Most ministers are required to pay quarterly estimated taxes if you have fourth-quarter income, get them postmarked by January 16, 2018, tax deadline.

Generally, the Internal Revenue Service (IRS) requires you to make quarterly estimated tax payments for the calendar year 2017 if any of the following apply:

  • you expect to owe at least $1,000 in federal tax for 2017, after subtracting federal tax withholding and refundable credits, and
    you expect federal withholding and refundable credits to be less than the smaller of:
  • 90% of the tax to be shown on your 2017 federal tax return, or
  • 100% of the tax shown on your 2016 federal tax return (only applies if your 2016 tax return covered 12 months – otherwise refer to 90% rule above only).

You do not have to make the estimated payment on January 16, 2018, if you file your 2017 tax return by January 31, 2018, and pay the entire balance due with your return.

Generally, if you do not pay enough tax in a timely manner either through withholding or making estimated tax payments, you may be required to pay a penalty.

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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

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