How does a pastor pay his taxes?
A pastor’s options in paying taxes during the year are:
1. Your treasurer can withhold enough FIT (Federal income tax) to cover both the FIT and Social Security/Medicare taxes.
2. Your treasurer can withhold FIT and you can file Social Security/Medicare taxes quarterly on Form 1040-ES.
3. You can file quarterly on 1040-ES for all taxes.
4. Prepaying your state taxes by withholding or quarterly estimates may also be required.