Although you know what your 2016 tax bill came to, you probably don’t quite know what your 2017 tax will be. While it can’t be predicted with absolute certainty, you may want to review your financial picture thus far, as well as on events you anticipate will occur and transactions you anticipate finalizing in the balance of this year. It would be a good idea to see how your projected income and estimated payments are tracking and make any necessary adjustments to your wage withholding and/or estimated tax payments.
In general, one-quarter of your required annual payment must be paid by April 2017, June 2017, September 2017 and January 2018. Keep in mind that tax withheld from your salary is treated as an estimated tax payment, and that an equal part of withheld tax generally is treated as paid on each installment date.
If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax
During 2017, to avoid the underpayment penalty, you must prepay the smaller of (1) 90% of the tax for the current year, or (2) 100% of the tax shown on the return for the prior year, whichever is smaller.
Is this your first clergy position? Has your position changed? Are you moving? Is there a change in your compensation. Let us calculate your estimated payments or optional withholdings . This service will ensure that your tax liabilities are paid on time and no surprises at the end of the year.< Back
Clergy Financial Resources’ National Tax Office serves as a resource for clients to help analyze complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends through 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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