Minister wants to opt back in
Posted 16 April 2011 - 01:14 PM
Anyone have an idea where to look to find out the specifics on the process to opt back in?
@MAMalody: Is this something you have any experience in?
Posted 16 April 2011 - 01:29 PM
Posted 16 April 2011 - 01:45 PM
It's hard not to be cynical about such hypocrisy. The exemption is supposed to be for clergy who are conscientiously opposed to public insurance benefits, not to paying taxes. Oh, I shouldn't say that. Maybe she just had an epiphany. Advancing age will do that.
Well, Congress has from time to time allowed the election to be revoked, but the last time was eleven years ago. Details are in Pub 517.
Posted 16 April 2011 - 01:54 PM
I have never seen this done, however, an argument could be made that the opt out was done on a "misunderstanding of the criteria," that the minister does NOT have a theological objection. Essentially that is what the prior windows to opt back in were for..so there is a precedent for forgiveness. You might try that in a letter. If granted, and the odds are very slim, you could be liable for all back taxes...then there are statute issues...potential fraud issues, questions on why you didn't exercise the 2002 option, etc.
The bottom line is, as it stands, they are out. Option: get a part-time job for the next couple of years to earn the remaining 7 credits. Since medicare is more the issue that SS, that could be a good idea. Just some rambling thoughts.
Posted 16 April 2011 - 02:13 PM
Of course that's the answer! Obviously since she no longer believes in the tenets of her faith, she will no longer be serving as a minister anyway....
Posted 16 April 2011 - 06:38 PM
1) Can the church pay her on a W2 with withholding this year?
2) Can she take a second non-church job and receive both a W2 from the church with the opt out and also a W2 from a part time job with withholding?
Posted 16 April 2011 - 11:43 PM
Posted 17 April 2011 - 09:27 AM
This only applies to her work as a minister. Unless the church itself has elected out, it deducts Social Security on other employees such as teachers, office staff, and community organizers. Often their work is similar to the clergy, so maybe she can come up with a plan. I still think it is dirty, though.
Posted 17 April 2011 - 09:39 AM
Posted 17 April 2011 - 02:56 PM
So as Mike pointed out, if she performs services in a second job or a different job, she automatically receives SocSec income and the accompanying credits. She just can't have her church change the way it pays her - I think that clearly crosses the line Jainen is referring to.
Whether it's right or wrong to work a job which qualifies her for SocSec benefits ( or whether she accepts them even if forced to pay for them) since she initially objected to SocSec benefits on theological principle, I suppose she will just have to reconcile that issue between herself and her Boss at the appropriate time.
Posted 18 April 2011 - 05:53 AM
Thanks - that confirms the conclusion I reached!
Posted 18 April 2011 - 11:07 AM
0 user(s) are reading this topic
0 members, 0 guests, 0 anonymous users