Is Tithing Before or After Taxes? A Tax Deduction Explainer

This article clarifies how tithing fits into the United States tax system. Many individuals wonder if their religious donations are considered “before-tax” or “after-tax” for income tax purposes. Understanding the rules for charitable contributions can help taxpayers properly account for their tithing when preparing their annual tax returns.

How Charitable Contributions Affect Your Taxes

Tithing, like other charitable contributions, functions as an “after-tax” deduction. This means donations are not subtracted from your gross income before taxes are calculated, unlike pre-tax deductions such as contributions to traditional 401(k) plans. Instead, tithing is part of your itemized deductions, which reduce your adjusted gross income (AGI) to arrive at your taxable income.

To claim a deduction for tithing, taxpayers must elect to itemize deductions on Schedule A (Form 1040) instead of taking the standard deduction. The standard deduction is a fixed dollar amount that varies by filing status and is taken by the majority of taxpayers. If your total itemized deductions, including your tithing, exceed your standard deduction amount, itemizing results in a lower taxable income.

Religious organizations, such as churches, synagogues, mosques, and temples, qualify as public charities under Internal Revenue Code Section 501(c)(3). Contributions made to these qualified organizations are tax-deductible. The Internal Revenue Service (IRS) provides guidelines for what constitutes a qualified organization.

Reporting Your Tithing on Your Tax Return

When you make qualified tithing contributions and choose to itemize, you report these amounts on Schedule A (Form 1040), Itemized Deductions. This form lists various deductible expenses, including medical expenses, state and local taxes, and interest paid. Cash contributions to qualified organizations are reported on line 11 of Schedule A.

Contributions made by check, electronic funds transfer, or credit card are considered cash contributions for tax purposes. Noncash contributions, such as donated property, are reported on a separate line within the same section of Schedule A. After totaling all eligible charitable contributions and other itemized deductions on Schedule A, the total amount is transferred to Form 1040, U.S. Individual Income Tax Return.

Proper record-keeping is necessary to support the amounts reported on Schedule A.

Important Rules for Deducting Religious Donations

To claim a deduction for tithing or other religious donations, taxpayers must meet substantiation requirements established by the IRS. For any cash contribution, regardless of amount, you must maintain a bank record (such as a canceled check or bank statement) or a written communication from the organization. If a single contribution is $250 or more, you must obtain a written acknowledgment from the religious organization.

This written acknowledgment must include the amount of cash contributed, whether the organization provided any goods or services in return for the contribution, and a description and good faith estimate of the value of any such goods or services. A canceled check alone is not sufficient for contributions of $250 or more. The acknowledgment must be obtained by the date you file your tax return or the due date of your return (including extensions), whichever is earlier.

There are limits on how much of your adjusted gross income (AGI) can be deducted as charitable contributions in a single tax year. For cash contributions to public charities, the deduction is limited to 60% of your AGI. Any contributions exceeding this limit can be carried forward and deducted in future tax years for up to five years.

A rule applies to “quid pro quo” contributions, where you receive a benefit in return for your donation. If you receive something of value, such as tickets to a religious concert or a dinner, only the amount of your contribution that exceeds the fair market value of the benefit received is deductible. The religious organization is required to provide a written disclosure statement if a payment of more than $75 is made and a portion is deductible.