How does a Non-salaried, Non-employee Ordained Minister Figure His Estimated Tax Liability

by Kathy Butler
(Corning, AR)

I understand that it is the responsibility of the pastor to figure his own estimated tax liability so that he can send in quarterly payments.

How does he figure this? Is there a tax table to go by? He would include his income from social security and retirement, all love gifts and housing allowances for rent and utilities paid by the church, is that correct? Then take that total and multiply by 15.3% and take that amount and divide it up quarterly.

Is that correct? Is there a worksheet or something that would help him figure it up easier?

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Comments for How does a Non-salaried, Non-employee Ordained Minister Figure His Estimated Tax Liability

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Figuring Tax Liabilities & Estimated Taxes
by: Marcus in Texas

I suggest that you go to the IRS.gov web site and search for information on filing Estimated Quarterly Taxes for Individuals. Search for "Form 1040 ES" which provides excellent and very complete instructions, including how to compute tax liability and also provides the quarterly vouchers needed to include with the checks for the quarterly tax payments. You can also go to the IRS.gov web site to find information on how to handle the housing allowances for ministers, and whether all or any portion of those payments must be reported to the IRS.

I hope this helps.

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