Special rules apply to Ministers for Tax Purposes. Ministers and churches should understand those rules, so they can comply with federal tax laws. Ministers for Tax Purposes:

• Are eligible for a church-designated housing allowance
• Are always self-employed for Social Security purposes for their ministerial income.
• Are exempt from federal income tax withholding.
• Use the quarterly estimated tax procedure to pay their taxes, unless they elect voluntary withholding.
• May be eligible to opt out of Social Security, although very few ministers qualify to do this.

For more information, visit the Ministers' Tax Guide