Pastors with secular jobs.
by Oral Walters
(Coral Springs, FL)
I am a fulltime pastor as well as a fulltime employee for a non-religious company.
My income is taxed and withheld in the non-religious company, is it necessary for the church also to withhold federal income taxes from the salary that I receive from the church?
See my clergy tax page.
"Churches cannot withhold taxes from ministers' pay without the minister's authorization. Ministers are exempt from income tax withholding whether they report their income taxes as employees or self-employed; ministers who report their income taxes as an employee can request voluntary withholding by submitting a Form W-4 to the church."
However, that does not mean you are exempt from income tax and in fact are taxed even more because you have to pay self-employment taxes as well, so you may want to consider requesting your church to withhold income taxes on you or you can also send in estimated tax payments.
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