Tithing & Taxes

[Jonathan K]

Wondering what you all thought of claiming tithing as an expense and claiming it on your income tax return? Is it ethical? Is it Biblical?

Thanks for your help in advance.

[clydewolf]

Jonathan K,

I think you meant, "Is claiming tithing as a deduction on our income tax return.....". On our tax returns, Expenses are reserved for business and other forms of investments.

If we qualify for itemizing our deductions, the tax laws allow us to include charitable contributions. Donations/Tithing to our Churches qualifies as a charitable contribution and can be included in our list of itemized deductions. Just as taxes we pay to state and local governments, and a host of other items.

When we do not qualify for itemizing our deductions, the tax laws allow us to use a value based solely on our filing status identified as a "Standard Deduction".

It could be said that someone using the Standard Deduction is claiming a deduction for their Charitable Contributions or their Tithe.

If Itemizing deductions while including a Tithe in that list presents a Biblical or moral problem for a tax payer, the taxpayer could calculate their taxes both ways, using the Standard Deduction and then the Itemized Deduction. The tax payer could then contribute the difference to their Church or other Charity.

[KrozFan]

I list my tithe as a charatible deduction on my taxes. I don't have a moral or biblical problem with it. Give because you want to and take the tax advantages if there are any. Don't give in order to get a tax deduction.

[Gary Barzel]

I agree with KrozFan, and think as long as you are giving for the sake of giving, and not looking for a loophole or a shortcut, then claiming it on your income tax return is ethical.

[ProtectorRoss]

I agree with both of the above posters. We tithe because God tells us to. If the government gives us a rebate for tithing then that is what they choose to do. Just do not try to take advantage of the government as that would be dishonest and wrong.

[4jacks]

For the past 4-5 years (while getting out of debt), I've given very little over and above my tithe. Stuff to good will, donations here and there, etc. But my charitable giving hasn't topped 12% of income. When doing my taxes most of those years, the standard deduction has been mostly higher. I believe one or two years I may have itemized, mainly due to other large itemizable deductions.

That experience leads me to believe that the standard duction assumes the standard person gives about 10% for charitable given, and has a few other misc expenses.

[Driver]

That experience leads me to believe that the standard duction assumes the standard person gives about 10% for charitable given, and has a few other misc expenses.

Sadly enough, not even close. Average giving among Americans is a little over 2% of income. Now I realize that link only has data points from 1987 to 1998 but I seriously doubt giving has gone up significantly considering what the economy has been like in the years since then. It's probably still right around the same 2%.

[4jacks]

Sadly enough, not even close. Average giving among Americans is a little over 2% of income. Now I realize that link only has data points from 1987 to 1998 but I seriously doubt giving has gone up significantly considering what the economy has been like in the years since then. It's probably still right around the same 2%.

Let me clarify.

It appears to me that the IRS includes just over 10% for charitable giving in thier Standard deduction.

(It happened to me again this year, I fell right under the amount to itemize)

I've seen statistic on charitable given that range anywhere from 2-3% I know it low. I'm sure we've discussed it a few times on the forums. So the IRS is doing the average person who donates less than 3% a favor by giving them a standard deduction as if they gave 10%.

[everydaymoneyinfo]

I think this depends on how you view tithing... if you think that by claiming it as a deduction, since you are receiving a "refund" of sorts on your tithe, it may not qualify (in your heart) as a true tithe... there are several solutions to this:

1. Give more depending on your marginal tax rate so that even with the refund, it qualifies (in your heart) as a tithe.
2. Give the entire amount of what the refund would be by including the amount as a charitable donation
3. Stop thinking of a tithe as a strict number or "requirement" but rather give out of the gratitude in your heart no matter the amount. This makes claiming the deduction a moot point as claiming it will not dictate the gratitude with which you give. In the parable of the widow giving the two coins, I believe she was not commended for the massive percentage of income that she gave but for the attitude with which she gave.

[Jonathan K]

Tax season is upon us. Thanks for all your comments. A lot of food for thought. God bless!