Religious Objectors (Members of Certain Religious Groups)

One of the few groups that can opt out of Social Security is members of certain religious groups that oppose receiving Social Security benefits for religious reasons. These groups must have a longstanding objection to receiving government benefits.

• Qualifying Religious Groups: To opt out of Social Security, individuals must belong to a recognized religious group that conscientiously objects to accepting benefits from a government-run program like Social Security. For example, members of the Christian Science Church or Mennonites may qualify if they meet specific criteria.
• How It Works: To opt out, individuals must file IRS Form 4361, which is the Application for Exemption from Self-Employment Tax for Members of a Religious Sect or Division. The application must be submitted to the IRS, and the applicant must demonstrate that they meet the requirements for religious exemption.
• Important Considerations: Exemptions are not automatic, and approval is at the discretion of the IRS. Additionally, opting out means that individuals will not receive Social Security benefits in the future, such as retirement or disability payments. It also means that their contributions will not count toward future Social Security benefits.

Non-Citizens Who Are Not Legally Employed

In some cases, non-citizens who are working in the United States may not be required to pay into Social Security if they are not legally authorized to work.

• Non-Immigrant Workers: Certain non-citizens (e.g., diplomats or foreign government employees) may be exempt from paying Social Security taxes due to their status. These individuals will still need to file appropriate tax returns but may not have Social Security deductions taken from their income.
• Special Agreements with Other Countries: The U.S. has totalization agreements with some countries that may exempt workers from paying U.S. Social Security taxes if they are already paying into their own country’s social security system. This can prevent double taxation for individuals who work in both countries.

Federal Employees Under a Specific Retirement System

Certain federal employees who are covered under the Civil Service Retirement System (CSRS) may not be required to pay into Social Security. This applies primarily to employees who began working for the federal government before 1984.

• CSRS Employees: Federal employees under CSRS, which was replaced by the Federal Employees Retirement System (FERS) in 1984, do not pay Social Security taxes on their wages. Instead, they participate in the CSRS, which provides retirement, disability, and survivor benefits.
• FERS Employees: Employees under the Federal Employees Retirement System (FERS) are generally required to pay into Social Security, but certain employees may be able to opt out under very specific circumstances.

Certain State and Local Government Workers

In some cases, state and local government workers may be exempt from paying into Social Security. This generally depends on the state and whether the worker is covered by a separate pension system.

• Government Workers with Separate Pension Plans: Some state and local government workers are not required to pay into Social Security if their employer provides a retirement plan that is equivalent to Social Security benefits. These plans, known as "non-covered" plans, are typically in place in areas where the government offers a robust retirement system.
• State-Specific Rules: The eligibility to opt out or be exempt from Social Security varies by state and depends on the specific agreement between the state and the federal government.

Individuals Who Are Self-Employed in Certain Situations

Self-employed individuals typically pay Self-Employment Tax (SE tax), which funds Social Security and Medicare. However, there are some cases where a self-employed individual may be exempt from paying this tax.

• Religious Exemptions: As mentioned earlier, members of certain religious sects may be able to opt out of Social Security. Self-employed individuals in these religious groups can file IRS Form 4361 to seek an exemption from paying SE tax.
• Non-Resident Aliens: Non-resident aliens working in the U.S. for a limited time and not intending to stay permanently may not be required to pay into Social Security. This depends on their visa type and country of origin.

Temporary Workers or Individuals with Limited Time in the U.S.

Some individuals who are in the U.S. temporarily, such as foreign diplomats, students on certain visas, and other non-resident aliens, may not be required to pay Social Security taxes.

• Foreign Diplomats: Foreign diplomats and officials working in the U.S. under a diplomatic visa may be exempt from paying into Social Security, as they are typically covered by their home country’s social security system.
• Students and Scholars: Certain international students and scholars on visas such as the F-1 or J-1 may be exempt from paying Social Security taxes if they meet the conditions set by the IRS.