How to Make Your First Estimated Tax Payment After Filing an Extension
To make your first estimated tax payment by April 15th, follow these steps: Calculate Your Estimated Tax Liability Estimate Your Income: Project your income for the year, including wages, dividends, interest, and any other sources. Deductions and Credits: Estimate your deductions and credits to reduce your taxable income. Tax Rate: Apply the appropriate tax rate…
Missed an estimated tax payment?
If you missed a quarterly estimated tax payment, here are some steps you can take: Make the Payment as Soon as Possible: Even if it’s late, making it as soon as possible will help reduce any potential penalties and interest. The IRS may charge a penalty for underpayment of estimated taxes, which is calculated based…
Estimated Tax – Safe Harbor Rules
Because clergy are exempt from tax withholding on their paychecks, they will usually need to make Estimated Tax Payments throughout the year to ensure that their taxes are paid. If you don’t do it, it can result in penalties. If you expect to owe at least $1,000 in tax for 2025 AND all of your…
Quarterly Estimated Tax Payments – Reminder
Quarterly Estimated Tax Payments – Reminder If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st, 2022 quarter of the year is January 17th, 2023. You may be able to skip the January 18th payment if you file your 2022 return by January 31st,…
When Are 2022 Q2 Estimated Taxes Due?
When Are 2021 Q2 Estimated Taxes Due? The tax system in the U.S. is “pay as you go,” so estimated taxes are due on a quarterly basis. The expectation is that each taxpayer will pay their estimated income and self-employment taxes due for the most recently-completed calendar quarter. The due date for the second quarter’s taxes, covering…
Quarterly Payments Tips
Quarterly Payments Tips In a non-clergy job, the employer withholds an employee’s federal income tax and Social Security tax from every paycheck. But clergy are classified as dual status employees and are exempt from both federal income tax withholding and considered self-employed for Social Security tax purposes. This means a church normally won’t withhold income tax and…
Quarterly Estimated Tax Payments – Q4 Reminder
Quarterly Estimated Tax Payments – Reminder If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st, 2021 quarter of the year is January 18th, 2022. You may be able to skip the January 18th payment if you file your 2021 return by January 31st,…
W-4 Withholding Calculator for Clergy
W-4 Withholding Calculator for Clergy According to IRS rules, income tax withholding for ministers is voluntary. If you do not complete a W-4 form, or if you indicate “exempt”, no federal tax will be withheld, and you should make quarterly estimated tax payments. Alternatively, you can complete Form W-4 so that your church withholds a…
What clergy need to know about estimated payments
What clergy need to know about making 2021 estimated tax payments The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. If you didn’t…
Three key tax provisions that apply to clergy
The three main key tax provisions that apply to clergy: Self-employment tax Clergy are not eligible to have FICA taxes withheld from their church compensation. In lieu of FICA taxes, clergy pay self-employment tax, also known as Self-Employment Contributions Act tax (SECA). Reimbursements from an employer of SECA are taxable as wages. However, even though…
