Support CenterHow do I enter Minister's income in SureFire for the amount to be exempt from SE tax for income earned on W2 or 1099? - How to make SE tax not taxable for a minsters.
🔍 How do I enter Minister's income in SureFire for the amount to be exempt from SE tax for income earned on W2 or 1099?
This article explains how to handle ministerial income in SureFire so the correct amount is exempt from SE (self-employment) tax, depending on whether your income is reported on a W2 or on a 1099/Sch C.
⚠️ Before You Begin
Before you start, confirm whether the exempt form 4361 was approved by the IRS for the ministerial exemption you are using.
📊 Step-by-Step Guide
Step 1: W2 income (ministerial services only)
Use this when your income is only for ministerial services and you are using the Schedule SE exemption.
On the Schedule SE, check the box A at the top of the Sch SE if the exempt form 4361 was approved by the IRS.
No SE tax will be computed.
On the 1040 page 2, Line 57 the Form 4361 will be checked off.
Step 2: 1099 / Sch C income (ministerial services)
Use this when your ministerial income is reported on a 1099 and/or on Schedule C.
You will have to go to the SE and override the income to exclude the amount for Ministerial services.
This will deactivate the Sch E in the return.
❌ Important Note About Exemptions
The self-employment income earned by ministers, even if approved by the IRS will not be exempt from SE tax, if the services performed are not considered ministerial services.
📝 What Counts as Ministerial Services?
Ministerial services, in general, are the services you perform in the exercise of your ministry, in the exercise of your duties as required by your religious order, or in the exercise of your profession as a Christian Science practitioner or reader.
Income you receive for performing ministerial services is subject to SE tax unless you have an exemption as explained later.
Even if you have an exemption, only the income you receive for performing ministerial services is exempt. The exemption doesn't apply to any other income.
Most services you perform as a minister, priest, rabbi, etc., are ministerial services. 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
https://taxmap.irs.gov/taxmap/pubs/p517-001.htm#en_us_publink100033572
📞 Still Need Help?
If you are having trouble, contact our support team:
Phone: 1-800-516-9442
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