Church Treasurers: How Voluntary Withholding Can Spare Your Pastor an April Surprise
Ministers’ pay isn’t subject to mandatory withholding, which often leads to a large tax bill in April. A voluntary withholding agreement lets the church help the pastor cover both income tax and self-employment tax through payroll.
Don’t Forget: Estimated Tax Payments Are Due April 15
Don’t Forget: Estimated Tax Payments Are Due April 15 April 15 isn’t just the deadline for filing your tax return—it’s also an important date for estimated tax payments. The first estimated tax payment for the 2026 tax year is due on April 15, 2026, for individuals and most calendar‑year entities. If estimated taxes aren’t paid…
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,…
Clergy W-4 Withholding Calculator (2027)
Income tax withholding is voluntary for ministers. If you don’t give your church a Form W-4, or you claim “exempt,” no federal tax is withheld and you’ll need to make quarterly estimated payments. The better option for most ministers: ask your church to withhold enough from each paycheck to cover both your federal income tax…