Below Poverty Pastors

by jessica
(South Carolina)

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!!!

vickey’s reply

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:(

Have any advice or comments for Jessica? Please post your advice or comment by using the "comment" link below. Thank you!

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Clergy Tax Q&A.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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