Paying Tithing - self employed

[rwh2596]

Hi,

My husband recently started working under a corporation he has set up for his business. He is not drawing a salary right now, just being reimbursed for his mileage and expenses. He is being reimbursed per mile at a rate of 50.5 cents, which can amount to several hundred dollars right now per week. How do we figure how much tithing we owe? I have been told we don't pay tithing on that mileage reimbursement, but that just feels strange not paying tithing while he is not drawing a salary yet (too early). I know if he pulls dividends he would pay tithing on that amount, but until he starts to do that I feel funny not paying anything tithing. Can anyone out there help us to know how to do this if you are doing it too?

Thanks in advance!!

[Alana]

Is this reimbursement gain or compensation for money that is coming out of his pocket? If this covers meals and gas, I would deduct that from the total and pay tithing on the rest. If I owned my vehicle and knew I wasn't putting that whole amount into my vehicle each week I would pay tithing on what I deemed to be 'extra' from the reimbursement. Of course there is ware and tear to figure in, but be generous with your calculations, even if they are guestimations, to make sure that you are paying an honest tithing.

With my day care I get reimbursed for the food the kids eat. It's an amount per meal, not for how much I pay for the meal, so I do pay tithing on some of that check. I don't pay as much for the food as they reimburse me and I get reimbursed for the meals my kids eat with the day care kids. I see the amount I get paid for my kids as gain, I wouldn't get it other wise and I'd still be paying for them. I don't know exactly how much I spend on food each month, but I do have an idea, so I do a general guesstimate and make sure to be generous with my tithing. Sometimes if there's doubt, I throw in an extra $5 to make sure.

I guess long story short, I would pay tithing on a reimbursement check for my vehicle if I knew that some of that was gain. I would figure out the obvious expenses. A very small amount for wear and tear and go from there.

[BenRaines]

Agree with Alana

Ben Raines

[a-train]

I used to fret over what to tithe due to all the intricacies of accounting for my personal business until I realized that it is better to simply pay tithing each week for the amount equal to my expected annual income divided by 52 (number of weeks in a year). If at the end of the year, I find I was too low or too high, I simply increase or decrease my weekly tithes. There is no looking back and either justifying a time going without tithing or any sudden great sums to pay off tithes previously not paid. This way, I never have to wonder if I've paid my tithing.

It has been a tremendous blessing on me and my family.

-a-train

[rwh2596]

Thank you to everyone who has commented. I am always of the mindset that paying too much or extra cannot ever hurt.

[skylercollins]

I lean towards paying tithing from my gross and not my net. I think they best way to know you're paying the right amount is being mindful how much you have to justify what you're paying to feel good about it. If it's a lot, then it's most likely not enough. And just because he deducts certain expenses for tax purposes (Cesar), doesn't mean he should for tithing.

[lilered]

I agree with all who have commented. Another way to view this is that the IRS allows currently X cents per mile (can be obtasined from IRS) as a legitamate busines write-off. One might view that as the cost allowed to do business, all else would be taxable income, therefore tithing income as well.

I too always have paid on Gross Income.

[Alana]

Originally Posted by lilered

I too always have paid on Gross Income.

If you get a pay check, gross is the way to go. With our businesses I paid tithing on our income after expenses but before taxes.

[skylercollins]

Originally Posted by Alana

If you get a pay check, gross is the way to go. With our businesses I paid tithing on our income after expenses but before taxes.

Well there's company gain and then personal gain. If it's a home-based business and you're writing off personal gain expenses (food, living expenses, etc.) for tax purposes, they're probably not justified write-offs for tithing purposes. Ya'know?

[Alana]

Originally Posted by skylercollins

Well there's company gain and then personal gain. If it's a home-based business and you're writing off personal gain expenses (food, living expenses, etc.) for tax purposes, they're probably not justified write-offs for tithing purposes. Ya'know?

With our first business, we'd buy a locker full of stuff for $300 then sell it and make $1000, so I'd pay tithing on $700.