Members of certain religious groups may qualify for an exemption from the Social Security tax. To do so, they must:
- Waive their rights to all benefits under the Social Security Act, including hospital insurance benefits; and
- Meet the following requirements:
- Be a member of a recognized religious sect conscientiously opposed to accepting benefits;.
- Be a member of a religious sect that makes a reasonable provision for its dependent members and has done so continuously since December 31, 1950.
- Have never received or been entitled to any benefits payable under Social Security programs;
If you meet all these stipulations you can claim the Social Security self-employment tax exemption. To do so, file IRS Form 4029 (Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits) with the Social Security Administration.
The IRS will either approve or disapprove your application once Social Security determines whether your religious sect meets the above requirements.