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How Should AME Church Pastors Pay Their Taxes

September 15, 2018

As an AME Church pastor, your wages are exempt from federal income tax withholding.  This means your local AME Church does not have to withhold income taxes from your paycheck.  And since AME Church pastors are self-employed for Social Security concerning their ministerial services, your local AME Church does not withhold the employee's share of Social Security and Medicare taxes from your paycheck either.  As an AME Church pastor, you must prepay your income taxes and self-employment taxes using the estimated tax payment procedures, unless you have entered into a voluntary withholding arrangement with your local AME Church.  Your estimated taxes must be paid in quarterly installments.  If your estimated taxes for the current year are less than your actual taxes, you may have to pay an underpayment penalty.  You can amend your estimated tax payments during the year if your circumstances change.  For example, if your income or deductions increase unexpectedly, you should re-figure your estimated tax liability for the year and amend your remaining quarterly payments accordingly.

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