WebJun 18, 2024 · Tax-exemption works by reducing one’s tax liability. Say, one has an income of $100,000, it’s not unreasonable to think they’d have to pay tax on that income. Assuming the all-in tax rate is 25%, the individual or business would need to pay $25,000 in taxes to the federal, state, and local government. WebDec 18, 2014 · Instead, clergy can pay income taxes in quarterly installments throughout the year. If you make arrangements with your church, you can elect voluntary withholding. If that is the case, the church should withhold income taxes only (not Social Security taxes, which you must pay quarterly throughout the year).
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