How Does Clergy Pay Estimated Taxes?

How Does Clergy Pay Estimated Taxes?

Pastors, Ministers and other Clergy Staff are subject to estimated federal, social security and state tax payments on a quarterly basis.

For example, when you receive clergy income in the first quarter of the year, the taxes are due at the end of that quarter. The year is divided into four payment periods, or due dates, for estimated tax purposes which are listed below. Clergy can also elect to have income taxes withheld from their compensation by means of voluntary withholding agreements which may simplify their budgeting.

To avoid possible underpayment penalties, clergy are generally required to pay in through withholding or estimated tax payments the lesser of: 100% of prior year tax liability or 90% of current year tax liability. You can use IRS Form 1040-ES (Estimated Tax for Individuals). For more information, see IRS Publication 505 (Tax Withholding and Estimated Tax).

2019 estimated tax payments for individuals are due by:

          1. 4/15/2019
          2. 6/17/2019
          3. 9/16/2019
          4. 1/15/2020


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