Clergy Act Offers Social Security Opt-In: Religious Workers Have Until 2028 to Revoke Tax Exemption

This new legislation, dubbed the “Clergy Act,” creates a specific path for certain religious workers—ministers, members of religious orders, and Christian Science practitioners—to join the Social Security system even if they previously opted out. Currently, many of these workers are exempt from paying Social Security self-employment taxes, but this bill allows them to revoke that exemption and start contributing, thereby earning future retirement and disability benefits. The option to revoke the exemption applies to service performed in taxable years beginning after December 31, 2028.

The Retirement Catch-Up Window

For those who previously chose the exemption but now want the security of Social Security benefits, this bill opens a specific window. A religious worker must file their application to revoke the exemption no later than the due date of their federal income tax return for their second taxable year beginning after December 31, 2028. This move is a big deal because once you revoke the exemption and start paying into Social Security, you can never go back and apply for the exemption again (SEC. 2).

If a minister or practitioner wants their coverage to start with their first taxable year after 2028, they need to make sure they file on time. If they miss that initial filing deadline, the bill allows them to still apply later, but there’s a financial catch: they must include full payment of all self-employment taxes that would have been owed for that year if the exemption hadn't been in place (SEC. 2). This means that while the window is flexible, applying late could come with a significant, lump-sum tax bill—a critical detail for anyone thinking about making this switch.

What This Means for the Wallet

For religious workers who choose to revoke their exemption, the immediate real-world impact is an increase in their tax liability. They will start paying the self-employment tax (currently 15.3% of net earnings) that funds Social Security and Medicare. This is the trade-off: higher taxes now for eligibility for retirement, disability, and survivor benefits later. For someone who has spent decades outside the system, this is a chance to build a safety net, but it requires budgeting for the new tax burden.

To ensure eligible individuals don't miss out on this opportunity, the bill mandates that the Commissioner of Internal Revenue, in consultation with the Commissioner of Social Security, must develop and submit a plan to Congress within 90 days of enactment. This plan is specifically designed to inform these religious workers that they are now eligible to revoke their prior exemption, cutting through the bureaucratic noise to reach the people who need to know (SEC. 3).