Yasir Qadhi – Can I Claim Tax Exemption for My Charity-Ask Shaykh YQ #156
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The speakers discuss the impact of the IRS/RSIC (the revenue revenue service) on individuals and charity, with individuals able to claim $1000 or $300 deduction credits to help them save money. The concession is designed to make people feel like they are part of a larger group and is allowed for religious work and businesses, but not the default. The speakers emphasize the importance of having a market in bizarre places after the birth of Islam, and the negative impact of giving charity to the government and oneself.
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Brother Sha hid from the state of Iowa emails. And he says that, is it allowed to claim your charity as tax deductions in the end of the fiscal year? And if one does so, then does it diminish the reward of the charity?
One
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poverty in the region? No, he him first.
Kidding King?
So this is a very good question. And it deals with
the the notion of so here in America, for those of you that are watching from other countries, here in America, the IRS or the Internal Revenue Service, which is what we pay our taxes to, that it allows any contribution to a registered charity to diminish your taxes up to a certain percentage, right. So if you give, you know, X amount to a registered charity, you can claim that X amount, and you will get y amount credit. And that y amount credit will be deducted from your taxes. So instead of paying $1,000, in taxes, you will pay 1000 minus y. So it'll deduce. So basically, you you you pay, you pay your charity, you give some charity, and you also get some tax deduction bonus, which
will save you some money. So our brother is asking that is this halal in Islam? And number two, if it is halal, does it diminish the reward of the charity given? So? So very good question. And the response is as follows that, let me rephrase the question. Can you do a good deed for the sake of a worldly benefit? Can you do a good deed for the sake of a worldly better? Because in reality, you're paying $1,000 in let's say, is that got and you might get, I mean, you know, depending on your tax bracket, everything you might get 300 $200 basically written off, you know, of that amount in your final in your final, you know, tax amount that you give. So, can you give that $1,000 and intend as
well, that, hey, I'm gonna get you know, two $300 taken off with my taxes, get a double whammy, get a win win situation. The response is that in our religion, we thank Allah subhanho wa Taala, that you are allowed to do a good deed for the sake of a financial benefit as long as you have the intention to please Allah. So the intention to please Allah and the financial benefit is something that is permissible. What is impermissible is the intention to please Allah and the intention to impress another human being. If you combine those two, this constitutes minor shear, and the deed shall be rejected. So if you stand up to pray, and your need is for Allah subhana wa Tada, but
you're seeing the people around you and you want to impress them that I'm praying a good signer, that sila now becomes tainted by showing off and that will be rejected by Allah subhanho wa Taala as a minor ship as a minor ship. So, this is something that is completely not allowed, you give charity and you give $1,000 to the orphanage, but you want to impress the people, the names are being announced. So and so has given and you know, yes, it has given $1,000 Oh, and you feel Yes, that's why I wanted to give I wanted the people to know I gave $1,000 those people who do that, it will be rejected. Our Prophet sallallahu alayhi wa sallam said that Allah subhana wa tada says, I am the
least of all beings who needs to be associated with anyone. So anyone who associates me along with another person, I leave the good deed to that other person, and he can give the reward to that person. So, Allah subhanho wa Taala does not accept any deed that is done with the intention of pleasing another entity other than a lot. However, in the laws, mercy, a law has allowed a good deed that is done with the intention not to please another entity, but to gain financial reward for ourselves. That is a concession given, it's not the default. It is a concession. And there are many, many evidences for this of them is the famous Hadith of the Prophet sallallahu alayhi wa sallam, in
which he says that the most important or the most rightful salary that anybody can get the most
rightful earnings that you can get is for teaching somebody the Quran. So you pay somebody to teach yourself or your child to hold on the prophets. So we're saying that earning it is the most blessed and the most rightful the most important salary is the Quran teacher. Okay. Now the Oregon teacher, is he not doing an action of worship to teach somebody the Quran? Yes. But you see if we stopped paying Quran teachers who would teach our kids we thank Allah that Allah subhana wa tada has allowed religious work to be done for a stipend. But the knee yeah has to be for Allah. And then also Yes, for this type of no problem. And also, for example, Allah says in the Quran,
ladies and gentlemen, that there is no harm upon you for seeking
risk from Allah during the Hajj. Okay, so when you go for Hajj, there is no sin on you, if you want to do a business as well, meaning what? So in those days, the Hydra was a long journey, as you know.
And people would come from all over the world as they still do, you know, in the days of Hajj. And so it's the ideal place to have a market of bizarre. And so what they would do is that, after the days of hedge, they would have a massive bazaar in Minar. And you would have merchants, you know, from Uzbekistan, and merchants from Morocco and merchants from under loosened merchants from Syria and merchants from you know, Yemen, all of them are trading goods and it's the ideal international marketplace in bizarre What better, you know, time and place to do that right after hide you have a whole week or two of bazaars. And Allah subhanho wa Taala says, There is no sin on you. Because
here's the point. Suppose you're a merchant, suppose you're a seller of hides and tans or you're a honey, you know, merchant, and you're going for hedge. Now you tell me, what did it come in your mind, hey, I can take my furs, my skins, my honey, and I can travel all the way to Makkah, and there will be 10s of 1000s of people from around the world. And I can make some money and charge a higher price because back home, this is a dime a dozen. But over there, I'm the only merchant you know from bajada selling this for example, right? I'm the only you know, jewel merchant from from Uzbekistan, I'm the only, you know, Moroccan cheaper or firm. And so he has the intention, I'm going to go for
Hajj and then I'm also going to do a business. Okay, what is to be done now? Is it allowed to go go for Hajj and also do a business and a lot explicitly says in the Quran? There is no sin on you. If you desire money from Allah during the Hajj? No, this isn't the Han Solo Bukhara look it up yourself Surah Baqarah. So based on this dear brother in Islam, there is no sin in giving a charitable donation. And you know full well that you will declare it with the IRS and you will get a tax deduction. And you will therefore gain some benefit, you know, in that regard. Now, so therefore, there's no sin whatsoever. And anybody who says otherwise, frankly, speaking without knowledge to be
gentle here, he's speaking completely without knowledge. Now, the question arises, and you ask this question, does it diminish the reward of the charity? And the response is that that is dependent upon your intention. If your intention is 100%, you know, for that charity that you are doing, and then you declare it and you realize it's a benefit that Allah is giving you, then your reward is 100%. And if your intention is, you know, 8020 or 7030, well, then the reward will be based upon your intention in the most amount of money yet, okay? So there are people, non Muslims, they don't believe in the hero, they don't believe in a higher power and they still give charity for tax
deduction purposes. Clearly, they will have zero reward because they had zero intention, inshallah Muslim can never get to that level. But it is possible that a Muslim primarily gives for the tax deduction purposes. And incidentally, for some reward, therefore, for that person, the rewards will be according to that sincerity that he had. And there are others that the tax deduction is incidental. It's not even something that motivates them. It's not there, it doesn't matter. But they realize if I give you know I can declare it at the end of the year and when the time comes, they just figure out and they calculate and whatnot, and inshallah they will get 100% of the reward, the
claim or the notion of not deducting from your taxes, thinking Allah should reward you. That's not technically correct.
You if you did it for the sake of a loss sincerely, then you shall be rewarded 100% sincerely and to declare it at the end as a tax deduction or whatever.
Not that will not diminish the sincerity as long as you are sincere in the beginning. So I hope that that answers your question and that you do continue to give lots and lots of charity and continue to claim your exemptions from Uncle Sam. And with that in shallow data, we come to the conclusion of today's q&a. Until next time, saramonic mama to lie over a couch