the order are ministerial services. The services 

are considered ministerial because you perform 

them as an agent of the order.

For example, if the order directs you to perform services for another agency of the supervising church or an associated institution, you 

are considered to perform the services as an 

agent of the order.

However, if the order directs you to work outside the order, this employment won't be considered a duty required by the order unless:

• Your services are the kind that are ordinarily performed by members of the order; 

and

• Your services are part of the duties that 

must be exercised for, or on behalf of, the 

religious order as its agent.

Effect of employee status. Ordinarily, if your 

services aren't considered directed or required 

of you by the order, you and the outside party 

for whom you work are considered employee 

and employer. In this case, your earnings from 

the services are taxed under the rules that apply 

to employees in general, not under the rules for 

services performed as an agent of the order. 

This result is true even if you have taken a vow 

of poverty.

Example. Pat Brown and Chris Green are 

members of a religious order and have taken 

vows of poverty. They renounce all claims to 

their earnings. The earnings belong to the order.

Pat is a licensed attorney. The superiors of 

the order instructed Pat to get a job with a law 

firm. Pat joined a law firm as an employee and, 

as requested, the firm made the salary payments directly to the order.

Chris is a secretary. The superiors of the order instructed Chris to accept a job with the 

business office of the church that supervises 

the order. Chris took the job and gave all earnings to the order.

Pat's services aren't duties required by the 

order. Pat’s earnings are subject to social security and Medicare tax under FICA and to federal 

income tax.

Chris' services are duties required by the order. Chris is acting as an agent of the order and 

not as an employee of a third party. Chris 

doesn't include the earnings in gross income, 

and they aren't subject to income tax withholding or to social security and Medicare tax under 

FICA or SECA. 

Christian Science 

Practitioners and Readers

Services you perform as a Christian Science 

practitioner or reader in the exercise of your profession are ministerial services. Amounts you 

receive for performing these services are generally subject to SE tax. You may request an exemption from SE tax, discussed next, which applies only to those services.

Exemption From 

Self-Employment (SE) 

Tax

You can request an exemption from SE tax if 

you are a member of the clergy (minister, member of a religious order, or Christian Science 

practitioner or reader) or a member of a recognized religious sect.

Generally, members of religious orders 

who have taken a vow of poverty are already exempt from paying SE tax, as 

discussed earlier under Members of Religious 

Orders under Social Security Coverage. They 

don't have to request the exemption.

Who can't be exempt. You can't be exempt 

from SE tax if you made one of the following 

elections to be covered under social security. 

These elections are irrevocable.

• You elected to be covered under social security by filing Form 2031, Revocation of 

Exemption From Self-Employment Tax for 

TIP

The Self-Employment Tax Exemption Application and Approval 

Process

Who Can Apply

Members of the Clergy Members of Recognized Religious 

Sects

How File Form 4361 File Form 4029

When File by the due date (including 

extensions) of your income tax return 

for the second tax year in which you 

had at least $400 of net earnings from 

self-employment, any of which came 

from ministerial services

File anytime

Approval If approved, you will receive an 

approved copy of Form 4361

If approved, you will receive an 

approved copy of Form 4029

Effective 

Date

For all tax years after 1967 in which 

you have at least $400 of net earnings 

from self-employment, any of which 

came from ministerial services

For all tax years beginning with the 

first year you meet the eligibility 

requirements, discussed later

Table 2.

Publication 517 (2023) Page 5
Use by Ministers, Members of Religious 

Orders, and Christian Science Practitioners, for your 1986, 1987, 2000, or 2001 tax 

year.

• You elected before 1968 to be covered under social security for your ministerial services.

Requesting exemption. Table 2 briefly summarizes the procedure for requesting exemption 

from the SE tax. More detailed explanations follow.

If you are a minister, member of a religious order, or Christian Science practitioner, an approved exemption only 

applies to earnings you receive for ministerial 

services, discussed earlier. It doesn't apply to 

any other self-employment income.

Members of the Clergy

To claim the exemption from SE tax, you must 

meet all of the following conditions.

• You file Form 4361, described below under 

Requesting Exemption—Form 4361.

• You are conscientiously opposed to public 

insurance because of your individual religious considerations (not because of your 

general conscience), or you are opposed 

because of the principles of your religious 

denomination.

• You file for other than economic reasons.

• You inform the ordaining, commissioning, 

or licensing body of your church or order 

that you are opposed to public insurance if 

you are a minister or a member of a religious order (other than a vow-of-poverty 

member). This requirement doesn't apply 

to Christian Science practitioners or readers.

• You establish that the organization that ordained, commissioned, or licensed you, or 

your religious order, is a tax-exempt religious organization.

• You establish that the organization is a 

church or a convention or association of 

churches.

• You didn't make an election, discussed 

earlier under Who can't be exempt.

• You sign and return the statement the IRS 

mails to you to certify that you are requesting an exemption based on the grounds listed on the statement.

Requesting Exemption—Form 

4361

To request exemption from SE tax, file Form 

4361 in triplicate (original and two copies) with 

the IRS.

The IRS will return to you a copy of the 

Form 4361 that you filed indicating 

whether it has approved your exemption. If it’s approved, keep the approved copy of 

Form 4361 in your permanent records.

When to file. File Form 4361 by the date your 

income tax return is due, including extensions, 

for the second tax year in which both of the following are true.

CAUTION

!

RECORDS

1. You have net earnings from self-employment of at least $400.

2. Any part of those net earnings was from 

ministerial services you performed as a:

a. Minister,

b. Member of a religious order, or

c. Christian Science practitioner or 

reader.

The 2 years don't have to be consecutive tax 

years.

The approval process can take some 

time, so you should file Form 4361 as 

soon as possible.

Example 1. Rev. Taylor Jaeger, a member 

of the clergy ordained in 2023, has net self-employment earnings as a minister of $450 in 2023 

and $500 in 2024. Rev. Jaeger must file their 

application for exemption by the due date, including extensions, for their 2024 income tax return. However, if Rev. Jaeger doesn’t receive 

IRS approval for an exemption by April 15, 

2025, their SE tax for 2024 is due by that date.

Example 2. Rev. Casey Wolfe has only 

$300 in net self-employment earnings as a minister in 2023, but earned more than $400 in 

2022 and expects to earn more than $400 in 

2024. Rev. Wolfe must file their application for 

exemption by the due date, including extensions, for their 2024 income tax return. However, if Rev. Wolfe doesn't receive IRS approval 

for an exemption by April 15, 2025, their SE tax 

for 2024 is due by that date.

Example 3. In 2021, Rev. Riley Moss was 

ordained a minister and had $700 in net 

self-employment earnings as a minister. In 

2022, Rev. Moss received $1,000 as a minister, 

but their related expenses were over $1,000. 

Therefore, they had no net self-employment 

earnings as a minister in 2022. Also in 2022, 

Rev. Moss opened a bookstore and had $8,000 

in net self-employment earnings from the store. 

In 2023, they had net self-employment earnings 

of $1,500 as a minister and $10,000 net 

self-employment earnings from the store.

Rev. Moss had net earnings from self-employment in 2021 and 2023 that were $400 or 

more each year, and part of the self-employment earnings in each of those years was for 

their services as a minister. Thus, Rev. Moss 

must file their application for exemption by the 

due date, including extensions, for their 2023 income tax return. However, if Rev. Moss doesn’t 

receive IRS approval for an exemption by April 

15, 2024, their SE tax for 2023 is due by that 

date.

Death of individual. The right to file an application for exemption ends with an individual's 

death. A surviving spouse, executor, or administrator can't file an exemption application for a 

deceased clergy member.

Effective date of exemption. An approved exemption is effective for all tax years after 1967 in 

which you have $400 or more of net earnings 

from self-employment and any part of those 

earnings is for services as a member of the 

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clergy. Once the exemption is approved, it is irrevocable.

Example. Rev. Hayden Austin, ordained in 

2020, had $400 or more in net self-employment 

earnings, in both 2020 and 2023, part of which 

was from their services as a minister. Rev. Austin files an application for exemption on February 19, 2024. If an exemption is granted, it is effective for 2020 and the following years.

Refunds of SE tax. If, after receiving an approved Form 4361, you find that you overpaid 

SE tax, you can file a claim for refund on Form 

1040-X. Generally, for a refund, you must file 

Form 1040-X within 3 years from the date you 

filed the return or within 2 years from the date 

you paid the tax, whichever is later. A return you 

filed, or tax you paid, before the due date is 

considered to have been filed or paid on the 

due date.

If you file a claim after the 3-year period but 

within 2 years from the time you paid the tax, 

the credit or refund won't be more than the tax 

you paid within the 2 years immediately before 

you file the claim. 

Members of Recognized 

Religious Sects

If you are a member of a recognized religious 

sect, or a division of a recognized religious sect, 

you can apply for an exemption from payment of 

social security and Medicare taxes on both your 

self-employment income and the wages you 

earn from an employer who also has an exemption.

Exception. If you received social security benefits or payments, or anyone else received 

these benefits or payments based on your wages or self-employment income, you can't apply. 

However, if you pay your benefits back, you may 

be considered for exemption. Contact your local 

SSA office to find out the amount you must pay 

back.

Eligibility requirements. To claim this exemption from SE tax, all of the following requirements must be met.

1. You must file Form 4029, discussed later 

under Requesting Exemption—Form 

4029.

2. As a follower of the established teachings 

of the sect or division, you must be conscientiously opposed to accepting benefits of 

any private or public insurance that makes 

payments for death, disability, old age, retirement, or medical care, or provides 

services for medical care.

3. You must waive all rights to receive any social security payment or benefit and agree 

that no benefits or payments will be made 

to anyone else based on your wages and 

self-employment income.

4. The Commissioner of Social Security must 

determine that:

a. Your sect or division has the established teachings as described in (2) 

above;

Page 6 Publication 517 (2023)
b. It is the practice, and has been for a 

substantial period of time, for members of the sect or division to provide 

for their dependent members in a 

manner that is reasonable in view of 

the members' general level of living; 

and

c. The sect or division has existed at all 

times since December 31, 1950.

Requesting Exemption—Form 

4029

To request the exemption, file Form 4029 in triplicate (original and two copies) with the SSA at 

the address shown on the form. The sect or division must complete part of the form.

The IRS will return to you a copy of the 

Form 4029 that you filed indicating 

whether it has approved your exemption. If it is approved, keep the approved copy of 

Form 4029 in your permanent records.

When to file. You can file Form 4029 at any 

time.

If you have an approved exemption from SE 

tax and for some reason that approved exemption ended, you must file a new Form 4029 if 

you subsequently meet the eligibility requirements, discussed earlier. See Effective date of 

exemption, next, for information on when the 

newly approved exemption would become effective.

If you have a previously approved exemption 

from SE tax, you are considered to have met the 

requirements for exemption from social security 

and Medicare taxes on wages and don't need to 

file a new Form 4029.

Effective date of exemption. An approved exemption from SE tax is generally effective for all 

tax years beginning with the first year you meet 

the eligibility requirements discussed earlier. 

(For example, if you meet the eligibility requirements in 2021, file Form 4029 in 2022, and the 

IRS approves your exemption in 2023, your exemption is effective for tax year 2021 and all 

later years.)

The exemption will end if you fail to meet the 

eligibility requirements or if the Commissioner of 

Social Security determines that the sect or division fails to meet them. You must notify the IRS 

within 60 days if you are no longer a member of 

the religious group, or if you no longer follow the 

established teachings of this group. The exemption will end for the tax year in which you or your 

sect/division first fails to meet the eligibility requirements.

Refunds of SE tax paid. To get a refund of 

any SE tax you paid while the exemption was in 

effect, file Form 1040-X. For information on filing 

this form, see Refunds of SE tax under Requesting Exemption—Form 4361, earlier.

Exemption From FICA Taxes

Generally, under FICA, the employer and the 

employee each pay half of the social security 

and Medicare tax. Both the employee and the 

employer, if they meet the eligibility requirements, discussed earlier, can apply to be 

RECORDS

exempt from their share of FICA taxes on wages 

paid by the employer to the employee.

A partnership in which each partner holds a 

religious exemption from social security and 

Medicare tax is an employer for this purpose.

If the employer's application is approved, the exemption will apply only to 

FICA taxes on wages paid to employees who also received an approval of identical 

applications.

Information for employers. If you have an 

approved Form 4029 and you have an employee who has an approved Form 4029, don't 

report wages you paid to the employee as social security and Medicare wages.

If you have an employee who doesn't have 

an approved Form 4029, you must withhold the 

employee's share of social security and Medicare taxes and pay the employer's share.

Form W-2. When preparing a Form W-2, 

Wage and Tax Statement, for an employee with 

an approved Form 4029, enter “Form 4029” in 

box 14, “Other.” Don't make any entries in box 3, 

4, 5, or 6.

Forms 941, 943, and 944. If both you and 

your employee have received approved Forms 

4029, don't include these exempt wages on the 

following forms. Instead, follow the instructions 

given below.

• Form 941, Employer's QUARTERLY Federal Tax Return: check the box on line 4 

and enter “Form 4029” in the empty space 

below the checkbox.

• Form 943, Employer's Annual Federal Tax 

Return for Agricultural Employees: enter 

“Form 4029” on the dotted line next to the 

lines 2 and 4 entry spaces.

• Form 944, Employer's ANNUAL Federal 

Tax Return: check the box on line 3 and 

enter “Form 4029” in the empty space below the checkbox.

Effective date. An approved exemption 

from FICA becomes effective on the first day of 

the first calendar quarter after the quarter in 

which you file Form 4029. The exemption will 

end on the last day of the calendar quarter before the quarter in which the employer, employee, sect, or division fails to meet the requirements.

Self-Employment Tax: 

Figuring Net Earnings

There are two methods for figuring your net 

earnings from self-employment as a member of 

the clergy or a religious worker.

• Regular method.

• Nonfarm optional method.

You may find Worksheets 1 through 3 

helpful in figuring your net earnings 

from self-employment. Blank worksheets are in the back of this publication.

TIP TIP

Regular Method

Most people use the regular method. Under this 

method, figure your net earnings from self-employment by totaling your gross income for services you performed as a minister, a member of 

a religious order who hasn't taken a vow of poverty, or a Christian Science practitioner or 

reader. Then, subtract your allowable business 

deductions and multiply the difference by 

92.35% (0.9235). Use Schedule SE (Form 

1040) to figure your net earnings and SE tax.

If you are an employee of a church that elected to exclude you from FICA coverage, figure 

net earnings by multiplying your church wages 

shown on Form W-2 by 92.35% (0.9235). Don't 

reduce your wages by any business deductions 

when making this computation. Use Schedule SE (Form 1040), to figure your net earnings 

and SE tax.

If you have an approved exemption, or 

you are automatically exempt, don't include the income or deductions from 

ministerial services in figuring your net earnings 

from self-employment.

Amounts included in gross income. To figure your net earnings from self-employment (on 

Schedule SE (Form 1040)), include in gross income:

1. Salaries and fees for your ministerial services (discussed earlier); 

2. Offerings you receive for marriages, baptisms, funerals, masses, etc.;

3. The value of meals and lodging provided 

to you, your spouse, and your dependents 

for your employer's convenience;

4. The fair rental value of a parsonage provided to you (including the cost of utilities 

that are furnished) and the rental allowance (including an amount for payment of 

utilities) paid to you; and

5. Any amount a church pays toward your income tax or SE tax, other than withholding 

the amount from your salary. This amount 

is also subject to income tax.

For the income tax treatment of items (2) 

and (4), see Income Tax: Income and Expenses, later.

Example. Pastor Leslie Adams receives an 

annual salary of $39,000 as a full-time minister. 

The $39,000 includes $5,000 that is designated 

as a rental allowance to pay utilities. Their 

church owns a parsonage that has a fair rental 

value of $12,000 per year. The church gives 

Pastor Adams the use of the parsonage. Pastor 

Adams isn’t exempt from SE tax and must include $51,000 ($39,000 plus $12,000) when figuring their net earnings for SE tax purposes.

The results would be the same if, instead of 

the use of the parsonage and receipt of the 

rental allowance for utilities, Pastor Adams had 

received an annual salary of $51,000 of which 

$17,000 ($5,000 plus $12,000) per year was 

designated as a rental allowance.

Overseas duty. Your net earnings from 

self-employment are determined without any 

foreign earned income exclusion or the foreign 

CAUTION

!

Publication 517 (2023) Page 7
housing exclusion or deduction if you are a U.S. 

citizen or resident alien serving abroad and living in a foreign country.

For information on excluding foreign earned 

income or the foreign housing amount, see Pub. 

54.

Example. You were the minister of a U.S. 

church in Mexico. You earned $35,000 in that 

position and were able to exclude it all for income tax purposes under the foreign earned income exclusion. The United States doesn't 

have a social security agreement with Mexico, 

so you are subject to U.S. SE tax and must include $35,000 when figuring net earnings from 

self-employment.

Specified U.S. territories. The exclusion from 

gross income for amounts derived from American Samoa or Puerto Rico doesn't apply in figuring net earnings from self-employment. Also 

see Residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), and American Samoa, earlier, under U.S. Citizens and Resident 

and Nonresident Aliens.

Amounts not included in gross income. 

Don't include the following amounts in gross income when figuring your net earnings from 

self-employment.

• Offerings that others made to the church.

• Contributions by your church to a tax-sheltered annuity plan set up for you, including 

any salary reduction contributions (elective 

deferrals) that aren't included in your gross 

income.

• Pension payments or retirement allowances you receive for your past ministerial 

services.

• The rental value of a parsonage or a parsonage allowance provided to you after 

you retire.

Allowable deductions. When figuring your 

net earnings from self-employment, deduct all 

your expenses related to your ministerial services performed as a self-employed person. 

These are ministerial expenses you incurred 

while working other than as a common-law employee of the church. They include expenses incurred in performing marriages and baptisms, 

and in delivering speeches. Deduct these expenses on Schedule C (Form 1040), and carry 

the net amount to line 2 of Schedule SE (Form 

1040).

Wages earned as a common-law employee 

(explained earlier) of a church are generally 

subject to self-employment tax unless an exemption is requested, as discussed earlier under Exemption From Self-Employment (SE) Tax. 

Subtract any allowable expenses from those 

wages, include the net amount on line 2 of 

Schedule SE (Form 1040), and attach an explanation. Don't complete Schedule C (Form 

1040).

Employee reimbursement arrangements. If 

you received an advance, allowance, or reimbursement for your employee expenses, how 

you report this amount and your employee expenses depends on whether your employer reimbursed you under an accountable plan or a 

nonaccountable plan. Ask your employer if you 

aren't sure if it reimburses you using an accountable or a nonaccountable plan.

Accountable plans. To be an accountable 

plan, your employer's reimbursement arrangement must include all three of the following 

rules.

• Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your 

employer.

• You must adequately account to your employer for these expenses within a reasonable period of time.

• You must return any excess reimbursement 

or allowance within a reasonable period of 

time.

The reimbursement isn't reported on your 

Form W-2. Generally, if your expenses equal 

your reimbursement, you have no deduction. If 

your expenses are more than your reimbursement, you can deduct your excess expenses for 

SE tax and income tax purposes.

Nonaccountable plan. A nonaccountable 

plan is a reimbursement arrangement that 

doesn't meet one or more of the three rules listed under Accountable plans above. In addition, 

even if your employer has an accountable plan, 

the following payments will be treated as being 

paid under a nonaccountable plan.

• Excess reimbursements you fail to return to 

your employer.

• Reimbursement of nondeductible expenses related to your employer's business.

Your employer will combine any reimbursement paid to you under a nonaccountable plan 

with your wages, salary, or other compensation 

and report the combined total in box 1 of your 

Form W-2. Because reimbursements under a 

nonaccountable plan are included in your gross 

income, you can deduct your related expenses 

(for SE tax and income tax purposes) regardless of whether they are more than, less than, or 

equal to your reimbursement.

For more information on accountable and 

nonaccountable plans, see Pub. 463, Travel, 

Gift, and Car Expenses.

Married Couple Missionary Team

If both spouses are duly ordained, commissioned, or licensed ministers of a church and 

have an agreement that each will perform specific services for which they are paid jointly or 

separately, they must divide the self-employment income according to the agreement.

If the agreement is with one spouse only and 

the other spouse isn't paid for any specific duties, amounts received for their services are included only in the self-employment income of 

the spouse having the agreement.

Earnings Subject to SE Tax

For 2023, the maximum net earnings from 

self-employment subject to social security (old 

age, survivors, and disability insurance) tax is 

$160,200 minus any wages and tips you earned 

that were subject to social security tax. The tax 

rate for the social security part is 12.4%. In addition, all of your net earnings are subject to the 

Medicare (hospital insurance) part of the SE 

tax. This tax rate is 2.9%. The combined 

self-employment tax rate is 15.3% (12.4% social security tax + 2.9% Medicare tax).

Additional Medicare Tax. A 0.9% Additional 

Medicare Tax applies to Medicare wages, RRTA 

compensation, and self-employment income 

that are more than:

• $125,000 if married filing separately,

• $250,000 if married filing jointly, or

• $200,000 for any other filing status.

Medicare wages and self-employment income 

are combined to determine if income exceeds 

the threshold. A self-employment loss isn't considered for purposes of this tax. RRTA compensation is separately compared to the threshold. 

For more information, see Form 8959, Additional Medicare Tax, and its separate instructions.

Nonfarm Optional Method

You may be able to use the nonfarm optional 

method for figuring your net earnings from 

self-employment. In general, the nonfarm optional method is intended to permit continued 

coverage for social security and Medicare purposes when your income for the tax year is low.

You may use the nonfarm optional method if 

you meet all of the following tests.

1. You are self-employed on a regular basis. 

You meet this test if your actual net earnings from self-employment were $400 or 

more in at least 2 of the 3 tax years before 

the one for which you use this method. 

The net earnings can be from either farm 

or nonfarm earnings or both.

2. You have used this method less than 5 

prior years. (There is a 5-year lifetime 

limit.) The years don't have to be consecutive.

3. Your net nonfarm profits were:

a. Less than $7,103; and

b. Less than 72.189% of your gross nonfarm income.

If you meet all three tests, use Table 3 to figure your net earnings from self-employment under the nonfarm optional method.

Figuring Nonfarm Net 

Earnings

Table 3.

IF your gross 

nonfarm 

income is ...

THEN your net earnings 

are equal to ...

$9,840 or less two-thirds of your gross 

nonfarm income.

more than 

$9,840

$6,560.

Actual net earnings. Multiply your total earnings subject to SE tax by 92.35% (0.9235) to 

get actual net earnings. Actual net earnings are 

Page 8 Publication 517 (2023)
equivalent to net earnings under the “Regular 

Method.”

More information. For more information on 

the nonfarm optional method, see Pub. 334, Tax 

Guide for Small Business, and the Instructions 

for Schedule SE (Form 1040).

Income Tax: Income and 

Expenses

Some income and expense items are treated 

the same for both income tax and SE tax purposes and some are treated differently.

Note. For purposes of this section, references to members of the clergy are only to ministers or members of a religious order.

Income Items

The tax treatment of offerings and fees, outside 

earnings, rental allowances, rental value of a 

parsonage, earnings of members of religious orders, and foreign earned income is discussed 

here.

Offerings and Fees

If you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, 

masses, etc., in addition to your salary. If the offering is made to the religious institution, it isn't 

taxable to you.

Outside Earnings

If you are a member of a religious organization 

and you give your outside earnings to the organization, you still must include the earnings in 

your income. However, you may be entitled to a 

charitable contribution deduction for the amount 

paid to the organization. For more information, 

see Pub. 526.

Exclusion of Rental Allowance and 

Fair Rental Value of a Parsonage

Ordained, commissioned, or licensed ministers 

of the gospel may be able to exclude from income tax the rental allowance or fair rental 

value of a parsonage that is provided to them as 

pay for their services. Services include:

• Ministerial services, discussed earlier;

• Administrative duties and teaching at theological seminaries; and

• The ordinary duties of a minister performed as an employee of the United 

States (other than as a chaplain in the 

Armed Forces), a state, territory, political 

subdivision, or the District of Columbia.

This exclusion applies only for income tax 

purposes. It doesn't apply for SE tax purposes, 

as discussed earlier under Amounts included in 

gross income under Self-Employment Tax: Figuring Net Earnings.

Designation requirement. The church or organization that employs you must officially designate the payment as a housing allowance before it makes the payment. It must designate a 

definite amount. It can't determine the amount 

of the housing allowance at a later date. If the 

church or organization doesn't officially designate a definite amount as a housing allowance, 

you must include your total salary in your income.

If you are employed and paid by a local congregation, a resolution by a national church 

agency of your denomination doesn't effectively 

designate a housing allowance for you. The local congregation must officially designate the 

part of your salary that is a housing allowance. 

However, a resolution of a national church 

agency can designate your housing allowance if 

you are directly employed by the national 

agency.

An official designation of an amount as a 

housing or rental allowance may be shown in an 

employment contract, in the minutes of a church 

or qualified organization, in a budget, or in any 

official action taken in advance of payment of 

the allowance. A designation is sufficient if it 

permits a payment to be identified as a payment 

of a rental or housing allowance as distinguished from salary or other remuneration.

Informal discussions don't amount to an official designation. However, the facts and circumstances of a designation may demonstrate that 

the designation was official.

A church or employing organization 

may report the rental allowance or fair 

rental value of the parsonage (and utilities) in box 14 of Form W-2.

Rental allowances. If you receive in your salary an amount officially designated as a rental 

allowance (including an amount to pay utility 

costs), you can exclude the allowance from your 

gross income if:

• You use the amount to provide or rent a 

home, and

• The amount isn't more than reasonable 

pay for your services.

The amount you exclude can't be more than 

the fair rental value of the home, including furnishings, plus the cost of utilities.

Fair rental value of parsonage. You can exclude from gross income the fair rental value of 

a house or parsonage, including utilities, furnished to you as part of your earnings. However, the exclusion can't be more than the reasonable pay for your services. If you pay for the 

utilities, you can exclude any allowance designated for utility costs, up to your actual cost.

Example. Rev. Layne Baker is a full-time 

minister. The church allows Rev. Baker to use a 

parsonage that has an annual fair rental value of 

$24,000. The church pays them an annual salary of $67,000, of which $7,500 is designated 

for utility costs. Their actual utility costs during 

the year were $7,000.

For income tax purposes, Rev. Baker excludes $31,000 from gross income ($24,000 fair 

rental value of the parsonage plus $7,000 from 

the allowance for utility costs). Rev. Baker will 

report $60,000 ($59,500 salary plus $500 of unused utility allowance). However, their income 

TIP

for SE tax purposes is $91,000 ($67,000 salary 

+ $24,000 fair rental value of the parsonage).

Home ownership. If you own your home and 

you receive as part of your salary a housing or 

rental allowance, you may exclude from gross 

income the smallest of:

• The amount actually used to provide a 

home;

• The amount officially designated as a 

rental allowance; or

• The fair rental value of the home, including 

furnishings, utilities, garage, etc.

Excess rental allowance. You must include in gross income the amount of any rental 

allowance that is more than the smallest of:

• Your reasonable salary,

• The fair rental value of the home plus utilities, or

• The amount actually used to provide a 

home.

Include this amount in the total on Form 

1040 or 1040-SR, line 1h. On the dotted line 

next to line 1h, enter “Excess allowance” and 

the amount.

You may deduct the home mortgage interest and real estate taxes paid on 

your home even though you pay all or 

part of those expenses with funds you get 

through a tax-free rental or parsonage allowance. However, you can only deduct these expenses as itemized deductions on Schedule A 

(Form 1040).

Retired ministers. If you are a retired minister, 

you can exclude from your gross income the 

rental value of a home (plus utilities) furnished 

to you by your church as a part of your pay for 

past services, or the part of your pension that 

was designated as a rental allowance. However, 

a minister's surviving spouse can't exclude the 

rental value unless the rental value is for ministerial services they perform or performed.

Teachers or administrators. If you are a minister employed as a teacher or administrator by 

a church school, college, or university, you are 

performing ministerial services for purposes of 

the housing exclusion. However, if you perform 

services as a teacher or administrator on the 

faculty of a nonchurch college, you can't exclude from your income a housing allowance or 

the value of a home that the college provides to 

you.

If you live in faculty lodging as an employee of an educational institution or 

academic health center, all or part of 

the value of that lodging may be nontaxable under a different rule. In Pub. 525, see Faculty 

lodging in the discussion on meals and lodging 

under Fringe Benefits.

If you serve as a minister of music or minister of education, or serve in an administrative or 

other function of your religious organization, but 

aren't authorized to perform substantially all of 

the religious duties of an ordained minister in 

your church (even if you are commissioned as a 

minister of the gospel), the housing exclusion 

doesn't apply to you.

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Publication 517 (2023) Page 9
Theological students. If you are a theological 

student serving a required internship as a 

part-time or assistant pastor, you can't exclude 

a parsonage or rental allowance from your income unless you are ordained, commissioned, 

or licensed as a minister.

Traveling evangelists. You can exclude a designated rental allowance from out-of-town 

churches if you meet all of the following requirements.

• You are an ordained minister.

• You perform ministerial services at 

churches located away from your community.

• You actually use the rental allowance to 

maintain your permanent home.

Cantors. If you have a bona fide commission 

and your congregation employs you on a 

full-time basis to perform substantially all the religious functions of the Jewish faith, you can exclude a rental allowance from your gross income.

Earnings—Members of Religious 

Orders

Your earnings may be exempt from both income 

tax and SE tax if you are a member of a religious order who:

• Has taken a vow of poverty,

• Receives earnings for services performed 

as an agent of the order and in the exercise 

of duties required by the order, and

• Renounces the earnings and gives them to 

the order.

See Members of Religious Orders, earlier, 

under Social Security Coverage.

Foreign Earned Income

Certain income may be exempt from income tax 

if you work in a foreign country or in a specified 

U.S. territory. Pub. 54 discusses the foreign 

earned income exclusion. Pub. 570, Tax Guide 

for Individuals With Income From U.S. Territories, covers the rules for taxpayers with income 

from U.S. territories. You can get these free publications from the IRS at IRS.gov/Forms or from 

most U.S. embassies or consulates.

Expense Items

The tax treatment of expenses allocable to 

tax-free income and health insurance costs is 

discussed here.

Expenses Allocable to Tax-Free 

Income

If you receive a rental or parsonage allowance 

that is exempt from income tax (tax free), you 

must allocate a portion of the expenses of operating your ministry to that tax-free income. You 

can't deduct the portion of your expenses that 

you allocate to your tax-free rental or parsonage 

allowance.

Exception. This rule doesn't apply to your deductions for home mortgage interest or real estate taxes on your home.

Figuring the allocation. Figure the portion of 

your otherwise deductible expenses that you 

can't deduct (because you must allocate that 

portion to tax-free income) by multiplying the 

expenses by the following fraction:

Tax-free rental or 

parsonage allowance

All income (taxable 

and tax free) earned 

from your ministry

When figuring the allocation, include the income and expenses related to the ministerial 

duties you perform both as an employee and as 

a self-employed person.

Reduce your otherwise deductible expenses only in figuring your income 

tax, not your SE tax.

Example. Rev. Peyton Ashford received 

$40,000 in earnings for ministerial services consisting of a $28,000 salary for ministerial services performed as an employee, $2,000 for 

weddings and baptisms performed as a 

self-employed person, and a $10,000 tax-free 

parsonage allowance. Rev. Ashford incurred 

$4,000 of unreimbursed expenses connected 

with their earnings for ministerial services: 

$3,500 of the $4,000 is for employee expenses 

related to their ministerial salary. Rev. Ashford is 

no longer able to deduct the $3,500 incurred for 

employee expenses related to their ministerial 

salary since miscellaneous itemized deductions 

aren’t allowed for tax years 2018 through 2025 

pursuant to section 67(g) of the Internal Revenue Code. Since the $500 is related to the weddings and baptisms they performed as a 

self-employed person, this amount is otherwise 

deductible.

Rev. Ashford figures the nondeductible 

(tax-free) portion of expenses related to their 

wedding and baptism income as follows:

($10,000 ÷ $40,000) × $500 = $125

Required statement. If you receive a tax-free 

rental or parsonage allowance and have ministerial expenses, attach a statement to your tax 

return. The statement must contain all of the following information.

• A list of each item of taxable ministerial income by source (such as wages, salary, 

weddings, baptisms, etc.) plus the amount.

• A list of each item of tax-free ministerial income by source (parsonage allowance) 

plus the amount.

• A list of each item of otherwise deductible 

ministerial expenses plus the amount.

• How you figured the nondeductible part of 

your otherwise deductible expenses.

• A statement that the other deductions 

claimed on your tax return aren't allocable 

to your tax-free income.

At the end of this publication, you will find 

blank worksheets for your own use.

Health Insurance Costs of 

Self-Employed Ministers

If you are self-employed, you may be able to deduct the amount you paid in 2023 for medical 

TIP

and dental insurance and qualified long-term 

care insurance for you, your spouse, your dependents, and any child you may have who, as 

of the end of the tax year, had not attained age 

27.

For purposes of this deduction, your child 

must be an individual who is your son, daughter, stepson, stepdaughter, or eligible foster 

child. An individual who has been legally adopted by you (or placed with you for adoption) will 

be treated as your child.

If you qualify, you can take this deduction as 

an adjustment to income on Schedule 1 (Form 

1040), line 17. See the Instructions for Form 

1040 to figure your deduction.

The following special rules apply to the 

self-employed health insurance deduction.

• You can't take a medical expense deduction on Schedule A (Form 1040) for any expenses you claim for purposes of the 

self-employed health insurance deduction.

• You can't take the deduction for any month 

you are eligible to participate in a subsidized plan of your (or your spouse's) employer.

• The deduction can't exceed your net earnings from the business under which the insurance plan is established. Your net earnings under this rule don't include the 

income you earned as a common-law employee (discussed earlier) of a church.

More information. For more information 

about the self-employed health insurance deduction, see Form 7206 and its instructions.

Deduction for SE Tax

You can deduct one-half of your SE tax in figuring AGI. This is an income tax deduction only, 

which is claimed on Schedule 1 (Form 1040), 

line 15. This deduction doesn’t include taxes 

imposed by section 1401(b)(2), pursuant to 

section 164(f)(2) of the Internal Revenue Code.

Don't claim this deduction in figuring 

net earnings from self-employment 

subject to SE tax.

Income Tax Withholding and 

Estimated Tax

The federal income tax is a pay-as-you-go tax. 

You must pay the tax as you earn or receive income during the year. An employee usually has 

income tax withheld from their wages or salary. 

However, your salary isn't subject to federal income tax withholding if both of the following 

conditions apply.

• You are a duly ordained, commissioned, or 

licensed minister, a member of a religious 

order (who hasn't taken a vow of poverty), 

or a Christian Science practitioner or 

reader.

• Your salary is for ministerial services (see 

Ministerial Services, earlier).

If your salary isn't subject to withholding, or if 

you don't pay enough tax through withholding, 

you may need to make estimated tax payments 

CAUTION

!

Page 10 Publication 517 (2023)
to avoid penalties for not paying enough tax as 

you earn your income.

You must generally make estimated tax payments if you expect to owe taxes, including SE 

tax, of $1,000 or more, when you file your return.

Determine your estimated tax by using the 

worksheets in Pub. 505, Tax Withholding and 

Estimated Tax. You can also use the IRS Withholding Estimator at IRS.gov/W4App. Pay the 

entire estimated tax for 2024 or the first installment by April 15, 2024. See Form 1040-ES for 

the different payment methods. The April 15 

date applies whether or not your tax home and 

your abode are outside the United States and 

Puerto Rico. For more information, see chapter 2 of Pub. 505.

If you perform your services as a common-law employee of the church and your salary isn't subject to income tax withholding, you 

can enter into a voluntary withholding agreement with the church to cover any income and 

SE tax that may be due. 

Filing Your Return

You must file an income tax return for 2023 if 

your gross income was at least the amount 

shown in the third column of Table 4.

Additional requirements. Even if your income was less than the amount shown in Table 4, you must file an income tax return on 

Form 1040 or 1040-SR, and attach a completed 

Schedule SE (Form 1040), if:

• You aren't exempt from SE tax, and you 

have net earnings from self-employment 

(discussed earlier under Self-Employment 

Tax: Figuring Net Earnings) of $400 or 

more in the tax year;

• You are exempt from SE tax on earnings 

from ministerial services and you have 

$400 or more of other net earnings subject 

to SE tax; or

• You had wages of $108.28 or more from an 

electing church or church-controlled organization (see Coverage of Religious Workers 

(Church Employees), earlier, under Social 

Security Coverage).

Self-employment tax. For services in the exercise of the ministry, members of the clergy receive a Form W-2, but do not have social security or Medicare taxes withheld. You must pay 

social security and Medicare taxes by filing 

Schedule SE (Form 1040) with your return.

If you filed Form 4361 and didn't receive approval from the IRS, you must pay SE tax on 

your ministerial earnings, as explained earlier. 

You should report ministerial earnings and expenses from nonemployee ministerial services 

on Schedule C (Form 1040). You should then 

carry the net amount over to line 2 of Schedule SE (Form 1040). However, if you were a duly 

ordained minister who was an employee of a 

church and you must pay SE tax on the wages 

you earned for those services, don't report 

those wages on Schedule C (Form 1040). Instead, report those wages less any allowable 

expenses on line 2 of Schedule SE (Form 1040) 

and attach an explanation.

Exemption from SE tax. If you filed Form 

4361 and received IRS approval not to be taxed 

on your ministerial earnings, and you don't have 

any other income subject to SE tax, don't file 

Schedule SE (Form 1040). Instead, enter “Exempt—Form 4361” on the dotted line next to 

Schedule 2 (Form 1040), line 4. However, if you 

had net earnings from another trade or business of $400 or more subject to SE tax, see line 

A at the top of Schedule SE (Form 1040).

If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and 

you don't have any other income subject to SE 

tax, don't file Schedule SE (Form 1040). Instead, enter “Exempt—Form 4029” on the dotted line next to Schedule 2 (Form 1040), line 4.

More information. For more information on filing your return, including when and where to file 

it, see the Instructions for Form 1040.

Retirement Savings 

Arrangements

Retirement savings arrangements are plans that 

offer you a tax-favored way to save for your retirement. You can generally deduct your contributions to the plan. Your contributions and the 

earnings on them generally aren't taxed until 

they are distributed. However, if the plan permits, you may choose to have contributions 

made to a Roth contribution program, and those 

contributions won't be excluded from your income, but will be distributed tax free if you satisfy certain requirements.

Retirement plans for the self-employed. To 

set up one of the following plans, you must be 

self-employed.

• SEP (simplified employee pension) plan.

• SIMPLE (savings incentive match plan for 

employees) plan.

• Qualified retirement plan (also called a 

Keogh or H.R. 10 plan), including a 401(k) 

plan.

The common-law rules determine whether 

you are an employee or a self-employed person 

for purposes of setting up a retirement plan. 

See Employment status for other tax purposes 

under Coverage of Members of the Clergy, 

Table 4. 2023 Filing Requirements for Most Taxpayers

IF your filing status is...

AND at the end of 2023

you were*...

THEN file a return if your gross income** was 

at least...

Single under age 65

65 or older

$13,850

15,700

Married filing jointly***

under 65 (both spouses)

65 or older (one spouse)

65 or older (both spouses)

$27,700

29,200

30,700

Married filing separately any age $5

Head of household under 65

65 or older

$20,800

22,650

Qualifying surviving spouse under 65

65 or older

$27,700

29,200

* If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse died in 2023 or you are preparing a return for 

someone who died in 2023, see Pub. 501, Dependents, Standard Deduction, and Filing Information.)

** Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from 

sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Don’t include any social security benefits 

unless (a) you are married filing a separate return and you lived with your spouse at any time in 2023, or (b) one-half of your social security benefits plus your 

other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for Form 

1040, lines 6a and 6b, to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, 

reported on Form 8949 or Schedule D (Form 1040). Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7; or 

Schedule F (Form 1040), line 9. But, in figuring gross income, don't reduce your income by any losses, including any loss on Schedule C (Form 1040), 

line 7; or Schedule F (Form 1040), line 9.

*** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross income was at least $5, you must file a return 

regardless of your age.

Publication 517 (2023) Page 11
earlier. This result is true even if your compensation for ministerial services (defined earlier) is 

subject to SE tax.

For example, if a congregation pays you a 

salary for performing ministerial services and 

you are subject to the congregation's control, 

you are generally a common-law employee. You 

aren't a self-employed person for purposes of 

setting up a retirement plan. This result is true 

even if your salary is subject to SE tax.

On the other hand, amounts received directly from members of the congregation, such 

as fees for performing marriages, baptisms, or 

other personal services that you report on 

Schedule C (Form 1040), are earnings from 

self-employment for all tax purposes.

Contributions generally may be made on a 

pre-tax basis or, if permitted by the plan, they 

may be made as a Roth contribution on an after-tax basis. For more information on establishing a SEP, SIMPLE, or qualified retirement plan, 

see Pub. 560, Retirement Plans for Small Business.

Individual retirement arrangements (IRAs). 

The traditional IRA and the Roth IRA are two individual retirement arrangements you can use 

to save money for your retirement. Generally, 

your maximum contribution for 2023 to either of 

these plans (or to a combination of the two) is 

the smaller of your taxable compensation or 

$6,500 ($7,500 if you are age 50 or older by the 

end of 2023).

However, your maximum contribution to a 

Roth IRA will be further reduced or eliminated if 

your AGI is above a certain amount. You can't 

deduct Roth IRA contributions, but if you satisfy 

certain requirements, all earnings in the Roth 

IRA are tax free and neither your nondeductible 

contributions nor any earnings on them are taxable when distributed.

If you contribute to a traditional IRA, your 

contribution may be deductible. However, your 

deduction may be reduced or eliminated if you 

or your spouse is covered by an employer retirement plan (including, but not limited to, a SEP, 

SIMPLE, or qualified retirement plan).

For more information on IRAs, see Pub. 

590-A, Contributions to Individual Retirement 

Arrangements.

Tax-sheltered annuity plans. Church employees, members of religious orders, and duly ordained, commissioned, or licensed ministers 

working as ministers or chaplains can generally 

participate in tax-sheltered annuity (403(b)) 

plans. For more information, see Pub. 571, 

Tax-Sheltered Annuity Plans.

Deducting contributions to tax-sheltered 

annuity plans. If you are an employee, your 

employer may exclude allowable contributions 

to a 403(b) plan from your income. These contributions won't be included in your total wages 

on your Form W-2, but you will pay tax on distributions from your plan. However, if you choose 

to have contributions made to a Roth contribution program, they won't be excluded from your 

income, but will be distributed tax free if you satisfy certain requirements.

You may also participate in a 403(b) plan if 

you are a minister or chaplain and, in the exercise of your ministry, you are either self-employed or employed by an organization that isn't 

exempt from tax under section 501(c)(3) of the 

Internal Revenue Code. If either situation applies to you, you can deduct your contributions 

to a 403(b) plan as explained next.

• If you are self-employed, deduct your contributions on Schedule 1 (Form 1040), 

line 16.

• If you aren't self-employed and your employer doesn't exclude your contributions 

from your earned income, deduct your contributions on Schedule 1 (Form 1040), 

line 24g.

Retirement savings contributions credit. 

You may be able to take a tax credit of up to 

$1,000 (up to $2,000 if filing jointly) for certain 

contributions you make to any of the retirement 

plans or IRAs discussed earlier. The credit is 

based on the contributions you make and your 

credit rate. Your credit rate can be as low as 

10% or as high as 50%, depending on your filing status and AGI. Figure the credit on Form 

8880, Credit for Qualified Retirement Savings 

Contributions.

You can't take the credit if any of the following apply.

1. You were born after January 1, 2006.

2. You were a student who, during any part of 

5 calendar months (not necessarily consecutive) of 2023:

a. Was enrolled as a full-time student at 

a school that has a regular teaching 

staff, course of study, and regularly 

enrolled body of students in attendance; or

b. Took a full-time, on-farm training 

course given by a school that has a 

regular teaching staff, course of study, 

and regularly enrolled body of students in attendance, or a state, 

county, or local government agency.

3. Someone, such as your parent(s), claims 

an exemption for you on their 2023 tax return.

4. Your AGI for 2023 is more than:

a. $73,000, if your filing status is married 

filing jointly;

b. $54,750, if your filing status is head of 

household; or

c. $36,500, if your filing status is single, 

married filing separately, or qualifying 

surviving spouse.

School. A school includes technical, trade, 

and mechanical schools. It doesn't include 

on-the-job training courses, correspondence 

schools, or schools offering courses only 

through the Internet.

Full-time student. You are a full-time student if you are enrolled for the number of hours 

or courses the school considers to be full time.

AGI. When figuring AGI, you must add 

back any exclusion or deduction claimed for the 

year for:

1. Foreign earned income,

2. Foreign housing costs,

3. Income of bona fide residents of American 

Samoa, and

4. Income of bona fide residents of Puerto 

Rico.

More information. For more information 

about the credit, see Pub. 590-A.

Earned Income Credit 

(EIC)

The EIC is a tax credit for certain people who 

work. If you qualify for it, the EIC reduces the tax 

you owe. The EIC may give you a refund even if 

you don't owe any tax.

You can't take the credit for 2023 if your 

earned income (or adjusted gross income) is:

• $17,640 or more ($24,210 or more if married filing jointly) and you don't have a qualifying child,

• $46,560 or more ($53,120 or more if married filing jointly) and you have one qualifying child,

• $52,918 or more ($59,478 or more if married filing jointly) and you have two qualifying children, or

• $56,838 or more ($63,398 if married filing 

jointly) and you have three or more qualifying children.

Earned income. Earned income includes 

your:

1. Wages, salaries, tips, and other taxable 

employee compensation (even if these 

amounts are exempt from FICA or SECA 

under an approved Form 4029 or 4361); 

and

2. Net earnings from self-employment that 

are not exempt from SECA (you don't 

have an approved Form 4029 or 4361) that 

you report on Schedule SE (Form 1040), 

line 3, with the following adjustments.

a. Subtract the amount you claimed (or 

should have claimed) on Schedule 1 

(Form 1040), line 15, for the deductible part of your SE tax.

b. Add any amount from Schedule SE 

(Form 1040), line 4b and line 5a.

If you are a minister and have an approved Form 4361, your earned income will still include wages and salaries earned as an employee, but it will not 

include amounts you received for nonemployee 

ministerial duties, such as fees for performing 

marriages and baptisms, and honoraria for delivering speeches.

More information. For detailed rules on this 

credit, see Pub. 596. To figure the amount of 

your credit, you can either fill out a worksheet or 

have the IRS figure the credit for you. See Pub. 

596 for the steps you must follow to have the 

IRS figure your EIC.

CAUTION

!

Page 12 Publication 517 (2023)
Worksheets

These worksheets are provided to help you figure your taxable ministerial income, your allowable deductions, and your net self-employment income. 

Figuring the Percentage of Tax-Free Income

Note. For each line, enter the appropriate amount in all boxes that aren't shaded.

Worksheet 1.

Source of Income

(a)

Taxable

(b)

Tax-free

(c)

Total

1  W-2 salary as a minister (from box 1 of Form W-2) 1 

2  Gross income from weddings, baptisms, writing, lecturing, etc. (from line 1 of 

Schedule C) 2 

Note. Complete either lines 3a through 3e or lines 4a through 4i.

• If your church provides you with a parsonage, complete lines 3a through 3e.

• If, instead of providing a parsonage, your church provides you with a rental or parsonage allowance, complete lines 4a through 4i.

3a FRV* of parsonage provided by church 3a

b Utility allowance, if any 3b

c Actual expenses for utilities 3c

d Enter the smaller of line 3b or 3c 3d

e Excess utility allowance (subtract line 3d from line 3b) 3e

4a Parsonage or rental allowance 4a

b Utility allowance, if separate 4b

c Total allowance (add lines 4a and 4b) 4c

d Actual expenses for parsonage 4d

e Actual expenses for utilities 4e

f Total actual expenses for parsonage and utilities (add lines 4d and 4e) 4f 

g FRV* of home, plus the cost of utilities 4g

h Enter the smaller of line 4c, 4f, or 4g 4h

i Excess allowance (subtract line 4h from line 4c) 4i 

5  Ministerial income (for columns (a), (b), and (c), add lines 1 through 4i) 5 

6  Percentage of tax-free income: Total tax-free income (line 5(b)) $

 Total income (line 5(c)) $ =  %** 

* FRV (Fair Rental Value): As determined objectively and between unrelated parties, what it would cost to rent a comparable home (including 

furnishings) in a similar location.

** This percentage of your ministerial expenses won't be deductible. Use Worksheets 2 and 3 to figure your allowable deductions.

Worksheet 2. Figuring the Allowable Deduction for Schedule C Expenses

1  Percentage of expenses that are nondeductible (from Worksheet 1, line 6): %

2  Business use of car for entire year: miles × 65.5 cents ($0.655) 2 

3  Meals: $ × 50% (0.50) 3 

4  Other expenses (list item and amount)

a 4a

b 4b

c 4c

d 4d

e 4e

f Total other expenses (add lines 4a through 4e) 4f 

5  Total Schedule C expenses (add lines 2, 3, and 4f) 5 

6  Nondeductible part of Schedule C expenses (multiply line 5 by the percent in line 1) 6 

7  Deduction allowed.* Subtract line 6 from line 5. Enter the result here and on Schedule C, line 27a. 7 

* None of the other deductions claimed in this return are allocable to tax-free income.

Publication 517 (2023) Page 13
Worksheet 3. Figuring Net Self-Employment Income for Schedule SE (Form 1040)

1  W-2 salary as a minister (from box 1 of Form W-2) 1 

2  Net profit from Schedule C, line 31 2 

3a Parsonage or rental allowance (from Worksheet 1, line 3a or 4a) 3a

b Utility allowance (from Worksheet 1, line 3b or 4b) 3b

c Total allowance (add lines 3a and 3b) 3c

4  Add lines 1, 2, and 3c 4 

5  Schedule C expenses allocable to tax-free income (from Worksheet 2, line 6) 5 

6  Total unreimbursed employee business expenses 6 

7  Total business expenses not deducted in lines 1 and 2 above (add lines 5 and 6) 7 

8  Net self-employment income. Subtract line 7 from line 4. Enter here and on Schedule SE (Form 

1040), line 2. 8 

How To Get Tax Help

If you have questions about a tax issue; need 

help preparing your tax return; or want to download free publications, forms, or instructions, go 

to IRS.gov to find resources that can help you 

right away.

Preparing and filing your tax return. After 

receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 

1099-NEC, etc.); unemployment compensation 

statements (by mail or in a digital format) or 

other government payment statements (Form 

1099-G); and interest, dividend, and retirement 

statements from banks and investment firms 

(Forms 1099), you have several options to 

choose from to prepare and file your tax return. 

You can prepare the tax return yourself, see if 

you qualify for free tax preparation, or hire a tax 

professional to prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online 

or in your local community, if you qualify, include 

the following.

• Free File. This program lets you prepare 

and file your federal individual income tax 

return for free using software or Free File 

Fillable Forms. However, state tax preparation may not be available through Free File. 

Go to IRS.gov/FreeFile to see if you qualify 

for free online federal tax preparation, e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to 

people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help 

preparing their own tax returns. Go to 

IRS.gov/VITA, download the free IRS2Go 

app, or call 800-906-9887 for information 

on free tax return preparation.

• TCE. The Tax Counseling for the Elderly 

(TCE) program offers free tax help for all 

taxpayers, particularly those who are 60 

years of age and older. TCE volunteers 

specialize in answering questions about 

pensions and retirement-related issues 

unique to seniors. Go to IRS.gov/TCE or 

download the free IRS2Go app for information on free tax return preparation.

• MilTax. Members of the U.S. Armed 

Forces and qualified veterans may use 

MilTax, a free tax service offered by the 

Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/

MilTax).

Also, the IRS offers Free Fillable Forms, 

which can be completed online and then 

e-filed regardless of income.

Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant 

(IRS.gov/EITCAssistant) determines if 

you’re eligible for the earned income credit 

(EIC).

• The Online EIN Application (IRS.gov/EIN) 

helps you get an employer identification 

number (EIN) at no cost.

• The Tax Withholding Estimator (IRS.gov/

W4App) makes it easier for you to estimate 

the federal income tax you want your employer to withhold from your paycheck. 

This is tax withholding. See how your withholding affects your refund, take-home pay, 

or tax due.

• The First-Time Homebuyer Credit Account 

Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and 

account balance.

• The Sales Tax Deduction Calculator 

(IRS.gov/SalesTax) figures the amount you 

can claim if you itemize deductions on 

Schedule A (Form 1040).

Getting answers to your tax questions. On IRS.gov, you can get 

up-to-date information on current 

events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you 

get answers to some of the most common 

tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, 

a tool that will ask you questions and, 

based on your input, provide answers on a 

number of tax topics.

• IRS.gov/Forms: Find forms, instructions, 

and publications. You will find details on 

the most recent tax changes and interactive links to help you find answers to your 

questions.

• You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return? 

There are various types of tax return preparers, 

including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If 

you choose to have someone prepare your tax 

return, choose that preparer wisely. A paid tax 

preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs 

the return, you're ultimately responsible 

for providing all the information required for the preparer to accurately prepare 

your return and for the accuracy of every item 

reported on the return. Anyone paid to prepare 

tax returns for others should have a thorough 

understanding of tax matters. For more information on how to choose a tax preparer, go to Tips 

for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business 

Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/

employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, 

and individuals who process Form W-2, Wage 

and Tax Statement, and Form W-2c, Corrected 

Wage and Tax Statement.

IRS social media. Go to IRS.gov/SocialMedia 

to see the various social media tools the IRS 

uses to share the latest information on tax 

changes, scam alerts, initiatives, products, and 

services. At the IRS, privacy and security are 

our highest priority. We use these tools to share 

public information with you. Don’t post your social security number (SSN) or other confidential 

information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide 

short, informative videos on various tax-related 

topics in English, Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations for individuals, small businesses, 

and tax professionals.

CAUTION

!

Page 14 Publication 517 (2023)
Online tax information in other languages. 

You can find information on IRS.gov/

MyLanguage if English isn’t your native language.

Free Over-the-Phone Interpreter (OPI) Service. The IRS is committed to serving taxpayers 

with limited-English proficiency (LEP) by offering OPI services. The OPI Service is a federally 

funded program and is available at Taxpayer 

Assistance Centers (TACs), most IRS offices, 

and every VITA/TCE tax return site. The OPI 

Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information about accessibility services can call 

833-690-0598. The Accessibility Helpline can 

answer questions related to current and future 

accessibility products and services available in 

alternative media formats (for example, braille, 

large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. 

For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to 

receive certain types of written correspondence 

in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications. Go to 

IRS.gov/Forms to view, download, or print all 

the forms, instructions, and publications you 

may need. Or, you can go to IRS.gov/

OrderForms to place an order.

Getting tax publications and instructions in 

eBook format. Download and view most tax 

publications and instructions (including the Instructions for Form 1040) on mobile devices as 

eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's 

iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and 

eBook functionality may not operate as intended.

Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax 

account.

• View the amount you owe and a breakdown by tax year.

• See payment plan details or apply for a 

new payment plan.

• Make a payment or view 5 years of payment history and any pending or scheduled payments.

• Access your tax records, including key 

data from your most recent tax return, and 

transcripts.

• View digital copies of select notices from 

the IRS.

• Approve or reject authorization requests 

from tax professionals.

• View your address on file or manage your 

communication preferences.

Get a transcript of your return. With an online account, you can access a variety of information to help you during the filing season. You 

can get a transcript, review your most recently 

filed tax return, and get your adjusted gross income. Create or access your online account at 

IRS.gov/Account.

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS online account. For more information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The safest and easiest 

way to receive a tax refund is to e-file and 

choose direct deposit, which securely and electronically transfers your refund directly into your 

financial account. Direct deposit also avoids the 

possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. 

Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit 

union that can open an account online.

Reporting and resolving your tax-related 

identity theft issues. 

• Tax-related identity theft happens when 

someone steals your personal information 

to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by email, text messages (including 

shortened links), telephone calls, or social 

media channels to request or verify personal or financial information. This includes 

requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information 

on identity theft and data security protection for taxpayers, tax professionals, and 

businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of 

tax-related identity theft, you can learn 

what steps you should take.

• Get an Identity Protection PIN (IP PIN). IP 

PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their 

SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return 

with your SSN. To learn more, go to 

IRS.gov/IPPIN.

Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your 

mobile device to check your refund status.

• Call the automated refund hotline at 

800-829-1954.

The IRS can’t issue refunds before 

mid-February for returns that claimed 

the EIC or the additional child tax credit 

(ACTC). This applies to the entire refund, not 

just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax 

must be remitted to the IRS in U.S. dollars. 

Digital assets are not accepted. Go to IRS.gov/

Payments for information on how to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill 

or estimated tax payment directly from your 

checking or savings account at no cost to 

you.

• Debit Card, Credit Card, or Digital Wallet: 

Choose an approved payment processor 

to pay online or by phone.

• Electronic Funds Withdrawal: Schedule a 

payment when filing your federal taxes using tax return preparation software or 

through a tax professional.

• Electronic Federal Tax Payment System: 

Best option for businesses. Enrollment is 

required.

• Check or Money Order: Mail your payment 

to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes 

with cash at a participating retail store.

• Same-Day Wire: You may be able to do 

same-day wire from your financial institution. Contact your financial institution for 

availability, cost, and time frames.

Note. The IRS uses the latest encryption 

technology to ensure that the electronic payments you make online, by phone, or from a 

mobile device using the IRS2Go app are safe 

and secure. Paying electronically is quick, easy, 

and faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/

Payments for more information about your options.

• Apply for an online payment agreement 

(IRS.gov/OPA) to meet your tax obligation 

in monthly installments if you can’t pay 

your taxes in full today. Once you complete 

the online process, you will receive immediate notification of whether your agreement has been approved.

• Use the Offer in Compromise Pre-Qualifier 

to see if you can settle your tax debt for 

less than the full amount you owe. For 

more information on the Offer in Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/

Form1040X for information and updates.

Checking the status of your amended return. Go to IRS.gov/WMAR to track the status 

of Form 1040-X amended returns.

It can take up to 3 weeks from the date 

you filed your amended return for it to 

show up in our system, and processing 

it can take up to 16 weeks.

Understanding an IRS notice or letter 

you’ve received. Go to IRS.gov/Notices to find 

CAUTION

!

CAUTION

!

Publication 517 (2023) Page 15
additional information about responding to an 

IRS notice or letter.

Responding to an IRS notice or letter. You 

can now upload responses to all notices and 

letters using the Document Upload Tool. For notices that require additional action, taxpayers 

will be redirected appropriately on IRS.gov to 

take further action. To learn more about the tool, 

go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 

1040), Request for Change in Language Preference, to state a preference to receive notices, 

letters, or other written communications from 

the IRS in an alternative language. You may not 

immediately receive written communications in 

the requested language. The IRS’s commitment 

to LEP taxpayers is part of a multi-year timeline 

that began providing translations in 2023. You 

will continue to receive communications, including notices and letters, in English until they are 

translated to your preferred language.

Contacting your local TAC. Keep in mind, 

many questions can be answered on IRS.gov 

without visiting a TAC. Go to IRS.gov/LetUsHelp 

for the topics people ask about most. If you still 

need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All 

TACs now provide service by appointment, so 

you’ll know in advance that you can get the 

service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find 

the nearest TAC and to check hours, available 

services, and appointment options. Or, on the 

IRS2Go app, under the Stay Connected tab, 

choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate 

Service (TAS) Is Here To 

Help You

What Is TAS?

TAS is an independent organization within the 

IRS that helps taxpayers and protects taxpayer 

rights. TAS strives to ensure that every taxpayer 

is treated fairly and that you know and understand your rights under the Taxpayer Bill of 

Rights.

How Can You Learn About Your 

Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic 

rights that all taxpayers have when dealing with 

the IRS. Go to TaxpayerAdvocate.IRS.gov to 

help you understand what these rights mean to 

you and how they apply. These are your rights. 

Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you 

can’t resolve with the IRS. And their service is 

free. If you qualify for their assistance, you will 

be assigned to one advocate who will work with 

you throughout the process and will do everything possible to resolve your issue. TAS can 

help you if:

• Your problem is causing financial difficulty 

for you, your family, or your business;

• You face (or your business is facing) an immediate threat of adverse action; or

• You’ve tried repeatedly to contact the IRS 

but no one has responded, or the IRS 

hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of 

Columbia, and Puerto Rico. To find your advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/ContactUs;

• Download Pub. 1546, The Taxpayer Advocate Service Is Your Voice at the IRS, available at IRS.gov/pub/irs-pdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 

1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How Else Does TAS Help 

Taxpayers?

TAS works to resolve large-scale problems that 

affect many taxpayers. If you know of one of 

these broad issues, report it to TAS at IRS.gov/

SAMS. Be sure to not include any personal taxpayer information.

Low Income Taxpayer Clinics 

(LITCs)

LITCs are independent from the IRS and TAS. 

LITCs represent individuals whose income is 

below a certain level and who need to resolve 

tax problems with the IRS. LITCs can represent 

taxpayers in audits, appeals, and tax collection 

disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a 

second language. Services are offered for free 

or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/LITC or see IRS 

Pub. 4134, Low Income Taxpayer Clinic List, at 

IRS.gov/pub/irs-pdf/p4134.pdf.

Page 16 Publication 517 (2023)
To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us. Index

A

Accountable plan 8

Additional Medicare Tax 2, 8

Administrators 9

American Samoa 4, 8

Assistance (See Tax help)

C

Cantors 10

Christian Science:

Practitioners 2, 4-6

Readers 2, 4, 5

Common-law employee 3

Commonwealth of the Northern 

Mariana Islands (CNMI) 4, 8

Credit:

Earned income 12

Retirement savings 

contributions 12

D

Deduction for self-employment 

tax 10

E

Earned income credit 12

Effective date:

Exemption from FICA taxes 7

Exemption from self-employment 

(SE) tax 6, 7

Employment status 3

Estimated tax 10

Exclusion, foreign earned 

income 10

Exemption

Form 4029 5, 7

Form 4361 5, 6

From FICA taxes 7

From self-employment (SE) 

tax 5-7

F

Federal Insurance Contributions 

Act (See FICA)

FICA:

Earnings covered 2

Effective date of exemption 7

Election to exclude church 

employees 4

Filing requirements for most 

taxpayers 11

Foreign earned income 10

Form:

1040 or 1040-SR 9-11

1040-ES 10

1040-X 6, 7

4029 5, 7, 11

4361 5, 6, 11

8959 2, 8

941 7

943 7

944 7

SS-8 4

G

Gross income:

Amounts included in 7

Amounts not included in 8

Guam 4, 8

H

Health insurance costs, 

deductibility 10

Home ownership, exclusion of 

allowance 9, 10

House or parsonage, fair rental 

value 9

I

Income tax

Estimated tax 10

Income and expenses 9-11

Withholding 10

Individual retirement 

arrangements (IRAs) 12

K

Keogh (H.R.10) plans 11

L

Lay employees (See Religious 

workers)

Living abroad 7, 10

M

Members of recognized religious 

sects 2, 6

Members of religious orders 2, 

4-6, 10

Ministerial services, exemption 

for

Christian Science practitioners 

and readers 5

Members of religious orders 5

Ministers 4

Ministers 2-4, 6, 9-11

Health insurance costs of 10

Retired 9

Missionary team, married 

couple 8

N

Nonaccountable plan 8

Nonfarm optional method 8

Nonresident aliens 4

O

Offerings and fees 7, 9

Overseas duty 7, 10

P

Parsonage allowance 7, 9, 10

Publications (See Tax help)

Puerto Rico 4, 8

Q

Qualified retirement plan 11

R

Refunds, self-employment tax 6, 

7

Reimbursements 8

Religious orders, members of 2, 

4-6, 10

Religious workers 2, 4

Rental allowance 7, 9, 10

Resident aliens 4

Retired ministers 9

Retirement savings 

arrangements 11

Retirement savings contributions 

credit 12

Royalty income from books 5

S

SECA 2, 3

Sects, members of recognized 

religious 2, 6

Self-Employment Contributions 

Act (See SECA)

Self-employment tax

Deduction 10

Exemption 5-7, 11

Maximum earnings 8

Nonfarm optional method 8

Refunds of 6, 7

Regular method 7

Self-employment, net earnings 

from 7-9

SIMPLE plan 11

Simplified employee pension 

(SEP) plan 11

Social security coverage 3

T

Tax help 14

Tax-free income, deductibility of 

expenses 10

Tax-sheltered annuity plans 12

Teachers 9

Theological students 10

Traveling evangelists 10

U

U.S. citizens 4

U.S. Virgin Islands 4, 8

V

Vow of poverty 2, 4, 5, 10

Publication 517 (2023) Page 17