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Claiming the Tax Exemption

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1129. Claiming the Tax Exemption

1129.1 How can the Social Security self-employment tax exemption be claimed?

To claim the exemption, you must file IRS Form 4029 (Application for Exemption From Social Security Taxes and Waiver of Benefits) with the IRS. The application for exemption must be filed on or before the due date for the tax return for the first taxable year in which you have self-employment income or are a member of an approved organization.

1129.2 How long does the exemption remain in effect?

Once granted, the exemption remains in effect until you or the religious group of which you are a member ceases to meet the requirements stated in §1128. If the exemption and waiver cease to be effective, any future Social Security benefits are payable only based on your earnings beginning with the first taxable year that the exemption is not in effect.

Last Revised: March, 2001

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