Tithing Question.....

[xoomer]

I have heard that tithing is tax deductible... and I was wondering if that was true.....

and if so I should probably be saving the pieces of paper, and do I write the check out to god?? or the the Church of Latter day saints? what?

[Bob_Blaylock]

I have heard that tithing is tax deductible... and I was wondering if that was true.....

Why are you asking us? You would certainly know, better than any of us what you did or did not hear. I do not know if it is true that you heard that tithing is tax deductible.

[xoomer]

I am asking because I'm new to the church and I feel stupid asking questions like this of the elders or the bishopric...

[Bob_Blaylock]

I am asking because I'm new to the church and I feel stupid asking questions like this of the elders or the bishopric...

The most stupid question of all is the one that you don't ask, because you're afraid you'll feel stupid for asking it.

[deadinside]

Yes it is tax deductible. Comes right off the top so if you are taxed at 25% you will get back 25% of what you paid more than likely unless other factors are involved. At the end of the year in December, you will likely be invited to sit with the bishop in a tithing settlement. He will have a paper with all that you have paid to date. That form is what you will keep for your taxes unless you pay something else after that tithing settlement and they will usually give you an updated for in that case.

[Winnie G]

you can find tithing slips and envelopes by the church office door.

At the end of the year you will be given the paper work for your taxes.

[talisyn]

That's a pretty good question, xoomer. It is tax deductible if you're itemizing.

Welcome to the fold

Save your yellow slips for end of the year comparison to what's on record and don't make the checks out to God...umm idk who you make it out to, I usually use cash

[Seanette]

I've always been told a check should be written to the ward you're in.

[Palerider]

at the end of the year you will be given a paper with all your tithes and offerings on it for the purpose of using it for your taxes.

[Wingnut]

Seanette is correct. Checks should be made out to the ward or branch in which you reside. I'm pretty sure that information is printed on the tithing slip as well, though I'm not 100% certain of that.

At the end of every year, each member meets with the Bishop to declare their tithe-paying status: full, partial, non-, or exempt. You may want to retain your tithing slips to be able to verify that you have paid a full tithe prior to going for this quick meeting. In January, the finance clerk usually prints out charitable donations summaries for everyone, for tax purposes. Even if your ward clerk doesn't automatically do this, he'll do it if you just ask. That summary will include tithing, fast offerings, and any other donations you may have made to the Church during the previous year. Here is also where it might be beneficial to hold onto your own slips, just for verification.

[Hemidakota]

I am asking because I'm new to the church and I feel stupid asking questions like this of the elders or the bishopric...

Your tithing is a tax deduction. Ensure you keep the tithing receipts for the IRS. Even granting personal loans to your family members is a tax deduction.

[Traveler]

There are a number of ways you can take advantage of your contributions to the Church (beyond tithing) especially if you itemize your deductions on your tax return. For example if you have a calling you can deduct millage on your car when you are using your car in connection to donating service. When I was a scout master I deducted all my camping and other scouting equipment I purchased.

If your house hold makes over 60 to 80 thousand a year, you should consider getting a good tax accountant to assist you in minimizing your tax liability. If you own your own business – you may want to investigate opportunities of using your business to make donations and provide pre-tax benefits as another possibility. I once considered writing a pamphlet titled “Tithing Strategies for the Rich” but decided it may create too much animosity, misunderstanding and undesired attention.

The Traveler

[Vort]

Yes it is tax deductible. Comes right off the top so if you are taxed at 25% you will get back 25% of what you paid more than likely unless other factors are involved.

This is incorrect. Tithing is tax deductible, but is not a tax credit.

For example, suppose you earn $50,000 this year, pay $5,000 in tithing and $10,000 in taxes (20% tax rate). When you file your taxes next April, if you didn't claim any tax deductions we'll assume you would not get any tax return or owe any taxes.

In this situation, if you claim your tithing as a tax deduction, you will not receive a credit of $5,000 on your income taxes paid because of your tithing. Rather, your taxable income will be reduced $5,000, from $50,000 to $45,000.

If you are taxed at 20%, that means you will owe $45,000 x 0.20 = $9,000 in taxes. Since you paid $10,000, you will get $1,000 back, not $5,000.

Hope that helps.

[Moksha]

Might be wise to write F/O at the bottom of the check - if you ever envision dealing with IRS agents.

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Wonder how it would work if we could use our credit card or pay through the ward's internet site?

[miztrniceguy]

I would advise anyone seeking tax advice to speak to a professional tax preparer, rather than asking someone you don't know what to do in a situation that can have serious legal ramifications.

I'm not saying anyone has given wrong advice. After all, if it's on the internet it must be true, right?

[john doe]

In the US, tithing can currently be counted as a charitable contribution if you itemize your deductions. You should receive a statement from your ward at the end of the year stating exactly how much you contributed, and you can use that as your paperwork. Since sometimes mistakes are made in crediting the correct person, it's also a good idea to save your receipt and compare it to the statement at the end of the year. If there are discrepancies, you should bring them to the attention of a member of your bishopric.

[eternalpromise516]

this has been an interesting and somewhat valuable thread to peruse, especially being a new member myself. i've already been able to calculate what the cost of two meals i'll be fasting from, based on my family's last grocerty bill, so i'm enthused that i have been able to do that much.

however, i've gotten mixed information regarding my tithing as a student. i have no source of income right now, and probably won't for some time, unless a small on-campus job would become available to me. since i have no job, how should i handle my tithing? would i be classified as being exempt, which i highly doubt so? i plan to tithe out any spare change, etc. i pick up around the house, in my car, etc. so i can at least have SOMETHING. this is probably the only thing that i don't fully understand and have sorted out yet. thanks guys!

-EP

[Dravin]

EP, if you have no increase (which is kinda my situation at the moment) and 10% of 0 is 0 and that's what you pay you are a full tithe payer.

[bytebear]

this has been an interesting and somewhat valuable thread to peruse, especially being a new member myself. i've already been able to calculate what the cost of two meals i'll be fasting from, based on my family's last grocerty bill, so i'm enthused that i have been able to do that much.

however, i've gotten mixed information regarding my tithing as a student. i have no source of income right now, and probably won't for some time, unless a small on-campus job would become available to me. since i have no job, how should i handle my tithing? would i be classified as being exempt, which i highly doubt so? i plan to tithe out any spare change, etc. i pick up around the house, in my car, etc. so i can at least have SOMETHING. this is probably the only thing that i don't fully understand and have sorted out yet. thanks guys!

-EP

You may very well be exempt, if you are not having an "increase" then you pay no tithing. Missionaries, for example do not pay tithing because they are not being paid for their services. If you have a part time job, or even if you get a birthday check from grandma, those are increases and should be tithed. Although some see that as extreme. When you are making 70k a year and you are tithing a $20 check, it seems a little nit picky. But for you, right now, it may not be. As to loose change, technically you were the one who lost the change in the first place, so it's not really an increase, but rather a return of a loss. So, I wouldn't worry about it. You don't need to double tithe, just because you found money that you had hidden away somewhere. And you don't need to back tithe. Just do your best going forward.

[eternalpromise516]

ok. thanks to both bytebear and dravin. you essentially confirmed what i already had tossing around in the back of my mind, but i just wanted to make sure