An ordained minister may be granted an exemption from self-employment (SE) tax from ministerial services only. To qualify, the church employing the minister must qualify as a religious organization under Code Section 501(c)(3), the section of the tax code that applies to non-profits. 

Application for exemption is filed in triplicate on Form 4361, Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners.

The application must be filed on or before the extended due date of the return for the second tax year for which the individual has net earnings from self-employment of $400 or more (part of which is from services as a minister). A late application will be rejected. Time for applying starts over when a minister who was not opposed to accepting public insurance (i.e., Social Security benefits) re-enters a new ministry (e.g., adopts a new set of beliefs that include opposition to public insurance with a different church). However, the IRS has said that there is no second chance to apply for exemption by a minister who is ordained in a different church but whose belief regarding public insurance doesn’t change (i.e., the minister opposed acceptance of public insurance in both faiths). (CCM 200404048)

If the IRS has approved Form 4361 and the minister has no other income subject to SE tax, Schedule SE is not required to be filed. Instead, on Form 1040 or 1040-SR, Schedule 2, line 4, enter “exempt-Form 4361”. However, if the minister has other earnings of $400 or more subject to SE tax, then complete Part I of Schedule SE and be sure to check box A just above line 1a.