catholic priest

[TAXMAN]

Ok I need some imput. Our local catholic church issued a W_2 to our priest. No entry in SS and MT boxes which I understand. However Is he subject to the SECA rules. I read that IRS see the fellows as have taken a vow of poverty and thus no SE Tax. However I also read that they are not exempt from this tax. There is no stated Housing Allowance on the w-2 or in the church minutes. 2 priest share the parsonage. I cannot get them to give me a number, however all is mute if he is Exempt from the SE tax. However the EIC is popping in on this income Less than $10,000. I read and read but can't seem to get a grip on this. Please help if you can or are knowledgeable in this are. Many thanks.

[Lion EA]

Did your priest opt out of the SS system? Most main stream religions discourage their clergy from opting out. So, yes, he may be responsible for SE tax. Ask your client for the value of his employer-provided housing; it may be a line item in the church budget. The church treasurer may be a good resource.

[jainen]

>>Did your priest opt out of the SS system?<<

Catholics can not opt out because opposition to public insurance is not one of the tenets of their faith. However, members of certain Catholic orders have taken a vow of poverty, which under another provision exempts them from SE tax.