Does Tithing at Church Count as a Charitable Donation?

by OrphanCrow 15 Replies latest watchtower beliefs

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  OrphanCrow

  It has been interesting to see the shift in financial strategies that the WTS is implementing recently. From reading recent threads, it appears like 'They' are adopting a tithing donation system, similar to what is practised in "those wicked churches of Christendoom".

  I am curious as to who it is that stands to benefit the most tax wise in this recent shift. Whether it is the WTs themselves, or if this new arrangement will benefit some of the well-heeled JWs who flutter around in the shadows of the wings of the Great Ones.

  Personally, I abhor tax law, and get angry whenever I am forced to wade through it. However, it is a necessary evil at times.

  From the article Does Tithing at Church Count as a Charitable Donation?:

  Federal law allows you to enjoy a tax break in the form of a deduction for charitable contributions, including donations of goods or money. You can claim the deduction for one-time donations or if you regularly tithe part of your income to your church. The Internal Revenue Service has specific rules governing deductions for charitable donations and you need to understand how they work in order to maximize your potential tax benefit.

  With the new arrangements in how money is to be 'donated' to the WTS, does that mean that the Kingdom Halls will have to be responsible for handing out tax receipts? Or, do they do that already?

  Does anyone on this forum claim tax deductions for the money they send to the WTS? Or for donated goods and services?

  
  
  
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  JeffT

  Although not an income tax expert, I am an accountant, and have dealt with other tax issues.

  Generally, anything you give a charity counts is a tax deductible contribution. The church is not obligated to give out receipts, it is the obligation of the giver to keep track of the donations and have available proof of the donation. Unless they have good reason not to accept it, the IRS will treat any written record as proof, in other words a handwritten notation on a calendar that you gave $15 last Sunday will do.

  Interesting sidebar: those green handshakes to the CO are not deductible by the giver and ARE taxable income to the recipient. Of course, who's going to prove that?
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  prologos

  one of the reasons Mitt Romney refused to divulge his charitable Mormon donations in the US presidential election campaign. tell will show and ambaras.
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  OrphanCrow

  Thanks for the information, JeffT.

  Interesting sidebar: those green handshakes to the CO are not deductible by the giver and ARE taxable income to the recipient. Of course, who's going to prove that?

  Interesting. I had always thought that there was a 'gift' category that those handshakes fell under.
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  rebelfighter

  The organization should be issuing statements at the end of the year if you are donating in excess of $75.00. If you are audited they will ask for these statements. The amount deductible per year is based on your income verses the amount that you contribute per year. There are limitations as to how much total contributions that you can have in a single year -- the good news is if your contributions exceed the limitations you may carryover the excess into the next year (I know this from experience -- a couple of times).

  http://www.irs.gov/publications/p526/ar02.html#en_US_2014_publink1000229790

  Please note that to be deductible the organization has to be a qualified charitable organization!!!
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  RubaDub

  The church is not obligated to give out receipts, it is the obligation of the giver to keep track of the donations and have available proof of the donation.

  JeffT

  Absolutely not true. A non-profit is required to issue a receipt to the donor for individual contributions for $250 or more. It must also include language that no goods or services were received.

  They do this all the time at assemblies. You just need to request the receipt.

  Rub a Dub
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  rebelfighter

  RubbaDub, Unless I am reading it incorrectly, I believe the limit has been lowered, according to the IRS publication attached above an organization has to issue statements starting at $75.00 annually.
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  JeffT

  They can't issue a receipt if they don't know who to give it to. I can throw $500 onto a plate when they pass it, and I won't get a receipt. But I can still deduct it. Proving that I gave it is a different problem.
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  rebelfighter

  JeffT,

  In a prior post I provided a link to the IRS publication covering cash contributions. You obviously have not been audited. You might want to review this document, as a little help you might want to look for this paragraph:

  Contributions of $250 or More

  You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records.

  If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions.

  The reason I point this out is that I know for a fact I have had to track down these receipts every year when filing my tax return. Now I make sure I get the receipts within 30 days of making the donations, makes tax preparation time a little easier.
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  OrphanCrow

  From the article linked to in OP:

  Qualifying Organizations
  You can deduct cash contributions or tithes as long as they're made to a qualifying organization. Section 170 of the Internal Revenue Code specifies several categories of qualifying organizations. The IRS permits deductions for charitable contributions to religious organizations, including churches, a convention or association of churches, temples, mosques, synagogues and other religious organizations. Generally, a church or other religious organization must obtain 501(c)(3) status to qualify as a charitable organization. If you're not sure whether your church or religious organization qualifies, you can visit the IRS website to check an organization's tax-exempt status.
  Claiming the Deduction
  To claim tithes or church giving on your taxes, you must itemize your deductions using Schedule A and attach this to your 1040 tax form. You cannot deduct any tithes or non-cash donations if you choose the standard deduction. Depending on the amount of your tithes, taking the standard deduction may benefit you more than itemizing. If you plan to deduct more than $250 in tithes, you must obtain an official document from the church attesting to the amount of donations you've made throughout the year. If you tithe by check, you should also keep copies of your bank records in case you become the target of an IRS audit.
  Deduction Limits
  The IRS imposes a limit on the amount of tithes you can deduct each year. According to IRS Publication 526, the maximum amount of charitable contributions, including tithes, that you can deduct is an amount equal to 50 percent of your adjusted gross income. If, for some reason, you've tithed more than 50 percent of your adjusted gross income to the church in any one year, the IRS allows you to carry over the deduction to future tax years. The IRS allows you to use carry-over deductions for up to five years following the initial charitable contribution.
  Non-cash Donations
  In addition to deducting tithes, you may be able to deduct the value of any goods or property you donate to the church. The deduction limits and filing rules are the same for non-cash contributions but additional paperwork is required if the value of your donations exceeds $500. In addition to Schedule A, you must complete Form 8283 and attach it to your tax return. You must provide a description of each item donated along with an estimate of its fair market value. If you donate an individual item worth $5,000 or more, you must have the item professionally appraised to verify its value.