Mormons: Do you tithe on the income you earn before or after taxes?

Question

My Institute teacher said it's basically an unsettled question in the Church. What do you do?

Answer 1

Yeah, there's leeway, but growing up and as an adult, I believe most people pay on the Gross. I don't recall the prophet ever giving specific guidance whether or not to pay before or after taxes. However, the more I read, I think our leaders are implicitly saying pay on the gross.

Farmers were told to pay 1/10 of their crop before anything else. That would translate to the gross. The Gross is what you're paid, and you're benefitting from those funds.

Here's an excerpt from an October '06 conference talk I found from Elder Daniel L. Johnson

" I invite you to pay your tithing to the Lord first, before you meet any other financial obligations. I invite you to put your trust in the Lord and, as He Himself said, “Prove me now herewith.”10 As you do so and as you place your tithing obligation to the Lord as the first priority of all of your other financial obligations, you will indeed become a witness to the matchless power of the Lord as He opens the windows of heaven and pours out a blessing “that there shall not be room enough to receive it.”
To those of youI bear you my own personal witness of the law of tithing and of the reality of the promises that the Lord has given regarding this law. I know from personal experience that the blessings do indeed come, and for that I am most grateful. In the name of Jesus Christ, amen.

Answer 2

1/10th of your interest annually. I have interpreted that on being the gross taxable income. So I pay on the before tax amount, that way, when the tax return comes in, I don't have to tithe on that because I already did before I received it. You can tithe the after tax amount and then tithe on the return when you get it. There is an ambiguous figure that then drops through the cracks, the contribution from your employer that is an indirect benefit to you, considered taxable by the IRS, but never delivered to you until you actually use it, for health reasons or retirement, etc.
That is why I try to tithe on the taxable amount. The IRS considers it income, so I consider it an increase to be tithed.

Answer 3

you're right, it is an ongoing question. But why should the church tell us, they don't control our choices and this is one of many areas that falls into "what ever feels right for you".

Some pay gross and any tax returns are already tithed. some pay gross just because that's the actual rate you're getting payed. Others pay net and pay again on tax returns, and only pay what they have actually earned.

When it comes down to it there is no right or wrong way to it, as long is it is done and "honest".

Answer 4

It is 10% of my increase. That could be more or less than the some percentage of my income.

I have it directly from an IRS employee that the majority of members that tithe pay on gross. Since a high deduction for charity is a red flag, this is an established criteria.

Answer 5

I tithe, like my parents, after taxes. Then when my tax return comes in I tithe that money as well. It's the best settlement, and the prophet has said that it's AFTER taxes. Because that's how much money you are physical recieving.

Answer 6

I am not a mormon, but I tithe on income before taxes.

Answer 7

I don't know about Mormons, but Baptists pay 10% tithe on all income after taxes, entertainment and gambling.

Answer 8

My thought is that taxes are like rent, utilities, and other bills. I receive benefits for paying for them (not directly related but still) so I pay tithing on my gross income.

Answer 9

I tithe on my net and then extra when it is time for a tax return. Our bishopric says it is up to us and what we feel is a full and honest tithe.

Answer 10

The church councils to pay a tithe or 10% of our income.

I like the following statement.

If you pay on your Gross, then you will recieve Gross blessings. If you pay on Net, you will recieve Net blessings