Clergy Tax Facts®
Clergy Estimated Tax Payments
You do not have to make estimated tax payments until you have income on which you will owe the tax. If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. You can pay all your estimated tax at that time, or you can pay it in four installments. If you choose to pay in installments, make your first payment by the due date for the first payment period. Make your remaining installment payments by the due dates for the later periods.
- Payment 1 - April 15
- Payment 2 - June 15
- Payment 3 - September 15
- Payment 4 - January 15
Estimated Tax Payments Instruction and Vouchers
If you had a tax liability for 2007, you may have to pay estimated tax for 2008.
You must make estimated tax payments for 2008 if you expect to owe at least $1,000 in tax for 2008, after subtracting your withholding and credits, and you expect your withholding and credits to be less than the smaller of:
- 90% of the projected tax, or
- 100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.
Estimated tax payments may be paid in four equal installments, due on or before April 15th, June 15th, September 15th and January 15th of the following year.
The last installment (January 15th) can be postponed if the taxpayer files and pays the total tax liability on his/her return by January 31st.
You must attach form 1040-ES with each estimate payment so as to identify your name and social security number when you send money to your Internal Revenue office. The payments may be made by personal check or money order. Remember to write your social security number on your check. Generally, Cash is never used. If the due date falls on Saturday, Sunday, or a legal holiday, there is an automatic extension of time allowed, which is to the next business day.
To avoid the penalty, you are required to pay 90% of your tax liability by the deadline of January 15th of the next year.