IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers

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DEFINITION of 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

A document published by the Internal Revenue Service that details how members of the clergy or other religious workers are to pay Social Security and Medicare taxes. These two types of taxes are collected through either the Self-Employment Contributions Act (SECA) system or the Federal Insurance Contributions Act (FICA) system, but not both. IRS Publication 517 indicates which forms of income are subject to SECA and which are subject to FICA rules.

BREAKING DOWN 'IRS Publication 517 - Social Security And Other Information For Members Of The Clergy & Religious Workers'

Whether or not a religious worker is covered under SECA or FICA depends heavily on the type of religious order. For example, religious workers who work for an organization in which a vow of poverty is taken are exempt from SECA, and are thus covered by FICA. A religious worker who does not take a vow of poverty is not exempt from FICA, and is thus covered by SECA. Since SECA is for self-employed workers, different rules apply to how net earnings are treated.

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RELATED FAQS
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    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
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    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  3. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
  4. How do you calculate penalties on an IRA or Roth IRA early withdrawal?

    With a few exceptions, early withdrawals from traditional or Roth IRAs generally incur a tax penalty equal to 10% of the ... Read Full Answer >>
  5. Are credit card rewards taxable?

    Credit card rewards are taxable in the United States some of the time. The Internal Revenue Service (IRS) classifies credit ... Read Full Answer >>
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