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Amended 1040 Ez

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Amended 1040 Ez

Amended 1040 ez Index A Acknowledgment of contributions, Acknowledgment of Charitable Contributions of $250 or More Adverse determination, Adverse determination. Amended 1040 ez Affordable Care Act Hospitals, What's New, New Requirements for section 501(c)(3) Hospitals Under the Affordable Care Act. Amended 1040 ez Aged, home for, Home for the aged. Amended 1040 ez Agricultural organization, Agricultural and Horticultural Organizations Airport, Other organizations. Amended 1040 ez Alumni association, Alumni association. Amended 1040 ez Amateur athletic organizations, Amateur Athletic Organizations Animals, prevention of cruelty to, Prevention of Cruelty to Children or Animals Appeal procedures, Appeal Procedures Application procedures, Application Procedures, Required Inclusions Bylaws, Bylaws. Amended 1040 ez Conformed copy, Conformed copy. Amended 1040 ez Description of activities, Description of activities. Amended 1040 ez Employer identification number, Required Inclusions Financial data, Financial data. Amended 1040 ez Organizing documents, Organizing documents. Amended 1040 ez Aquatic resources, Agricultural and Horticultural Organizations Articles of organization, Articles of Organization Assistance (see Tax help) Athletic organization, Athletic organization. Amended 1040 ez , Amateur Athletic Organizations Attorney's fees, Acceptance of attorneys' fees. Amended 1040 ez Attribution, special rules, Special rules of attribution. Amended 1040 ez B Black lung benefit trust, 501(c)(21) - Black Lung Benefit Trusts Board of trade, Board of trade. Amended 1040 ez Bureau defined, Bureau defined. Amended 1040 ez Burial benefit insurance, Burial and funeral benefit insurance organization. Amended 1040 ez Business income, unrelated, Unrelated Business Income Tax Return Business league, 501(c)(6) - Business Leagues, etc. Amended 1040 ez C Cemetery company, 501(c)(13) - Cemetery Companies Chamber of commerce, Chamber of commerce. Amended 1040 ez Change in legal structure, Organizational Changes and Exempt Status Charitable contributions, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Charitable organization, Section 501(c)(3) Organizations, Charitable Organizations Charitable risk pools, Charitable Risk Pools Child care organization, Child care organizations. Amended 1040 ez Children, prevention of cruelty to, Prevention of Cruelty to Children or Animals Church, Churches. Amended 1040 ez Integrated auxiliaries, Integrated auxiliaries. Amended 1040 ez Civic leagues, 501(c)(4) - Civic Leagues and Social Welfare Organizations Clinic, Clinic. Amended 1040 ez CO-OP Health Insurance Issuers, 501(c)(29) - CO-OP Health Insurance Issuers College bookstore, restaurant, College book stores, cafeterias, restaurants, etc. Amended 1040 ez Comments, Comments and suggestions. Amended 1040 ez Community association, Other organizations. Amended 1040 ez Community nursing bureau, Community nursing bureau. Amended 1040 ez Community trust, Community Trusts Contributions, charitable, Acknowledgment of Charitable Contributions of $250 or More, Contributions to 501(c)(3) Organizations Court appeals, Appeal to Courts Credit union, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations D Determination letter, Rulings and Determination Letters Disclosures, required, Disclosure of Quid Pro Quo Contributions Dues used for lobbying, Dues Used for Lobbying or Political Activities Nondeductible contributions, Solicitation of Nondeductible Contributions Quid pro quo contributions, Disclosure of Quid Pro Quo Contributions Services available from government, Penalties. Amended 1040 ez Dispositions of donated property, Donee Information Return Disqualified persons, Disqualified persons. Amended 1040 ez Domestic fraternal society, Domestic Fraternal Societies (501(c)(10)) Donor advised funds Excess benefit transaction, Donor advised fund transactions occurring after August 17, 2006. Amended 1040 ez Dues used for political or legislative activities, Dues Used for Lobbying or Political Activities, Deduction not allowed for dues used for political or legislative activities. Amended 1040 ez E Educational organizations, Educational Organizations, Educational organizations. Amended 1040 ez Employees' association, 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations Employment taxes, Employment Tax Returns Endowment fund, Endowment funds. Amended 1040 ez Estimated tax, Estimated tax. Amended 1040 ez Excess benefit transaction, Excess Benefit Transaction, Supporting organization transactions occurring after July 25, 2006. Amended 1040 ez Disqualified person, Tax on Disqualified Persons, Disqualified Person Controlled entity, 35%, 35% controlled entity. Amended 1040 ez Family members, Family members. Amended 1040 ez Substantial influence, Persons not considered to have substantial influence. Amended 1040 ez Disregarded benefits, Disregarded benefits. Amended 1040 ez Donor advised funds, Donor advised fund transactions occurring after August 17, 2006. Amended 1040 ez , Exception. Amended 1040 ez Excise tax, Excise tax on excess benefit transactions. Amended 1040 ez Initial contracts, Special Exception for Initial Contracts Reasonable compensation, Reasonable Compensation. Amended 1040 ez Rebuttable presumption, Rebuttable presumption that a transaction is not an excess benefit transaction. Amended 1040 ez Excise tax Black lung benefit trust, Excise taxes. Amended 1040 ez Lobbying expenditures, Tax on excess expenditures to influence legislation. Amended 1040 ez , Tax on disqualifying lobbying expenditures. Amended 1040 ez Political expenditures, Excise taxes on political expenditures. Amended 1040 ez Private foundations, Excise taxes on private foundations. Amended 1040 ez , Excise Taxes on Private Foundations Exempt function, Political Organization Income Tax Return Exempt purposes, Section 501(c)(3) Organizations Exemption for terrorist organization, Non-exemption for terrorist organizations. Amended 1040 ez Extensions of time, Extensions of time for filing. Amended 1040 ez F Facts and circumstances test, Facts and circumstances test. Amended 1040 ez Fair market value, estimate of, Good faith estimate of fair market value (FMV). Amended 1040 ez Filing requirements, Annual Information Returns Annual information returns, Annual Information Returns Donee information return, Donee Information Return Due date, Political Organization Income Tax Return Employment tax, Employment Tax Returns Excise tax, Excise taxes on private foundations. Amended 1040 ez , Excise Taxes on Private Foundations Political organization, Political Organization Income Tax Return Private foundations, Form 990-PF Unrelated business income, Unrelated Business Income Tax Return Form 990-N, Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Forms, Forms Required 1023, Forms Required, Administrative Remedies, 270-day period. Amended 1040 ez , Information required for subordinate organizations. Amended 1040 ez , Annual Information Return, Form 1023. Amended 1040 ez , Organizations Not Required To File Form 1023, Private Schools, When to file application. Amended 1040 ez , Lobbying Expenditures, Volunteer fire companies. Amended 1040 ez 1024, Forms Required, Application made under wrong paragraph of section 501(c). Amended 1040 ez , Annual Information Return, 501(c)(4) - Civic Leagues and Social Welfare Organizations, 501(c)(6) - Business Leagues, etc. Amended 1040 ez , 501(c)(7) - Social and Recreation Clubs, 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies, Fraternal Beneficiary Societies (501(c)(8)), Domestic Fraternal Societies (501(c)(10)), Local Employees' Associations (501(c)(4)), Voluntary Employees' Beneficiary Associations (501(c)(9)), Supplemental Unemployment Benefit Trusts (501(c)(17)), 501(c)(13) - Cemetery Companies, 501(c)(19) - Veterans' Organizations, 501(c)(20) - Group Legal Services Plan Organizations, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations, 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent Corporations 1040, Effect on employees. Amended 1040 ez 1065, Annual Information Returns 1120–POL, Political Organization Income Tax Return 1128, Central organizations. Amended 1040 ez 2848, Power of attorney. Amended 1040 ez , Representation. Amended 1040 ez 4720, Tax on excess expenditures to influence legislation. Amended 1040 ez 5578, Certification. Amended 1040 ez 5768, Making the election. Amended 1040 ez 6069, Tax treatment of donations. Amended 1040 ez 8274, FICA tax exemption election. Amended 1040 ez 8282, Dispositions of donated property. Amended 1040 ez 8283, Form 8283. Amended 1040 ez 8300, Report of Cash Received 8718, Forms Required, Power of attorney. Amended 1040 ez 8821, Representation. Amended 1040 ez 8871, Reporting Requirements for a Political Organization, Annual Information Return 8872, Reporting Requirements for a Political Organization, Annual Information Return 990, Keeping the Group Exemption Letter in Force, Forms 990 and 990-EZ, Annual Information Return, Making the election. Amended 1040 ez 990-BL, Annual Information Returns, 990-EZ, Forms 990 and 990-EZ, Form 990-EZ. Amended 1040 ez 990-PF, Form 990-PF, Excise taxes on private foundations. Amended 1040 ez , Excise Taxes on Private Foundations 990-T, Unrelated Business Income Tax Return SS-4, Required Inclusions, Employer identification number. Amended 1040 ez W–2, Revoking the election. Amended 1040 ez Fraternal beneficiary society, Fraternal Beneficiary Societies (501(c)(8)) Fraternal societies, Organizations subject to requirements. Amended 1040 ez , 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies Free tax services, Free help with your tax return. Amended 1040 ez Funeral benefit insurance, Burial and funeral benefit insurance organization. Amended 1040 ez G Gifts and contributions, public charity, Gifts, contributions, and grants distinguished from gross receipts. Amended 1040 ez Good faith determinations, What's New, New organization. Amended 1040 ez Governmental unit, Governmental units. Amended 1040 ez Grant Distinguished from gross receipts, Grants. Amended 1040 ez Exclusion for unusual grant, Unusual grants. Amended 1040 ez , Unusual grants. Amended 1040 ez From public charity, Grants from public charities. Amended 1040 ez , Grants from public charities. Amended 1040 ez Grantor and contributor, reliance on ruling, Reliance by grantors and contributors. Amended 1040 ez Gross receipts from nonmembership sources, Gross receipts from nonmembership sources. Amended 1040 ez Group exemption letter, Group Exemption Letter H Health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Help (see Tax help) High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Home for the aged, Home for the aged. Amended 1040 ez Homeowners' association, Homeowners' associations. Amended 1040 ez Horticultural organization, Agricultural and Horticultural Organizations Hospital, Hospital. Amended 1040 ez , Hospitals and medical research organizations. Amended 1040 ez I Inactive organization, Organizational Changes and Exempt Status Industrial development, Other organizations. Amended 1040 ez Instrumentalities, Instrumentalities. Amended 1040 ez Insurance, organizations providing, Organizations Providing Insurance L Labor organization, Organizations subject to requirements. Amended 1040 ez , Labor Organizations Law, public interest, Public-interest law firms. Amended 1040 ez Legislative activity, Lobbying Expenditures, Legislative activity. Amended 1040 ez Listed transaction, Prohibited tax shelter transaction. Amended 1040 ez Literary organizations, Literary Organizations Loans, organizations providing, Organization providing loans. Amended 1040 ez Lobbying expenditures, Lobbying Expenditures Local benevolent life insurance associations, Local Life Insurance Associations Local employees' association, Local Employees' Associations (501(c)(4)) Lodge system, Lodge system. Amended 1040 ez M Medical research organization, Medical research organization. Amended 1040 ez Medicare and Medicaid payments, Medicare and Medicaid payments. Amended 1040 ez Membership fee, Membership fees. Amended 1040 ez , Membership fees distinguished from gross receipts. Amended 1040 ez Modification of exemption, Revocation or Modification of Exemption Mutual financial organization, 501(c)(14) - Credit Unions and Other Mutual Financial Organizations Mutual or cooperative association, Mutual or Cooperative Associations N Nursing bureau, Community nursing bureau. Amended 1040 ez O One-third support test, One-third support test. Amended 1040 ez Organization assets, Dedication and Distribution of Assets Dedication, Dedication. Amended 1040 ez Distribution, Distribution. Amended 1040 ez Organizational changes, Organizational Changes and Exempt Status P Penalties, Penalties for failure to file. Amended 1040 ez Failure to allow public inspection, Penalties Failure to disclose, Penalty for failure to disclose. Amended 1040 ez , Penalties. Amended 1040 ez , Penalty. Amended 1040 ez Failure to file, Penalties for failure to file. Amended 1040 ez Perpetual care organization, Perpetual care organization. Amended 1040 ez Political activity, Dues Used for Lobbying or Political Activities, Political activity. Amended 1040 ez , Political activity. Amended 1040 ez Political organization Income tax return, Political Organization Income Tax Return Taxable income, Political Organization Income Tax Return Power of attorney, Power of attorney. Amended 1040 ez Preferred stock, Common and preferred stock. Amended 1040 ez Prevention of cruelty to children or animals, Prevention of Cruelty to Children or Animals Private delivery service, Private delivery service. Amended 1040 ez Private foundations, Private Foundations Private operating foundation, Private Operating Foundations Private school, Private Schools, Racially Nondiscriminatory Policy Prohibited tax shelter transactions Entity managers, Entity manager. Amended 1040 ez Entity managers excise tax, Manager Level Tax Listed transaction, Prohibited tax shelter transaction. Amended 1040 ez Prohibited reportable transactions, Prohibited tax shelter transaction. Amended 1040 ez Subsequently listed transaction, Subsequently listed transaction. Amended 1040 ez Tax-exempt entities, Tax-exempt entities. Amended 1040 ez Public charity Gifts and contributions, Gifts, contributions, and grants distinguished from gross receipts. Amended 1040 ez Grant from, Grants from public charities. Amended 1040 ez Section 509(a)(1), Section 509(a)(1) Organizations Section 509(a)(2), Section 509(a)(2) Organizations Section 509(a)(3), Section 509(a)(3) Organizations Section 509(a)(4), Section 509(a)(4) Organizations Support test, One-third support test. Amended 1040 ez , One-third support test. Amended 1040 ez Public inspection Annual return, Annual Information Return Exemption applications, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Forms 8871 and 8872, Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Public-interest law firm, Public-interest law firms. Amended 1040 ez Publications (see Tax help) Publicly supported organization, Publicly supported organizations. Amended 1040 ez , Qualifying as Publicly Supported Attraction of public support, Attraction of public support requirement. Amended 1040 ez Ten-percent-of-support, Ten-percent-of-support requirement. Amended 1040 ez R Racial composition, How to determine racial composition. Amended 1040 ez Racially nondiscriminatory policy, Racially Nondiscriminatory Policy Real estate board, Real estate board. Amended 1040 ez Recognition of exemption, application, Application for Recognition of Exemption Religious organizations, Religious Organizations Requests other than applications, Miscellaneous Procedures Responsiveness test, Responsiveness test. Amended 1040 ez Revocation of exemption, Revocation or Modification of Exemption Ruling letter, Rulings and Determination Letters S Scholarship Private school, Scholarship and loan programs. Amended 1040 ez Scholarships, Scholarships. Amended 1040 ez School, private, Private Schools Scientific organizations, Scientific Organizations Section 501(c)(3) organizations Amateur athletic, Amateur Athletic Organizations Literary, Literary Organizations Prevention of cruelty, Prevention of Cruelty to Children or Animals Private foundations, Private Foundations and Public Charities Public charities, Public Charities Qualifications, Section 501(c)(3) Organizations Religious, Religious Organizations Scientific, Scientific Organizations Section 501(c)(3) Organizations Charitable, Charitable Organizations Educational, Educational Organizations and Private Schools Single entity, Single entity. Amended 1040 ez Social clubs, Organizations subject to requirements. Amended 1040 ez , 501(c)(7) - Social and Recreation Clubs Social welfare organization, Organizations subject to requirements. Amended 1040 ez , 501(c)(4) - Civic Leagues and Social Welfare Organizations Specified organizations, Specified organizations. Amended 1040 ez Sports organization, amateur, Qualified amateur sports organization. Amended 1040 ez State-sponsored, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations High-risk health coverage organization, 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations Workers' compensation reinsurance organization, 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations Stock or commodity exchange, Stock or commodity exchange. Amended 1040 ez Suggestions, Comments and suggestions. Amended 1040 ez Supplemental unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Support, Support. Amended 1040 ez , Support from a governmental unit. Amended 1040 ez , Support from the general public. Amended 1040 ez Support test, One-third support test. Amended 1040 ez Facts and circumstances, Facts and circumstances test. Amended 1040 ez One-third, One-third support test. Amended 1040 ez Public charity, One-third support test. Amended 1040 ez Supporting organization, Supporting organization transactions occurring after July 25, 2006. Amended 1040 ez T Tax help, Technical advice, Appeals Office Consideration Testing for public safety, Section 509(a)(4) Organizations Title-holding corporation, 501(c)(2) - Title-Holding Corporations for Single Parent Corporations U Unemployment benefit trust, Supplemental Unemployment Benefit Trusts (501(c)(17)) Unrelated business income, Unrelated Business Income Tax Return Unusual grants, Unusual grants. Amended 1040 ez , Unusual grants. Amended 1040 ez User fee, Power of attorney. Amended 1040 ez , User fee. Amended 1040 ez V Veterans' organization, 501(c)(19) - Veterans' Organizations Voluntary employees' beneficiary association, Voluntary Employees' Beneficiary Associations (501(c)(9)) Volunteer fire company, Volunteer fire companies. Amended 1040 ez W War veterans' organization, 501(c)(19) - Veterans' Organizations Withdrawal of application, Withdrawal of application. Amended 1040 ez Withholding information from public, Requests for withholding of information from the public. Amended 1040 ez Work Opportunity Tax Credit, Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. Amended 1040 ez Workers' compensation reinsurance organization, 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations Prev  Up     Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Mississippi Department of Agriculture and Commerce

Website: Mississippi Department of Agriculture and Commerce

Address: Mississippi Department of Agriculture and Commerce
Bureau of Regulatory Services Consumer Protection
PO Box 1609
Jackson, MS 39215

Phone Number: 601-359-1148

Mississippi Office of the Attorney General

Website: Mississippi Office of the Attorney General

Address: Mississippi Office of the Attorney General
Consumer Protection Division
PO Box 22947
Jackson, MS 39225-2947

Phone Number: 601-359-4230

Toll-free: 1-800-281-4418 (MS)

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking and Consumer Finance

Website: Department of Banking and Consumer Finance

Address: Department of Banking and Consumer Finance
901 Woolfolk Building, Suite A
501 N. West St.
Jackson, MS 39201

Phone Number: 601-359-1031

Toll-free: 1-800-844-2499 (MS)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
PO Box 79
Jackson, MS 39205-0079

Phone Number: 601-359-3569

Toll-free: 1-800-562-2957 (MS)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Secretary of State

Website: Secretary of State

Address: Secretary of State
Securities Division
PO Box 136
Jackson, MS 39205-0136

Phone Number: 601-359-1334

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
P.O. Box 1174
Jackson, MS 39215

Phone Number: 601-961-5430 (Central District) 601-961-5440 (Southern District) 601-961-5450 (Northern District)

Toll-free: 1-800-356-6429 (Southern District) 1-800-356-6430 (Central District) 1-800-356-6428 (Northern District)

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The Amended 1040 Ez

Amended 1040 ez Publication 517 - Main Content Table of Contents Social Security CoverageCoverage of Members of the Clergy Coverage of Religious Workers (Church Employees) U. Amended 1040 ez S. Amended 1040 ez Citizens and Resident and Nonresident Aliens Ministerial ServicesMinisters Members of Religious Orders Christian Science Practitioners and Readers Exemption From Self-Employment (SE) TaxMembers of the Clergy Members of Recognized Religious Sects Self-Employment Tax: Figuring Net EarningsRegular Method Nonfarm Optional Method Income Tax: Income and ExpensesIncome Items Expense Items Income Tax Withholding and Estimated Tax Filing Your Return Retirement Savings ArrangementsDeducting contributions to tax-sheltered annuity plans. Amended 1040 ez Full-time student. Amended 1040 ez Adjusted gross income. Amended 1040 ez More information. Amended 1040 ez Earned Income Credit Comprehensive ExampleForm W-2 From Church Form W-2 From College Schedule C-EZ (Form 1040) Form 2106-EZ Schedule A (Form 1040) Schedule SE (Form 1040) Form 1040 Attachment 1 Attachment 2 How To Get Tax HelpLow Income Taxpayer Clinics 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). Amended 1040 ez 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. Amended 1040 ez Your earnings for these ministerial services (defined later) are subject to self-employment (SE) tax unless one of the following applies. Amended 1040 ez You are a member of a religious order who has taken a vow of poverty. Amended 1040 ez You ask the Internal Revenue Service (IRS) for an exemption from SE tax for your services and the IRS approves your request. Amended 1040 ez See Exemption From Self-Employment (SE) Tax , later. Amended 1040 ez 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. Amended 1040 ez For more information, see Bilateral Social Security (Totalization) Agreements in Publication 54. Amended 1040 ez Your earnings that are not from ministerial services may be subject to social security tax under FICA or SECA according to the rules that apply to taxpayers in general. Amended 1040 ez See Ministerial Services , later. Amended 1040 ez 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. Amended 1040 ez However, you can request that the IRS grant you an exemption, as discussed under Exemption From Self-Employment (SE) Tax , later. Amended 1040 ez For the specific services covered, see Ministerial Services , later. Amended 1040 ez Ministers defined. Amended 1040 ez   Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. Amended 1040 ez 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. Amended 1040 ez   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. Amended 1040 ez Employment status for other tax purposes. Amended 1040 ez   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. Amended 1040 ez For income tax or retirement plan purposes, your income earned as an employee will be considered wages. Amended 1040 ez Common-law employee. Amended 1040 ez   Under common-law rules, you are considered either an employee or a self-employed person. Amended 1040 ez 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. Amended 1040 ez For more information about the common-law rules, see Publication 15-A, Employer's Supplemental Tax Guide. Amended 1040 ez   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. Amended 1040 ez However, amounts received directly from members of the congregation, such as fees for performing marriages, baptisms, or other personal services, are not wages; such amounts are self-employment income for both income tax purposes and social security tax purposes. Amended 1040 ez Example. Amended 1040 ez A church hires and pays you a salary to perform ministerial services subject to its control. Amended 1040 ez Under the common-law rules, you are an employee of the church while performing those services. Amended 1040 ez Form SS-8. Amended 1040 ez   If you are not certain whether you are an employee or a self-employed person, you can get a determination from the IRS by filing Form SS-8. Amended 1040 ez Members of Religious Orders If you are a member of a religious order who has not taken a vow of poverty, your earnings for ministerial services you perform as a member of the order are subject to SE tax. Amended 1040 ez See Ministerial Services , later. Amended 1040 ez However, you can request that the IRS grant you an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Amended 1040 ez Vow of poverty. Amended 1040 ez   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. Amended 1040 ez You do not need to request a separate exemption. Amended 1040 ez For income tax purposes, the earnings are tax free to you. Amended 1040 ez Your earnings are considered the income of the religious order. Amended 1040 ez Services covered under FICA at the election of the order. Amended 1040 ez   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. Amended 1040 ez 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. Amended 1040 ez   The order or subdivision elects coverage by filing Form SS-16. Amended 1040 ez 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. Amended 1040 ez If the election is made, the order or subdivision pays both the employer's and employee's share of the tax. Amended 1040 ez You do not pay any of the FICA tax. Amended 1040 ez Services performed outside the order. Amended 1040 ez   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. Amended 1040 ez   In these cases, your income from self-employment or as an employee of that outside organization is taxable to you directly. Amended 1040 ez You may, however, be able to take a charitable deduction for the amount you turn over to the order. Amended 1040 ez See Publication 526, Charitable Contributions. Amended 1040 ez Rulings. Amended 1040 ez   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. Amended 1040 ez To request a ruling, follow the procedures in Revenue Procedure 2014-1, 2014-1 I. Amended 1040 ez R. Amended 1040 ez B. Amended 1040 ez 1, available at www. Amended 1040 ez irs. Amended 1040 ez gov/irb/2014-1_IRB/ar05. Amended 1040 ez html. Amended 1040 ez 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. Amended 1040 ez However, you can request an exemption as discussed under Exemption From Self-Employment (SE) Tax , later. Amended 1040 ez Practitioners. Amended 1040 ez   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. Amended 1040 ez State law specifically exempts Christian Science practitioners from licensing requirements. Amended 1040 ez   Some Christian Science practitioners also are Christian Science teachers or lecturers. Amended 1040 ez Income from teaching or lecturing is considered the same as income from their work as practitioners. Amended 1040 ez Readers. Amended 1040 ez   For tax purposes, Christian Science readers are considered the same as ordained, commissioned, or licensed ministers. Amended 1040 ez Coverage of Religious Workers (Church Employees) If you are a religious worker (a church employee) and are not in one of the classes already discussed, your wages are generally subject to social security and Medicare tax under FICA, not SECA. Amended 1040 ez Some exceptions are discussed next. Amended 1040 ez 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 can elect to exclude their employees from FICA coverage. Amended 1040 ez If your employer makes this election, it does not pay the employer's portion of the FICA taxes or withhold from your pay your portion of the FICA taxes. Amended 1040 ez Instead, your wages are subject to SECA and you must pay SE tax on your wages if they exceed $108. Amended 1040 ez 28 during the tax year. Amended 1040 ez However, you can request an exemption from SE tax if you are a member of a recognized religious sect, as discussed below. Amended 1040 ez Churches and church organizations make this election by filing two copies of Form 8274. Amended 1040 ez For more information about making this election, see Form 8274. Amended 1040 ez 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 does not pay the employer's part of the social security tax on wages. Amended 1040 ez This exemption does not apply to your service, if any, as a minister of a church or as a member of a religious order. Amended 1040 ez Make this choice by filing Form 4029. Amended 1040 ez See Requesting Exemption—Form 4029 , later, under Members of Recognized Religious Sects. Amended 1040 ez U. Amended 1040 ez S. Amended 1040 ez Citizens and Resident and Nonresident Aliens To be covered under the SE tax provisions (SECA), individuals generally must be citizens or resident aliens of the United States. Amended 1040 ez Nonresident aliens are not covered under SECA unless a social security agreement in effect between the United States and the foreign country determines that you are covered under the U. Amended 1040 ez S. Amended 1040 ez social security system. Amended 1040 ez To determine your alien status, see Publication 519, U. Amended 1040 ez S. Amended 1040 ez Tax Guide for Aliens. Amended 1040 ez Residents of Puerto Rico, the U. Amended 1040 ez S. Amended 1040 ez Virgin Islands, Guam, the CNMI, and American Samoa. Amended 1040 ez   If you are a resident of one of these U. Amended 1040 ez S. Amended 1040 ez possessions but not a U. Amended 1040 ez S. Amended 1040 ez citizen, for SE tax purposes you are treated the same as a citizen or resident alien of the United States. Amended 1040 ez For information on figuring the tax, see Self-Employment Tax: Figuring Net Earnings , later. Amended 1040 ez 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. Amended 1040 ez Income you receive for performing ministerial services is subject to SE tax unless you have an exemption as explained later. Amended 1040 ez Even if you have an exemption, only the income you receive for performing ministerial services is exempt. Amended 1040 ez The exemption does not apply to any other income. Amended 1040 ez The following discussions provide more detailed information on ministerial services of ministers, members of a religious order, and Christian Science practitioners and readers. Amended 1040 ez Ministers Most services you perform as a minister, priest, rabbi, etc. Amended 1040 ez , are ministerial services. Amended 1040 ez These services include: Performing sacerdotal functions, 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. Amended 1040 ez You are considered to control, conduct, and maintain a religious organization if you direct, manage, or promote the organization's activities. Amended 1040 ez A religious organization is under the authority of a religious body that is a church or denomination if it is organized for and dedicated to carrying out the principles of a faith according to the requirements governing the creation of institutions of the faith. Amended 1040 ez Services for nonreligious organizations. Amended 1040 ez   Your services for a nonreligious organization are ministerial services if the services are assigned or designated by your church. Amended 1040 ez Assigned or designated services qualify even if they do not involve performing sacerdotal functions or conducting religious worship. Amended 1040 ez   If your services are not assigned or designated by your church, they are ministerial services only if they involve performing sacerdotal functions or conducting religious worship. Amended 1040 ez Services that are not part of your ministry. Amended 1040 ez   Income from services you perform as an employee that are not ministerial services is subject to social security and Medicare tax withholding under FICA (not SECA) under the rules that apply to employees in general. Amended 1040 ez The following are not ministerial services. Amended 1040 ez Services you perform for nonreligious organizations other than the services stated above. Amended 1040 ez 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. Amended 1040 ez These services are not ministerial services even if you are performing sacerdotal functions or conducting religious worship. Amended 1040 ez (For example, if you perform services as a chaplain in the Armed Forces of the United States, those services are not ministerial services. Amended 1040 ez ) Services you perform in a government-owned and operated hospital. Amended 1040 ez (These services are considered performed by a government employee, not by a minister as part of the ministry. Amended 1040 ez ) 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. Amended 1040 ez Books or articles. Amended 1040 ez   Writing religious books or articles is considered to be in the exercise of your ministry and is considered a ministerial service. Amended 1040 ez   This rule also applies to members of religious orders and to Christian Science practitioners and readers. Amended 1040 ez 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. Amended 1040 ez The services are considered ministerial because you perform them as an agent of the order. Amended 1040 ez 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. Amended 1040 ez However, if the order directs you to work outside the order, this employment will not 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. Amended 1040 ez Effect of employee status. Amended 1040 ez   Ordinarily, if your services are not considered directed or required of you by the order, you and the outside party for whom you work are considered employee and employer. Amended 1040 ez 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 provided as agent for the order. Amended 1040 ez This result is true even if you have taken a vow of poverty. Amended 1040 ez Example. Amended 1040 ez Pat Brown and Chris Green are members of a religious order and have taken vows of poverty. Amended 1040 ez They renounce all claims to their earnings. Amended 1040 ez The earnings belong to the order. Amended 1040 ez Pat is a licensed attorney. Amended 1040 ez The superiors of the order instructed her to get a job with a law firm. Amended 1040 ez Pat joined a law firm as an employee and, as she requested, the firm made the salary payments directly to the order. Amended 1040 ez Chris is a secretary. Amended 1040 ez The superiors of the order instructed him to accept a job with the business office of the church that supervises the order. Amended 1040 ez Chris took the job and gave all his earnings to the order. Amended 1040 ez Pat's services are not duties required by the order. Amended 1040 ez Her earnings are subject to social security and Medicare tax under FICA and to federal income tax. Amended 1040 ez Chris' services are duties required by the order. Amended 1040 ez He is acting as an agent of the order and not as an employee of a third party. Amended 1040 ez He does not include the earnings in gross income, and they are not subject to income tax withholding or to social security and Medicare tax under FICA or SECA. Amended 1040 ez Christian Science Practitioners and Readers Services you perform as a Christian Science practitioner or reader in the exercise of your profession are ministerial services. Amended 1040 ez Amounts you receive for performing these services are generally subject to SE tax. Amended 1040 ez You may request an exemption from SE tax, discussed next, which applies only to those services. Amended 1040 ez 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. Amended 1040 ez 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. Amended 1040 ez They do not have to request the exemption. Amended 1040 ez Who cannot be exempt. Amended 1040 ez   You cannot be exempt from SE tax if you made one of the following elections to be covered under social security. Amended 1040 ez These elections are irrevocable. Amended 1040 ez You elected to be covered under social security by filing Form 2031, Revocation of Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners, for your 1986, 1987, 2000, or 2001 tax year. Amended 1040 ez You elected before 1968 to be covered under social security for your ministerial services. Amended 1040 ez Requesting exemption. Amended 1040 ez    Table 2, earlier, briefly summarizes the procedure for requesting exemption from the SE tax. Amended 1040 ez More detailed explanations follow. Amended 1040 ez 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. Amended 1040 ez It does not apply to any other self-employment income. Amended 1040 ez Table 2. Amended 1040 ez 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 (at least part 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 For all tax years beginning with the first year you meet the eligibility requirements discussed later Members of the Clergy To claim the exemption from SE tax, you must meet all of the following conditions. Amended 1040 ez You file Form 4361, described below under Requesting Exemption—Form 4361 . Amended 1040 ez 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. Amended 1040 ez You file for other than economic reasons. Amended 1040 ez 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). Amended 1040 ez This requirement does not apply to Christian Science practitioners or readers. Amended 1040 ez You establish that the organization that ordained, commissioned, or licensed you, or your religious order, is a tax-exempt religious organization. Amended 1040 ez You establish that the organization is a church or a convention or association of churches. Amended 1040 ez You did not make an election discussed earlier under Who cannot be exempt . Amended 1040 ez 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. Amended 1040 ez Requesting Exemption—Form 4361 To request exemption from SE tax, file Form 4361 in triplicate (original and two copies) with the IRS. Amended 1040 ez The IRS will return to you a copy of the Form 4361 that you filed indicating whether it has approved your exemption. Amended 1040 ez If it is approved, keep the approved copy of Form 4361 in your permanent records. Amended 1040 ez When to file. Amended 1040 ez   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. Amended 1040 ez You have net earnings from self-employment of at least $400. Amended 1040 ez Any part of those net earnings was from ministerial services you performed as a: Minister, Member of a religious order, or Christian Science practitioner or reader. Amended 1040 ez The 2 years do not have to be consecutive tax years. Amended 1040 ez    The approval process can take some time, so you should file Form 4361 as soon as possible. Amended 1040 ez Example 1. Amended 1040 ez Rev. Amended 1040 ez Lawrence Jaeger, a clergyman ordained in 2013, has net self-employment earnings as a minister of $450 in 2013 and $500 in 2014. Amended 1040 ez He must file his application for exemption by the due date, including extensions, for his 2014 income tax return. Amended 1040 ez However, if Rev. Amended 1040 ez Jaeger does not receive IRS approval for an exemption by April 15, 2015, his SE tax for 2014 is due by that date. Amended 1040 ez Example 2. Amended 1040 ez Rev. Amended 1040 ez Louise Wolfe has only $300 in net self-employment earnings as a minister in 2013, but earned more than $400 in 2012 and expects to earn more than $400 in 2014. Amended 1040 ez She must file her application for exemption by the due date, including extensions, for her 2014 income tax return. Amended 1040 ez However, if she does not receive IRS approval for an exemption by April 15, 2015, her SE tax for 2014 is due by that date. Amended 1040 ez Example 3. Amended 1040 ez In 2011, Rev. Amended 1040 ez David Moss was ordained a minister and had $700 in net self-employment earnings as a minister. Amended 1040 ez In 2012, he received $1,000 as a minister, but his related expenses were over $1,000. Amended 1040 ez Therefore, he had no net self-employment earnings as a minister in 2012. Amended 1040 ez Also in 2012, he opened a book store and had $8,000 in net self-employment earnings from the store. Amended 1040 ez In 2013, he had net self-employment earnings of $1,500 as a minister and $10,000 net self-employment earnings from the store. Amended 1040 ez Rev. Amended 1040 ez Moss had net earnings from self-employment in 2011 and 2013 that were $400 or more each year, and part of the self-employment earnings in each of those years was for his services as a minister. Amended 1040 ez Thus, he must file his application for exemption by the due date, including extensions, for his 2013 income tax return. Amended 1040 ez Death of individual. Amended 1040 ez   The right to file an application for exemption ends with an individual's death. Amended 1040 ez A surviving spouse, executor, or administrator cannot file an exemption application for a deceased clergy member. Amended 1040 ez Effective date of exemption. Amended 1040 ez   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 clergy. Amended 1040 ez Once the exemption is approved, it is irrevocable. Amended 1040 ez Example. Amended 1040 ez Rev. Amended 1040 ez Trudy Austin, ordained in 2010, had $400 or more in net self-employment earnings as a minister in both 2010 and 2013. Amended 1040 ez She files an application for exemption on February 20, 2014. Amended 1040 ez If an exemption is granted, it is effective for 2010 and the following years. Amended 1040 ez Refunds of SE tax. Amended 1040 ez   If, after receiving an approved Form 4361, you find that you overpaid SE tax, you can file a claim for refund on Form 1040X. Amended 1040 ez Generally, for a refund, you must file Form 1040X within 3 years from the date you filed the return or within 2 years from the date you paid the tax, whichever is later. Amended 1040 ez A return you filed, or tax you paid, before the due date is considered to have been filed or paid on the due date. Amended 1040 ez   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 will not be more than the tax you paid within the 2 years immediately before you file the claim. Amended 1040 ez 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. Amended 1040 ez Exception. Amended 1040 ez   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 cannot apply. Amended 1040 ez However, if you pay your benefits back, you may be considered for exemption. Amended 1040 ez Contact your local Social Security Administration office to find out the amount you must pay back. Amended 1040 ez Eligibility requirements. Amended 1040 ez   To claim this exemption from SE tax, all the following requirements must be met. Amended 1040 ez You must file Form 4029, discussed later under Requesting Exemption—Form 4029 . Amended 1040 ez 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. Amended 1040 ez 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. Amended 1040 ez The Commissioner of Social Security must determine that: Your sect or division has the established teachings as described in (2) above, 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 The sect or division has existed at all times since December 31, 1950. Amended 1040 ez Requesting Exemption—Form 4029 To request the exemption, file Form 4029 in triplicate (original and two copies) with the Social Security Administration at the address shown on the form. Amended 1040 ez The sect or division must complete part of the form. Amended 1040 ez The IRS will return to you a copy of the Form 4029 that you filed indicating whether it has approved your exemption. Amended 1040 ez If it is approved, keep the approved copy of Form 4029 in your permanent records. Amended 1040 ez When to file. Amended 1040 ez   You can file Form 4029 at any time. Amended 1040 ez   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. Amended 1040 ez See Effective date of exemption next for information on when the newly approved exemption would become effective. Amended 1040 ez    If you have a previously approved exemption from SE tax and you change membership to another recognized religious sect, without any change to your eligibility requirements, then you do not need to file a new Form 4029. Amended 1040 ez Effective date of exemption. Amended 1040 ez   An approved exemption from SE tax generally is effective for all tax years beginning with the first year you meet the eligibility requirements discussed earlier. Amended 1040 ez (For example, if you meet the eligibility requirements in 2011, you file Form 4029 in 2012, and the IRS approves your exemption in 2013, your exemption is effective for tax year 2011 and all later years. Amended 1040 ez )   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. Amended 1040 ez 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. Amended 1040 ez The exemption will end for the tax year where you or your sect/division first fails to meet the eligibility requirements. Amended 1040 ez Refunds of SE tax paid. Amended 1040 ez    To get a refund of any SE tax you paid while the exemption was in effect, file Form 1040X. Amended 1040 ez For information on filing this form, see Refunds of SE tax under Requesting Exemption—Form 4361, earlier. Amended 1040 ez Exemption From FICA Taxes Generally, under FICA, the employer and the employee each pay half of the social security and Medicare tax. Amended 1040 ez Both the employee and the employer, if they meet the eligibility requirements discussed earlier, can apply to be exempt from their share of FICA taxes on wages paid by the employer to the employee. Amended 1040 ez A partnership in which each partner holds a religious exemption from social security and Medicare is an employer for this purpose. Amended 1040 ez 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. Amended 1040 ez Information for employers. Amended 1040 ez   If you have an approved Form 4029 and you have an employee who has an approved Form 4029, do not report wages you paid to the employee as social security and Medicare wages. Amended 1040 ez   If you have an employee who does not have an approved Form 4029, you must withhold the employee's share of social security and Medicare taxes and pay the employer's share. Amended 1040 ez Form W-2. Amended 1040 ez   When preparing a Form W-2 for an employee with an approved Form 4029, enter “Form 4029” in box 14, “Other. Amended 1040 ez ” Do not make any entries in boxes 3, 4, 5, or 6. Amended 1040 ez Forms 941, 943, and 944. Amended 1040 ez   If both you and your employee have received approved Forms 4029, do not include these exempt wages on the following forms. Amended 1040 ez Instead, follow the instructions given below. Amended 1040 ez Form 941, Employer's QUARTERLY Federal Tax Return: check the box on line 4 and enter “Form 4029” in the empty space below the check box. Amended 1040 ez 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. Amended 1040 ez Form 944, Employer's ANNUAL Federal Tax Return: check the box on line 3 and enter “Form 4029” in the empty space below the check box. Amended 1040 ez Effective date. Amended 1040 ez   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. Amended 1040 ez 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. Amended 1040 ez 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. Amended 1040 ez Regular method. Amended 1040 ez Nonfarm optional method. Amended 1040 ez You may find Worksheets 1 through 4 helpful in figuring your net earnings from self-employment. Amended 1040 ez Blank worksheets are in the back of this publication, after the Comprehensive Example. Amended 1040 ez Regular Method Most people use the regular method. Amended 1040 ez 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 has not taken a vow of poverty, or a Christian Science practitioner or reader. Amended 1040 ez Then, subtract your allowable business deductions and multiply the difference by 92. Amended 1040 ez 35% (. Amended 1040 ez 9235). Amended 1040 ez Use Schedule SE (Form 1040) to figure your net earnings and SE tax. Amended 1040 ez 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. Amended 1040 ez 35% (. Amended 1040 ez 9235). Amended 1040 ez Do not reduce your wages by any business deductions when making this computation. Amended 1040 ez Use Schedule SE (Form 1040), Section B, to figure your net earnings and SE tax. Amended 1040 ez If you have an approved exemption, or you are automatically exempt, do not include the income or deductions from ministerial services in figuring your net earnings from self-employment. Amended 1040 ez Amounts included in gross income. Amended 1040 ez   To figure your net earnings from self-employment (on Schedule SE (Form 1040)), include in gross income: Salaries and fees for your ministerial services (discussed earlier), Offerings you receive for marriages, baptisms, funerals, masses, etc. Amended 1040 ez , The value of meals and lodging provided to you, your spouse, and your dependents for your employer's convenience, 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 Any amount a church pays toward your income tax or SE tax, other than withholding the amount from your salary. Amended 1040 ez This amount is also subject to income tax. Amended 1040 ez   For the income tax treatment of items (2) and (4), see Income Tax: Income and Expenses , later. Amended 1040 ez Example. Amended 1040 ez Pastor Roger Adams receives an annual salary of $39,000 as a full-time minister. Amended 1040 ez The $39,000 includes $5,000 that is designated as a rental allowance to pay utilities. Amended 1040 ez His church owns a parsonage that has a fair rental value of $12,000 per year. Amended 1040 ez The church gives Pastor Adams the use of the parsonage. Amended 1040 ez He is not exempt from SE tax. Amended 1040 ez He must include $51,000 ($39,000 plus $12,000) when figuring his net earnings for SE tax purposes. Amended 1040 ez 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. Amended 1040 ez Overseas duty. Amended 1040 ez   Your net earnings from self-employment are determined without any foreign earned income exclusion or the foreign housing exclusion or deduction if you are a U. Amended 1040 ez S. Amended 1040 ez citizen or resident alien serving abroad and living in a foreign country. Amended 1040 ez   For information on excluding foreign earned income or the foreign housing amount, see Publication 54. Amended 1040 ez Example. Amended 1040 ez Diane Jones was the minister of a U. Amended 1040 ez S. Amended 1040 ez church in Mexico. Amended 1040 ez She earned $35,000 in that position and was able to exclude it all for income tax purposes under the foreign earned income exclusion. Amended 1040 ez The United States does not have a social security agreement with Mexico, so Mrs. Amended 1040 ez Jones is subject to U. Amended 1040 ez S. Amended 1040 ez SE tax and must include $35,000 when figuring net earnings from self-employment. Amended 1040 ez Specified U. Amended 1040 ez S. Amended 1040 ez possessions. Amended 1040 ez    The exclusion from gross income for amounts derived from American Samoa or Puerto Rico does not apply in computing net earnings from self-employment. Amended 1040 ez Also see Residents of Puerto Rico, the U. Amended 1040 ez S. Amended 1040 ez Virgin Islands, Guam, the CNMI, and American Samoa , earlier, under U. Amended 1040 ez S. Amended 1040 ez Citizens and Resident and Nonresident Aliens. Amended 1040 ez Amounts not included in gross income. Amended 1040 ez   Do not include the following amounts in gross income when figuring your net earnings from self-employment. Amended 1040 ez Offerings that others made to the church. Amended 1040 ez Contributions by your church to a tax-sheltered annuity plan set up for you, including any salary reduction contributions (elective deferrals) that are not included in your gross income. Amended 1040 ez Pension payments or retirement allowances you receive for your past ministerial services. Amended 1040 ez The rental value of a parsonage or a parsonage allowance provided to you after you retire. Amended 1040 ez Allowable deductions. Amended 1040 ez   When figuring your net earnings from self-employment, deduct all your expenses related to your ministerial services performed as a self-employed person. Amended 1040 ez These are ministerial expenses you incurred while working other than as a common-law employee of the church. Amended 1040 ez They include expenses incurred in performing marriages and baptisms, and in delivering speeches. Amended 1040 ez Deduct these expenses on Schedule C or C-EZ (Form 1040), and carry the net amount to line 2 of Schedule SE (Form 1040), Section A or B. Amended 1040 ez   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 . Amended 1040 ez Subtract any allowable expenses (including unreimbursed employee business expenses) from those wages, include the net amount on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Amended 1040 ez Do not complete Schedule C or C-EZ (Form 1040). Amended 1040 ez However, for income tax purposes, the expenses are allowed only as an itemized deduction on Schedule A (Form 1040) to the extent they exceed 2% of adjusted gross income. Amended 1040 ez Employee reimbursement arrangements. Amended 1040 ez   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. Amended 1040 ez Ask your employer if you are not sure if it reimburses you using an accountable or a nonaccountable plan. Amended 1040 ez Accountable plans. Amended 1040 ez   To be an accountable plan, your employer's reimbursement arrangement must include all three of the following rules. Amended 1040 ez 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. Amended 1040 ez You must adequately account to your employer for these expenses within a reasonable period of time. Amended 1040 ez You must return any excess reimbursement or allowance within a reasonable period of time. Amended 1040 ez   The reimbursement is not reported on your Form W-2. Amended 1040 ez Generally, if your expenses equal your reimbursement, you have no deduction. Amended 1040 ez If your expenses are more than your reimbursement, you can deduct your excess expenses for SE tax and income tax purposes. Amended 1040 ez Nonaccountable plan. Amended 1040 ez   A nonaccountable plan is a reimbursement arrangement that does not meet all three of the rules listed under Accountable plans above. Amended 1040 ez In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan. Amended 1040 ez Excess reimbursements you fail to return to your employer. Amended 1040 ez Reimbursement of nondeductible expenses related to your employer's business. Amended 1040 ez   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. Amended 1040 ez Since 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. Amended 1040 ez   For more information on accountable and nonaccountable plans, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Amended 1040 ez 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. Amended 1040 ez If the agreement is with one spouse only and the other spouse is not paid for any specific duties, amounts received for their services are included only in the self-employment income of the spouse having the agreement. Amended 1040 ez Earnings Subject to SE Tax For 2013, the maximum net earnings from self-employment subject to social security (old age, survivors, and disability insurance) tax is $113,700 minus any wages and tips you earned that were subject to social security tax. Amended 1040 ez The tax rate for the social security part is 12. Amended 1040 ez 4%. Amended 1040 ez In addition, all of your net earnings are subject to the Medicare (hospital insurance) part of the SE tax. Amended 1040 ez This tax rate is 2. Amended 1040 ez 9%. Amended 1040 ez The combined self-employment tax rate is 15. Amended 1040 ez 3%. Amended 1040 ez Additional Medicare Tax. Amended 1040 ez   Beginning in 2013, a 0. Amended 1040 ez 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (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. Amended 1040 ez Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Amended 1040 ez A self-employment loss is not considered for purposes of this tax. Amended 1040 ez RRTA compensation is separately compared to the threshold. Amended 1040 ez For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. Amended 1040 ez Nonfarm Optional Method You may be able to use the nonfarm optional method for figuring your net earnings from self-employment. Amended 1040 ez 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. Amended 1040 ez You may use the nonfarm optional method if you meet all the following tests. Amended 1040 ez You are self-employed on a regular basis. Amended 1040 ez 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. Amended 1040 ez The net earnings can be from either farm or nonfarm earnings or both. Amended 1040 ez You have used this method less than 5 prior years. Amended 1040 ez (There is a 5-year lifetime limit. Amended 1040 ez ) The years do not have to be consecutive. Amended 1040 ez Your net nonfarm profits were: Less than $5,024, and Less than 72. Amended 1040 ez 189% of your gross nonfarm income. Amended 1040 ez If you meet all three tests, use Table 3 to figure your net earnings from self-employment under the nonfarm optional method. Amended 1040 ez Table 3. Amended 1040 ez Figuring Nonfarm Net Earnings IF your gross nonfarm income is . Amended 1040 ez . Amended 1040 ez . Amended 1040 ez THEN your net earnings are equal to . Amended 1040 ez . Amended 1040 ez . Amended 1040 ez $6,960 or less Two-thirds of your gross nonfarm income. Amended 1040 ez More than $6,960 $4,640. Amended 1040 ez Actual net earnings. Amended 1040 ez   Multiply your total earnings subject to SE tax by 92. Amended 1040 ez 35% (. Amended 1040 ez 9235) to get actual net earnings. Amended 1040 ez Actual net earnings are equivalent to net earnings under the “Regular Method. Amended 1040 ez ” More information. Amended 1040 ez   For more information on the nonfarm optional method, see Publication 334, Tax Guide for Small Business, and the Schedule SE (Form 1040) instructions. Amended 1040 ez 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. Amended 1040 ez Note. Amended 1040 ez For purposes of this section, references to members of the clergy are only to ministers or members of a religious order. Amended 1040 ez 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. Amended 1040 ez 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. Amended 1040 ez , in addition to your salary. Amended 1040 ez If the offering is made to the religious institution, it is not taxable to you. Amended 1040 ez 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. Amended 1040 ez However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. Amended 1040 ez For more information, see Publication 526. Amended 1040 ez 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. Amended 1040 ez 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, possession, political subdivision, or the District of Columbia. Amended 1040 ez This exclusion applies only for income tax purposes. Amended 1040 ez It does not apply for SE tax purposes, as discussed earlier under Amounts included in gross income under Self-Employment Tax: Figuring Net Earnings. Amended 1040 ez Designation requirement. Amended 1040 ez   The church or organization that employs you must officially designate the payment as a housing allowance before it makes the payment. Amended 1040 ez It must designate a definite amount. Amended 1040 ez It cannot determine the amount of the housing allowance at a later date. Amended 1040 ez If the church or organization does not officially designate a definite amount as a housing allowance, you must include your total salary in your income. Amended 1040 ez   If you are employed and paid by a local congregation, a resolution by a national church agency of your denomination does not effectively designate a housing allowance for you. Amended 1040 ez The local congregation must officially designate the part of your salary that is a housing allowance. Amended 1040 ez However, a resolution of a national church agency can designate your housing allowance if you are directly employed by the national agency. Amended 1040 ez Rental allowances. Amended 1040 ez   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 is not more than reasonable pay for your services. Amended 1040 ez   The amount you exclude cannot be more than the fair rental value of the home, including furnishings, plus the cost of utilities. Amended 1040 ez Fair rental value of parsonage. Amended 1040 ez   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. Amended 1040 ez However, the exclusion cannot be more than the reasonable pay for your services. Amended 1040 ez If you pay for the utilities, you can exclude any allowance designated for utility costs, up to your actual cost. Amended 1040 ez Example. Amended 1040 ez Rev. Amended 1040 ez Joanna Baker is a full-time minister. Amended 1040 ez The church allows her to use a parsonage that has an annual fair rental value of $24,000. Amended 1040 ez The church pays her an annual salary of $67,000, of which $7,500 is designated for utility costs. Amended 1040 ez Her actual utility costs during the year were $7,000. Amended 1040 ez For income tax purposes, Rev. Amended 1040 ez Baker excludes $31,000 from gross income ($24,000 fair rental value of the parsonage plus $7,000 from the allowance for utility costs). Amended 1040 ez She will report $60,000 ($59,500 salary plus $500 of unused utility allowance). Amended 1040 ez Her income for SE tax purposes, however, is $91,000 ($67,000 salary + $24,000 fair rental value of the parsonage). Amended 1040 ez Home ownership. Amended 1040 ez   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. Amended 1040 ez Excess rental allowance. Amended 1040 ez   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. Amended 1040 ez   Include in the total on Form 1040, line 7. Amended 1040 ez On the dotted line next to line 7, enter “Excess allowance” and the amount. Amended 1040 ez 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. Amended 1040 ez However, you can only deduct these expenses as itemized deductions on Schedule A (Form 1040). Amended 1040 ez Retired ministers. Amended 1040 ez   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. Amended 1040 ez However, a minister's surviving spouse cannot exclude the rental value unless the rental value is for ministerial services he or she performs or performed. Amended 1040 ez Teachers or administrators. Amended 1040 ez   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. Amended 1040 ez However, if you perform services as a teacher or administrator on the faculty of a nonchurch college, you cannot exclude from your income a housing allowance or the value of a home that the college provides to you. Amended 1040 ez    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. Amended 1040 ez In Publication 525, see Faculty lodging in the discussion on meals and lodging under Fringe Benefits. Amended 1040 ez   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 are not 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 does not apply to you. Amended 1040 ez Theological students. Amended 1040 ez   If you are a theological student serving a required internship as a part-time or assistant pastor, you cannot exclude a parsonage or rental allowance from your income unless you are ordained, commissioned, or licensed as a minister. Amended 1040 ez Traveling evangelists. Amended 1040 ez   You can exclude a designated rental allowance from out-of-town churches if you meet all of the following requirements. Amended 1040 ez You are an ordained minister. Amended 1040 ez You perform ministerial services at churches located away from your community. Amended 1040 ez You actually use the rental allowance to maintain your permanent home. Amended 1040 ez Cantors. Amended 1040 ez   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. Amended 1040 ez 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. Amended 1040 ez See Members of Religious Orders , earlier, under Social Security Coverage. Amended 1040 ez Foreign Earned Income Certain income may be exempt from income tax if you work in a foreign country or in a specified U. Amended 1040 ez S. Amended 1040 ez possession. Amended 1040 ez Publication 54 discusses the foreign earned income exclusion. Amended 1040 ez Publication 570, Tax Guide for Individuals With Income From U. Amended 1040 ez S. Amended 1040 ez Possessions, covers the rules for taxpayers with income from U. Amended 1040 ez S. Amended 1040 ez possessions. Amended 1040 ez You can get these free publications from the Internal Revenue Service at IRS. Amended 1040 ez gov or from most U. Amended 1040 ez S. Amended 1040 ez Embassies or consulates. Amended 1040 ez Expense Items The tax treatment of ministerial trade or business expenses, expenses allocable to tax-free income, and health insurance costs is discussed here. Amended 1040 ez Ministerial Trade or Business Expenses as an Employee When you figure your income tax, you must itemize your deductions on Schedule A (Form 1040) to claim allowable deductions for ministerial trade or business expenses incurred while working as an employee. Amended 1040 ez You also may have to file Form 2106, Employee Business Expenses (or Form 2106-EZ, Unreimbursed Employee Business Expenses). Amended 1040 ez You claim these expenses as miscellaneous itemized deductions that are subject to the 2%-of-adjusted-gross-income (AGI) limit. Amended 1040 ez See Publication 529 for more information on this limit. Amended 1040 ez However, you cannot deduct any of your employee business expenses that are allocable to tax-free income (discussed next). Amended 1040 ez 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. Amended 1040 ez You cannot deduct the portion of your expenses that you allocate to your tax-free rental or parsonage allowance. Amended 1040 ez Exception. Amended 1040 ez   This rule does not apply to your deductions for home mortgage interest or real estate taxes on your home. Amended 1040 ez Figuring the allocation. Amended 1040 ez   Figure the portion of your otherwise deductible expenses that you cannot 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. Amended 1040 ez    Reduce your otherwise deductible expenses only in figuring your income tax, not your SE tax. Amended 1040 ez Example. Amended 1040 ez Rev. Amended 1040 ez Charles 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. Amended 1040 ez He incurred $4,000 of unreimbursed expenses connected with his earnings for ministerial services. Amended 1040 ez $3,500 of the $4,000 is for employee expenses related to his ministerial salary, and $500 is related to the weddings and baptisms he performed as a self-employed person. Amended 1040 ez Rev. Amended 1040 ez Ashford figures the nondeductible (tax-free) portion of expenses related to his ministerial salary as follows: ($10,000 ÷ $40,000) x $3,500 = $875   Rev. Amended 1040 ez Ashford figures the nondeductible (tax-free) portion of expenses related to his wedding and baptism income as follows: ($10,000 ÷ $40,000) x $500 = $125 Required statement. Amended 1040 ez   If you receive a tax-free rental or parsonage allowance and have ministerial expenses, attach a statement to your tax return. Amended 1040 ez The statement must contain all of the following information. Amended 1040 ez A list of each item of taxable ministerial income by source (such as wages, salary, weddings, baptisms, etc. Amended 1040 ez ) plus the amount. Amended 1040 ez A list of each item of tax-free ministerial income by source (parsonage allowance) plus the amount. Amended 1040 ez A list of each item of otherwise deductible ministerial expenses plus the amount. Amended 1040 ez How you figured the nondeductible part of your otherwise deductible expenses. Amended 1040 ez A statement that the other deductions claimed on your tax return are not allocable to your tax-free income. Amended 1040 ez   See the attachments prepared for the Comprehensive Example , later. Amended 1040 ez Following the example, you will find blank worksheets for your own use. Amended 1040 ez Health Insurance Costs of Self-Employed Ministers If you are self-employed, you may be able to deduct the amount you paid in 2013 for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents. Amended 1040 ez If you qualify, you can take this deduction as an adjustment to income on Form 1040, line 29. Amended 1040 ez See the Instructions for Form 1040 to figure your deduction. Amended 1040 ez The following special rules apply to the self-employed health insurance deduction. Amended 1040 ez You cannot take a medical expense deduction on Schedule A (Form 1040) for any expenses you claim for purposes of the self-employed health insurance deduction. Amended 1040 ez You cannot take the deduction for any month you are eligible to participate in a subsidized plan of your (or your spouse's) employer. Amended 1040 ez The deduction cannot exceed your net earnings from the business under which the insurance plan is established. Amended 1040 ez Your net earnings under this rule do not include the income you earned as a common-law employee (discussed earlier) of a church. Amended 1040 ez More information. Amended 1040 ez   For more information about the self-employed health insurance deduction, see chapter 6 in Publication 535. Amended 1040 ez Deduction for SE Tax You can deduct one-half of your SE tax in figuring adjusted gross income. Amended 1040 ez This is an income tax deduction only, on Form 1040, line 27. Amended 1040 ez Do not claim this deduction in figuring net earnings from self-employment subject to SE tax. Amended 1040 ez Income Tax Withholding and Estimated Tax The federal income tax is a pay-as-you-go tax. Amended 1040 ez You must pay the tax as you earn or receive income during the year. Amended 1040 ez An employee usually has income tax withheld from his or her wages or salary. Amended 1040 ez However, your salary is not subject to federal income tax withholding if both of the following conditions apply. Amended 1040 ez You are a duly ordained, commissioned, or licensed minister, a member of a religious order (who has not taken a vow of poverty), or a Christian Science practitioner or reader. Amended 1040 ez Your salary is for ministerial services (see Ministerial Services , earlier). Amended 1040 ez If your salary is not subject to withholding, or if you do not pay enough tax through withholding, you may need to make estimated tax payments to avoid penalties for not paying enough tax as you earn your income. Amended 1040 ez You generally must make estimated tax payments if you expect to owe taxes, including SE tax, of $1,000 or more, when you file your return. Amended 1040 ez Determine your estimated tax by using the worksheets in Publication 505, Tax Withholding and Estimated Tax. Amended 1040 ez Pay the entire estimated tax for 2014 or the first installment by April 15, 2014. Amended 1040 ez See Form 1040-ES for the different payment methods. Amended 1040 ez The April 15 date applies whether or not your tax home and your abode are outside the United States and Puerto Rico. Amended 1040 ez For more information, see chapter 2 of Publication 505. Amended 1040 ez If you perform your services as a common-law employee of the church and your salary is not 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. Amended 1040 ez Filing Your Return You must file an income tax return for 2013 if your gross income was at least the amount shown in the third column of Table 4 above. Amended 1040 ez Table 4. Amended 1040 ez 2013 Filing Requirements for Most Taxpayers IF your filing status is . Amended 1040 ez . Amended 1040 ez . Amended 1040 ez AND at the end of 2013 you were* . Amended 1040 ez . Amended 1040 ez . Amended 1040 ez THEN file a return if your gross income** was at least . Amended 1040 ez . Amended 1040 ez . Amended 1040 ez single under age 65 65 or older   $10,000 $11,500   married filing jointly*** under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)   $20,000  $21,200  $22,400   married filing separately any age   $3,900   head of household under 65 65 or older   $12,850 $14,350   qualifying widow(er) with dependent child under 65 65 or older   $16,100  $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Amended 1040 ez ** Gross income means all income you received in the form of money, goods, property, and services that is not 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). Amended 1040 ez Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2013, 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). Amended 1040 ez If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b, to figure the taxable part of social security benefits you must include in gross income. Amended 1040 ez Gross income includes gains, but not losses, reported on Form 8949 or Schedule D (Form 1040). Amended 1040 ez Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Amended 1040 ez But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C (Form 1040), line 7, or Schedule F (Form 1040), line 9. Amended 1040 ez *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Amended 1040 ez Additional requirements. Amended 1040 ez   Even if your income was less than the amount shown in Table 4, you must file an income tax return on Form 1040, and attach a completed Schedule SE (Form 1040), if:    You are not 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. Amended 1040 ez 28 or more from an electing church or church-controlled organization (see Coverage of Religious Workers (Church Employees) , earlier, under Social Security Coverage). Amended 1040 ez Self-employment tax. Amended 1040 ez   If you are liable for SE tax, you must file Schedule SE (Form 1040) with your return. Amended 1040 ez   If you filed Form 4361 and did not receive approval from the IRS, you must pay SE tax on your ministerial earnings, as explained earlier. Amended 1040 ez You should report ministerial earnings and expenses from nonemployee ministerial services on Schedule C or C-EZ (Form 1040). Amended 1040 ez You should then carry the net amount over to line 2 of Schedule SE (Form 1040), Section A or B. Amended 1040 ez 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, do not report those wages on Schedule C or C-EZ (Form 1040). Amended 1040 ez Instead, report those wages less any allowable expenses (including any unreimbursed employee business expenses), on line 2 of Schedule SE (Form 1040), Section A or B, and attach an explanation. Amended 1040 ez Note. Amended 1040 ez For income tax purposes, the unreimbursed employee business expenses that you incurred as an employee of the church and subtracted from your wages on line 2 of Schedule SE (Form 1040) are allowed only as an itemized deduction on Schedule A (Form 1040) if they exceed 2% of your adjusted gross income. Amended 1040 ez You cannot deduct these expenses on Schedule C or C-EZ (Form 1040) as a trade or business expense. Amended 1040 ez Exemption from SE tax. Amended 1040 ez   If you filed Form 4361 and received IRS approval not to be taxed on your ministerial earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Amended 1040 ez Instead, enter “Exempt—Form 4361” on the dotted line next to Form 1040, line 56. Amended 1040 ez 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), Section B. Amended 1040 ez    If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and you do not have any other income subject to SE tax, do not file Schedule SE (Form 1040). Amended 1040 ez Instead, enter “Exempt—Form 4029” on the dotted line next to Form 1040, line 56. Amended 1040 ez More information. Amended 1040 ez   For more information on filing your return, including when and where to file it, see the Instructions for Form 1040. Amended 1040 ez Retirement Savings Arrangements Retirement savings arrangements are plans that offer you a tax-favored way to save for your retirement. Amended 1040 ez You generally can deduct your contributions to the plan. Amended 1040 ez Your contributions and the earnings on them are not taxed until they are distributed. Amended 1040 ez Retirement plans for the self-employed. Amended 1040 ez   To set up one of the following plans you must be self-employed. Amended 1040 ez SEP (simplified employee pension) plan. Amended 1040 ez SIMPLE (savings incentive match plan for employees) plan. Amended 1040 ez Qualified retirement plan (also called a Keogh or H. Amended 1040 ez R. Amended 1040 ez 10 plan). Amended 1040 ez   The common-law rules determine whether you are an employee or a self-employed person for purposes of setting up a retirement plan. Amended 1040 ez See Employment status for other tax purposes under Coverage of Members of the Clergy, earlier. Amended 1040 ez This result is true even if your compensation for ministerial services (defined earlier) is subject to SE tax. Amended 1040 ez   For example, if a congregation pays you a salary for performing ministerial services and you are subject to the congregation's control, you generally are a common-law employee. Amended 1040 ez You are not a self-employed person for purposes of setting up a retirement plan. Amended 1040 ez This result is true even if your salary is subject to SE tax. Amended 1040 ez   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 or C-EZ (Form 1040), are earnings from self-employment for all tax purposes. Amended 1040 ez   For more information on establishing a SEP, SIMPLE, or qualified retirement plan, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Amended 1040 ez Individual retirement arrangements (IRAs). Amended 1040 ez   The traditional IRA and the Roth IRA are two individual retirement arrangements you can use to save money for your retirement. Amended 1040 ez Generally, your maximum contribution for 2013 to either of these plans (or to a combination of the two) is the smaller of your taxable compensation or $5,500 ($6,500 if you are age 50 or older). Amended 1040 ez   However, your maximum contribution to a Roth IRA will be further reduced or eliminated if your adjusted gross income is above a certain amount. Amended 1040 ez You cannot 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. Amended 1040 ez   If you contribute to a traditional IRA, your contribution may be deductible. Amended 1040 ez 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). Amended 1040 ez   For more information on IRAs, see Publication 590. Amended 1040 ez Tax-sheltered annuity plans. Amended 1040 ez   Church employees, members of religious orders, and duly ordained, commissioned, or licensed ministers working as ministers or chaplains can participate in tax-sheltered annuity (403(b)) plans. Amended 1040 ez For more