Pastor G is serving in his first pastoral position. He soon realizes that the church treasurer is not withholding income taxes from his wages, but he is not sure why. The treasurer informs him that churches are not required to withhold taxes from ministers' wages, and that ministers must use the "estimated tax procedure" to pay their taxes. Pastor G is not familiar with this procedure. This issue is addressed in this week's lesson.
Our lesson this week examines the topic of Estimated Taxes. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.
Instructions Click on the correct answer for each of the following questions.
Ministers' compensation is exempt from federal income tax withholding, whether they report their income taxes as employees or as self-employed. Ministers ...