Question: Church Offering (tithe), is it tax deductible?

[DrPizza]

Originally posted by: Vic

Originally posted by: JulesMaximus
Only if you itemize your deductions. If you take the standard deduction then you can't deduct tithings.

Well... if you only take the standard deduction then NOTHING else is deductible 🙂

If you take the standard deduction and you're a teacher, you can still deduct 250 in expenses. You can still deduct post-secondary educational expenses, etc.

 

[JulesMaximus]

Originally posted by: DrPizza

Originally posted by: Vic

Originally posted by: JulesMaximus
Only if you itemize your deductions. If you take the standard deduction then you can't deduct tithings.

Well... if you only take the standard deduction then NOTHING else is deductible 🙂

If you take the standard deduction and you're a teacher, you can still deduct 250 in expenses. You can still deduct post-secondary educational expenses, etc.

Yes, I forgot about that exception to the rule. I don't think I ever got any teachers when I was doing taxes though. I don't remember all the rules and some of them may have changed.

 

[kranky]

Originally posted by: JulesMaximus
Still, a $500 charitable contribution might lower your tax by only a buck or two.

You used to do taxes? A $500 deductible contribution by someone who already has enough deductions to itemize is going to save them $500*(marginal tax rate).

Example: Single, with taxable income of $29,050-$70,349 would be the 15% bracket, so that contribution would save $75 in federal tax.

 

[WayneTeK]

Originally posted by: kranky

Originally posted by: JulesMaximus
Still, a $500 charitable contribution might lower your tax by only a buck or two.

You used to do taxes? A $500 deductible contribution by someone who already has enough deductions to itemize is going to save them $500*(marginal tax rate).

Example: Single, with taxable income of $29,050-$70,349 would be the 15% bracket, so that contribution would save $75 in federal tax.

so the more you make money, the higher tax bracket you would have, correct? so let's say 100,000 of taxable income would be 20% bracket?

I'm trying to figure out how taxes are done for tax deductions.. like is it

[Yearly income - expenses (tax deductible stuff)] * TAX = how much you pay in taxes?

 

[tikwanleap]

Originally posted by: Pepsi90919
just stick out your left hand and it will be all good

agreed. 😛 😀

 

[kranky]

Originally posted by: WayneTeK

so the more you make money, the higher tax bracket you would have, correct? so let's say 100,000 of taxable income would be 20% bracket?

I'm trying to figure out how taxes are done for tax deductions.. like is it

[Yearly income - expenses (tax deductible stuff)] * TAX = how much you pay in taxes?

Not exactly. You don't pay the same percentage on all your taxable income.

First, remember that taxable income doesn't mean your total income. You subtract your exemptions and either the standard deduction or the total of your itemized deductions (plus some other possible adjustments) in order to arrive at your taxable income.

For 2004 taxes, if you are single,
You pay 10% in tax on the taxable income under $7,150
You also pay 15% in tax on the taxable income between $7,150 and $29,050
You also pay 25% in tax on the taxable income between $29,051 and $70,350
You also pay 28% in tax on the taxable income between $70,351 and $146,750

Above that are the 33% and 35% rates. These are called the tax brackets.

If you are in the 25% bracket, then every $1 in additional deductions will save you 25 cents in tax.

 

[orakle]

Does anyone else think giving 10% of your income to the church is ludicrous?

 

[QuitBanningMe]

Originally posted by: orakle22
Does anyone else think giving 10% of your income to the church is ludicrous?

Yes. The church is within you.

 

[DAGTA]

Originally posted by: orakle22
Does anyone else think giving 10% of your income to the church is ludicrous?

What one person considers a waste of money is money well spent to another.

Some people consider spending $500 on a video card ludicrous. Some people consider putting thousands of dollars into a car stereo ludicrous. To each their own.

 

[skywhr]

you can claim it if you itemize,
no its not a sin to do so

 

[orakle]

Originally posted by: DAGTA

Originally posted by: orakle22
Does anyone else think giving 10% of your income to the church is ludicrous?

What one person considers a waste of money is money well spent to another.

Some people consider spending $500 on a video card ludicrous. Some people consider putting thousands of dollars into a car stereo ludicrous. To each their own.

Both of those things are insane. Nobody needs a $500 video card, or an expensive car stereo. I just think the cash would be better spent on something useful, like a house, or any other sort of investment. Lets say an avid church-goer brings home ~$40,000 after taxes. That's $4,000 a year squandered - If I was the priest/minister/whatever I'd be laughing pretty hard at these people.

 

[Yo Ma Ma]

Is the 10% tithe based on pre- or post-tax income?

 

[Lenine]

Originally posted by: orakle22

Originally posted by: DAGTA

Originally posted by: orakle22
Does anyone else think giving 10% of your income to the church is ludicrous?

What one person considers a waste of money is money well spent to another.

Some people consider spending $500 on a video card ludicrous. Some people consider putting thousands of dollars into a car stereo ludicrous. To each their own.

Both of those things are insane. Nobody needs a $500 video card, or an expensive car stereo. I just think the cash would be better spent on something useful, like a house, or any other sort of investment. Lets say an avid church-goer brings home ~$40,000 after taxes. That's $4,000 a year squandered - If I was the priest/minister/whatever I'd be laughing pretty hard at these people.

Donating money to charity is squandering? Mind you, it's not all for charity but a good deal of it is.

 

[Ronstang]

Originally posted by: Skoorb
The only sin is that people have such a poor grasp of taxation that some actually think they are SAVING money by giving it away. Unless you have peculiar circumstances, like you make so much money that your capital gains tax is greatly lessened by lowering your tax bracket one year or something, then you're still ultimately LOSING money when you give it to a charity.

BINGO...you basically said what I was going to so I will read no further. Tithing is nothing more than religious blackmail for the most part and they don't look upon you using it as a tax deduction as a sin, that would be kind of hypocritical wouldn't it? Oh crap, the church is all about hypocrisy is it not....sorry that is not what this thread is about, I will stop.