In the second quarter edition of the Treasurer's Update, we included an article concerning a bill in Congress that contained a provision that would allow ministers the opportunity to revoke their previous exemption out of Social Security. We have just been notified that the bill has passed and the revocation is now available. Revocation can be made either for the tax year 2000 or the tax year 2001, but thereafter the opportunity will be gone.
Revocation is effective from the first day of the year for which filed.
Technically, the form could be filed by the due date of your tax return. Inability to revoke due to the financial hardship of paying the entire year's self-employment taxes at one time. It has been 13 years since the last opportunity to revoke the exemption, and there is no indication Congress will provide another such opportunity any time soon. If you have exempted out of Social Security, we encourage you to carefully consider this opportunity. This overview provides important details regarding this matter.