Is it OK to take tax deductions from your contributions?

[Jeremy Ivens]

I think I would just feel bad for doing it, though I don't judge anybody who does. What is your take on it? Specifically on donations to ministries and charity.

 

[puritanpilgrim]

why give the government any money you don't have to give them?

 

[Pergamum]

You should feel worse for not doing it and giving the gubbermint a bigger cut of your dough.

 

[Ed Walsh]

I think I would just feel bad for doing it

If we get a new president that lowers your payroll taxes, will you feel bad and send the money you could have saved to the IRS?
Do you now own a house or hope to someday? Will you forgo the tax deductions the government allows you for your mortgage interest? Will you send this deductible amount to the IRS?

Just some questions...

 

[DMcFadden]

I render to Caesar ALL that the law requires (an accountant friend told me that I'm a little too literal in my reading of the law), but I CHEERFULLY deduct EVERY penny allowed from my housing, mortgage interest, student loan interest for my last child, charitable contributions, and legitimate business expenses.

When the law changes, my obligations under the law may require a different set of actions. But, so far, so good.

 

[Frosty]

I think I would just feel bad for doing it

Don't.

What Pergamum said.

 

[bookslover]

I'm a little confused about that federal law regarding this. My tax guy says I can't deduct my church giving unless I give something like a minimum of $250 in a lump sum, which I certainly can't afford to do (I give a little steadily each month). On the other hand, a friend of mine who gives pretty much like I do says he deducts his every year with no problem.

So, which is it? Who's lying? LOL

 

[Ed Walsh]

My tax guy says I can't deduct my church giving unless I give something like a minimum of $250 in a lump sum

I'm sure this is not true.

Updated for Tax Year 2015 - From TurboTax Website: https://goo.gl/typfya For more information.

OVERVIEW:
When you prepare your federal tax return, the IRS allows you to deduct the donations you make to churches. If your church operates solely for religious and educational purposes, your donation will qualify for the tax deduction. As long as you itemize your deductions, you can generally claim 100 percent of your church donations as a deduction. Note: (added by me) Not all Taxpayers benefit from itemizing their deductions.

Itemized deduction requirement:
The donations you make to your church throughout the year can be deducted from your taxes only if you itemize your expenses on Schedule A when you file your personal tax return. To use Schedule A, your total itemized deductions must exceed the standard deduction for your filing status. If the standard deduction provides a greater tax benefit, your church donations won't offer any additional tax savings. However, you can deduct those donations in any of the next five tax years that you choose to itemize deductions.

Limitations on annual church donations:
The total of your church donations plus all other charitable contributions you make during the year cannot exceed 50 percent of your adjusted gross income (AGI). If it does, then you cannot deduct 100 percent of your donations in the current tax year. However, the amounts you can't deduct this year can be used as a deduction on one of your next five tax returns.

 

[Edward]

My tax guy says I can't deduct my church giving unless I give something like a minimum of $250 in a lump sum,

Get a new tax guy. Unless he's saying that your total giving over the year isn't sufficient to beat the standard deduction (which isn't what you said here), he's wrong. Make sure that you can document your giving - either by check or a statement from the church based on cash donations in marked envelopes (or, now, electronic giving).

But the statement as made doesn't make sense.

 

[Jack K]

I think I would just feel bad for doing it, though I don't judge anybody who does. What is your take on it? Specifically on donations to ministries and charity.

It might help if you explained further why you feel bad about taking the deduction.

I will say this: When government acts sensibly (granted, not always the case), tax policy supposedly reveals what behaviors the government wishes to encourage, as there's a benefit to everyone in society when individuals are encouraged toward those behaviors. For example, it is believed that all of society benefits when clean energy is used, when children are provided for, when families save or invest in housing, etc. This is why there are tax breaks for such things. So if the government has decided (as evidenced by tax policy) that giving to churches and missions is an activity that benefits society, why would I want to disagree or act like I think otherwise?

I say take the deductions. Who knows how long they will last if our policymakers start to believe that churches are a burden rather than a benefit to society? Tax policy already disfavors marriage, and the time may come when it disfavors churches.

 

[MCM180]

I think I would just feel bad for doing it, though I don't judge anybody who does. What is your take on it? Specifically on donations to ministries and charity.

I can think of two good reasons you might feel bad about this.

If you feel bad because the tax savings reduce the cost to you and you don't want to give what costs you little (like David in 2 Sam 24), why not take the tax savings and donate that money too? That keeps the total cost to you constant. (You can get into an infinite loop of counteracting the now-larger tax benefit with a larger donation ad infinitum...)

I suppose another reason you might feel bad is that by taking the deduction, you're implicitly making the rest of the taxpayers in the U.S. subsidize your giving. Not very much, but non-zero. If that's your reasoning (which strikes me as a VERY consistent libertarianism) then don't take the deduction.

But, I don't see any general Biblical reason why we ought to render unto Caesar more than he requesteth.

(There may be other good reasons. I don't mean to imply there aren't. I just can't think of any.)

 

[GulfCoast Presbyterian]

I render unto Caesar what is Caesar's property. If Caesar says "you may chose to deduct from my property what you give the Church, for in that case it is not my property," then Caesar is happy, and I am happy.