Financial Questions

[Tabassum07]

:salam2:

I have two questions, so I'm hoping maybe one of the knowledgeable brothers or sisters would be able to help out.

I recently filed my first US tax return of my life so I had some questions about the halaal-ness of the following:

1. If I qualified for "Earned Income Credit" and "Making Work Pay" and they're giving me money for these two, is it halal money?

2. I gave my zakat and some donations to Islamic Relief USA last year, and they sent me a tax document listing what I'd given in the Fiscal year 2010, so I could use it while filing my tax return. On the tax return form, there are places where you can fill out "Charitable Donations" and that affects your tax. But I was thinking, I did not give zakat or donations for tax purposes, I only did that for the pleasure of Allah SWT. So I left that section of my tax form blank. I mean, why would people want to adjust their taxes based on their zakat? To me, these two things should be kept separate. What do you think about this?

 

[Tabassum07]

:salam2:

Anyone? Maybe someone knows the answer to #1?

 

[Aapa]

Assalaam walaikum,

Sister, first I must write that the whole thing ( IRS crap) is illegal as hell. I will get on my Zionist hat and start to rant and rave. Take the time to find out the history behind this illegal act. Nasty ________

OK..as to the EIC and make work pay..it is ok. You can only claim these if you make under a certain limit. If you read the instructions of the 2010 booklet they list the income limits. Besides it is only a percentage. Think of this we are taxed on food, gasoline, clothing, etc. It is a sin to tax a person on work.

I do not take the zakaat deductions. That I feel is between me and Allah. There was a thread while back and a sister asked the question. The responses were all positive. You can deduct the zakaat.

 

[Tabassum07]

Hm, okay, I understand the view that adjusting your zakat deduction could be viewed okay.

However, the EIC and Making Work Pay credits had me confused because I'm getting back *MORE* money that was taxed. Like, I had only around $500 cut off from my incom as federal tax - but after the EIC and MWP, they're giving me... get this.... $1200! So now I'm still confused, because it's not like they're giving me *my* money back. It's just they're giving me extra money. So would this still be halal?

Jazak Allahu Khayran for answering my questions. These things make my head spin.

 

[Tabassum07]

Okay that makes sense. I will take it as a gift from Allah SWT. Alhamdulillah! Time to go splurge on the nearest online hijab shop....

But on a serious note, I had been concerned whether there was any similarity between the system of interest and the system of EIC. But it looks like there isn't.

Jazak Allahu Khayr, akhi Ayman.

 

[Aapa]

Assalaam walaikum,

No there is no similarity. We are taxed to death. There is no written law about paying income tax.
You have paid the tax ahead of time. This is money owed to you because you have been overcharged for taxes.

Nobody is giving you anything. We have to stop thinking like this. This is money you have given to the government in addition to all the other taxes you pay.

I am glad you started this thread. We have to understand the history of the IRS and realize it is illegal. The laws change. There are going to be new changes as of 2012. Whereas you can claim $1000.00 per child it will be reduced to $500.00. It is goobledey-goop.

There is no law to uphold paying income tax. None. The whole system is unconstitutional. Congress was on vacation when they tried to ratify the 16th Amendment.

What I am saying is we can choose not to have any money deducted from our paychecks. Most do not because they fear the IRS. It is still illegal.

Hey, they can give us a credit after they take the billions for Israel.

 

[Tabassum07]

:salam2:

I understand what you're saying, Aapa, and agree with you. Actually, when I began working, I had chosen "tax exempt" on my W-4 form, because I did not understand what they were asking. My first paycheck came, and they did not deduct the tax. So I got confused and thought maybe I was doing something wrong, and re-sent another W-4 so they started deducting the taxes.

One of my biggest complaints is that they cut so much Social Security and Medicare costs from our income. This is money we may never see again in our lives. Because you know what happened with my father? He worked so so so many years in the US, but because we shifted back and forth between US and India so much, that he was short of the 40 points to claim Social Security by just a few points. And now they tell him they cannot give him anything. That's thousands and thousands of dollars they took away from him over the years!! His money, which they refuse to give him! I have zero hopes that I will ever see the money they are cutting for SSC and Medicare - and they're also raising the age till 70 soon, from 65. Who's living that long???

 

[Aapa]

Assalaam walaikum,

First...claim any deduction you can. Take the time to read the instruction manual. Read the fine print. The system is set up to frustrate us and we give up. Patience will unveil what you can claim. Also, I am constantly calling my friends at the IRS. If I have a question I will call until I have a satisfactory answer.



Second please PM me.

 

[Tabassum07]

Thanks for offering to help, Aapa, but I already filed it last weekend - that's why I made this thread because I used H&R Block's efiling system, and it calculated so much EIC and MWP for me. Actually, I don't have many deductions - I only worked part time last year, so didn't have too much income. JazakAllahu Khair for looking out for me, though.

Yes, I did read the manual in too much detail - my parents actually were telling me to ignore what the EIC was, but I decided to go ahead and calculate it, and it worked, alhamdulillah.