Federal · H.R. 227, Public Law 119-125

Clergy Act (H.R. 227, Public Law 119-125): ministers who opted out of Social Security get a new chance to opt back in, starting with 2029

Signed Oct. 20, 2026 · Applies to tax years after 2028

Published October 26, 2026 · Last updated October 26, 2026

Background

Ministers, members of religious orders and Christian Science practitioners normally pay Social Security and Medicare tax on ministry earnings as self-employment (SE) tax. They can ask to be exempt by filing IRS Form 4361 if they are conscientiously opposed to public insurance because of religious considerations or their denomination’s principles, and not for economic reasons. The IRS says: “Once the exemption is approved, it is irrevocable.” Earlier one-time chances to switch back were offered for the 1986, 1987, 2000 and 2001 tax years (Form 2031). (IRS Publication 517)

What the law does

• Who can use it. A duly ordained, commissioned or licensed minister of a church, a member of a religious order, or a Christian Science practitioner who has an exemption under section 1402(e)(1) of the tax code that is in effect for the tax year in which the law was enacted (2026). (Enrolled text, sec. 2(a))
• How. By filing an application to revoke the exemption, in the form and manner the IRS Commissioner sets. (Sec. 2(a))
• Deadline. No later than the due date of your federal income tax return, including extensions, for your second tax year beginning after December 31, 2028. For calendar-year filers, that is the 2030 tax return. (Sec. 2(a))
• When coverage starts. You choose in the application: your first tax year beginning after December 31, 2028 (2029 for calendar-year filers) or your second (2030), and every year after. (Sec. 2(a))
• Permanent. After revoking, you may not apply for the exemption again. (Sec. 2(a))
• Late filing. If you file after the return due date for a year you want covered, you must pay in full the self-employment tax for that year along with the application. (Sec. 2(a))
• Benefits. Social Security benefits based on your earnings, including lump-sum death payments, follow the new coverage starting in the calendar year your revocation takes effect. (Sec. 2(b))
• Outreach. Within 90 days of enactment, the IRS, working with the Social Security Administration, must give the House Ways and Means and Senate Finance committees a plan to tell eligible clergy about the option. (Sec. 3)

Who it affects

• Clergy in South Carolina (ministers, members of religious orders and Christian Science practitioners) who previously got an approved exemption from SE tax. (Sec. 2(a))
• It does not change anything for clergy who never took the exemption. (Sec. 2(a))

What it means for you

• If you are exempt now, nothing changes unless you apply. The earliest revocation applies to tax years beginning after December 31, 2028. (Sec. 2(a)–(b))
• If you revoke, you will owe self-employment tax on ministry earnings from the year you choose onward, and those earnings will count toward Social Security. (Sec. 2(a)–(b))
• The IRS has not yet released the application form or instructions. The law leaves the form and process to the IRS Commissioner. (Sec. 2(a))

Current status

Rep. Vince Fong (R-Calif.) introduced H.R. 227 on January 7, 2025. The House Ways and Means Committee voted 40-0 on December 10, 2025 to report it (H. Rept. 119-425), and the House passed it 350-5 on April 27, 2026 (Roll no. 139). The Senate Finance Committee was discharged and the Senate passed it without amendment by unanimous consent on September 30, 2026. It was presented to the President October 15 and signed October 20, 2026, becoming Public Law 119-125. (Congress.gov, actions)

What happens next

The IRS outreach plan is due to Congress within 90 days of October 20, 2026 (about January 18, 2027). Revocations take effect for tax years beginning after December 31, 2028. (Secs. 2(b), 3)

Sources

• Congress.gov: H.R.227, Clergy Act, actions and status
• Enrolled bill text, H.R. 227
• IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.