An Explanation of Tax Services: Who Qualifies for Social Security Exemption?
Most of us by law are required to pay Social Security taxes on our income, however according to a number of tax services professionals there a number of specific groups of people that qualify for social security tax exemption. They are exempt only if they meet certain requirements and being exempt from social security taxes usually means that you are ineligible to receive the benefits from Social Security as a result even if you meet qualifications such as age and occupational guidelines.
Here are specific groups of people that qualify for social security exemption.
Ministers are allowed to opt out of paying Social Security payroll taxes based upon their religious beliefs if they so choose. A minister must be ordained or licensed to qualify for this exemption and the church that hired the minister must be considered a tax-exempt religious organization. Explained by churchlawtoday.com, a minister who wants to be exempt from Social Security Payroll taxes must assert that he is “conscientiously opposed to any form of public insurance because of his religious beliefs.”
Based upon their religious beliefs, Amish workers can also claim exemption. The Amish have religious beliefs that do not allow them to receive public government funds in the form of compensation; therefore the IRS has ruled that they may choose social security tax exemption. Overall the Amish do pay an array of taxes including tax on goods, services, and personal property, but they are exempt from paying Social Security.
Foreign Government Employees
According to United States tax services laws, employees of foreign governments are also exempt from paying Social Security on income paid to them as a result of their official duties. If the foreign government employee is working in an official capacity, however the Social Security exemption does not apply to servants of employees of a foreign government or the foreign official’s children or spouse unless they too are employed by the foreign government.
Temporary Nonresident Students and Educators
Nonresident aliens that are students or educators are also exempt. According to IRS.gov this list includes scholars, professors, teachers, trainees, researchers, physicians, au pairs, summer camp workers, etc. They qualify as long as their duties are performed with the intention to complete the purpose associated with their visas.
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