- 4 -4 self-employment income consists of the net earnings derived by an individual (other than a nonresident alien) from a trade or business carried on by such individual. See sec. 1402(a) and (b); sec. 1.1401-1(c), Income Tax Regs. Section 1402(e), in pertinent part, provides an exemption from the self-employment tax, for certain ministers, on self- employment income derived from the performance of services as a minister. Section 1402(e)(1) provides this exemption to ministers who file for the exemption pursuant to section 1402(e)(3). Since petitioner was not a minister, this provision is not applicable to petitioner. Section 1402(g) provides generally for an exemption from the payment of self-employment tax by taxpayers who are conscientiously opposed, on religious grounds, to accepting the benefits of any private or public insurance. In order to qualify for the exemption, the taxpayer seeking such exemption must be a member of a recognized religious sect or division thereof and must adhere to the sect's or division's established tenets or teachings that promote opposition to acceptance of the benefits of private or public insurance. Additionally, taxpayers seeking the exemption must file, with the Internal Revenue Service, a Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. See sec. 1.1402(h)-1(b), Income Tax Regs. The mere filing of a return showing no self-Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011