My husband and I are young, 22yrs old. Our church is very small and his salary is too. He makes $325 wk.
Since we make so little, our church doesn’t take out taxes. We are new to the tax process for Clergy. We haven’t paid anything this year for taxes.
We are worried that we will have a large sum to pay at the end of the year. We also have a child due Christmas day, our first. We need some kind of help or advice as what to do. We don’t get insurance or have any kind of allowance. I’m on Medicaid and soon will have to have food stamps once the baby comes. PLEASE HELP!!!
First of all, take a deep breath and repeat after me...everything will be alright:-)
You probably will not owe any income tax with the addition of the new baby (Congratulations!); however, you will owe self-employment tax (social security). So you may need to consult a tax professional and see if you need to make some estimated tax payments.
With the child tax credit and earned income credit you will probably not owe anything and will probably get a refund, but take in consideration that babies are notoriously late and may not make his/her appearance until the next year...which would result in a higher tax bill:(
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