Tax Advisor’s – Your Thoughts On This Question Of The Week?
A 62 year old exempt Catholic Priest has paid 44 quarters of social security and medicare payments with the past eleven years of income tax returns. He qualifies for medicare at age 65, reduced social security at age 62 and full social security at age 66.
Can the Catholic Priest stop paying social security and medicare payments on future earnings?
Every Friday, TaxConnections addresses a question submitted to our Ask Tax Questions Platform. We ask our members to offer their thoughts on this question for the week. We realize you may need more information which you can request in the comments section below, or reach taxpayer privately as a TaxConnections Member.
Please Make Comments Below To Communicate Your Thoughts
Kat Jennings, Founder of ET Search LLC offering retained tax search services and TaxConnections Inc., the leading tax professional branding platform. Through ET Search LLC, we provide: 1) Internationally recognized, retained executive tax search services for multinational corporations, public accounting firms, and law firms; and through TaxConnections: 2) Provide brand building services to expand the reach of tax professionals and their firms.
The tax candidates we introduce to clients are hidden and will never submit a resume through a resume portal tracking their activity. This leaves an underground population of tax candidates inaccessible to most companies who seek technically sophisticated tax executives for their open tax roles.
As a globally recognized consultant to multinational organizations, accounting firms, and law firms searching for tax expertise, Kat has been retained by public accounting firms, law firms, and corporations worldwide including Apple Computer, AC Neilson, Accenture, Agilent Technologies, Allergan, Alza, American Express, American Media, Aon, Baker & McKenzie, Barclays Bank, Bechtel, Cargill, Carl Zieuss Vision, Century Aluminum, Chevron, Clorox, Citigroup, Commercials Metals, Constellation Energy, Countrywide, Del Monte, Deloitte Touche, DFS, DLA Piper, E&J Gallo Winery, Electronic Arts, Ernst &Young, Fox Entertainment, Fremont Investments, General Electric, General Motors, Herbalife, Hewlett Packard, Hyatt, Intel, Jones Lang LaSalle, Kimco Realty, KLA Tencor, Koch Industries, KPMG, Levi Strauss, Liberty Mutual, LKQ, Loews, Logitech, Lucas Film, Maersk, McKesson, Nalco, Newell Rubbermaid, Nissan, Oracle, Orbitax, Pacific Gas & Electric, PwC, QAD, SAIC, SanDisk, Sanmina, Sempra Energy, SONY, Synopsys, Ticketmaster, Trimble Navigation, Toyota, Univar, Wells Fargo, Vertex, Yahoo, Xilinx, and many more not listed here.
Learn how we operate at https://etsearch.com/retained-tax-executive-search/
Contact Kat at 858,999.0053 Office/858.232.4415 Cell or kat@etsearch.com to request a private consultation about a search.
Join us as a TaxConnections Member to expand your brand. https://www.taxconnections.com/membership/sign-up
3 comments on “Tax Advisor’s – Please Help Answer Tax Question Of The Week!”
I believe that if he continues to pay in his monthly Social Security payments will increase – but you would have to do a cost-benefit analysis to determine if it is worth his while to do so. Also don’t forget that if he takes early Social Security payments he is limited in what he can earn.
I don’t believe that the priest can stop paying the Social Security taxes on wages that he continues to earn even though he had fully paid for 40 quarters. The social security benefits that he draws down in future will be based on the highest 40 quarter amounts paid for calculating his benefits. On the assumption that his future pay is higher than some of the earlier quarterly payments made, he will benefit from these additional payments.
Clearly, he should delay claiming the social security income if continues to be employed. Otherwise, as much as 85% of the social security benefits could be subject to federal and state income taxes.
The Priest can possible gain exemption from paying social security taxes for future years if he files IRS Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners. Of course, he will have to meet the requirements established by the IRS. Electing out will not affect the social security benefits to which he is otherwise entitled.
Comments are closed.