Pastors’ taxes can be confusing. Don’t let an appointment change cause you to underpay your taxes. Pastors are responsible for paying their federal and state income taxes. Churches vary on how they help or not help pastors with this. One of the first questions a pastor should ask in a new appointment is, “Does this church help their pastor pay estimated income tax and SECA?”
A church is not required to withhold taxes from a pastor’s pay, unlike any other employee of the church. They MAY withhold these taxes and send them to the IRS/Department of Revenue, but they are not required to. If the church does not withhold the taxes, the pastor must send estimated tax payments on April 15, June 15, September 15 and January 15.
If you have questions on pastor taxes, call Chris Bouchard at (573) 268-4440.
The Clergy & Church Financial Ministry (C2FM) is an initiative created out of a partnership between the Missouri United Methodist Foundation and the Lilly Endowment, Inc.