Schedule C

• Schedule C, which taxpayers attach to Form 1040, is used to report income or loss from a business you operated or, if you are a professional, your office as a sole proprietor. The Internal Revenue Service defines a business as any venture where income or profit is the primary objective of the enterprise. Income derived from a hobby or periodic activity does not qualify as a business, therefore income from such pursuits should appear on Form 1040 or Form 1040NR, Line 21, Other Income. Even if you operate your own business and are required to file Schedule C Form 1040, tithing is not considered a business expense. Tithing is classified as a charitable contribution; therefore you cannot deduct amounts you tithe on Schedule C.
  
  

Schedule A

• You may deduct tithes on Form 1040, but only if you itemize deductions. American wage earners file Schedule A Form 1040 to itemize deductions. You should only itemize deductions if doing so results in a smaller tax liability.
  
  

Charitable Contributions

• Internal Revenue Service rules about charitable contributions cover many organizations. Since tithing is defined as making a pledged contribution to a house of worship, you should adhere to IRS instructions covering qualified charitable organizations and contributions you can deduct. Churches, mosques, synagogues and temples are considered qualified charitable organizations; as such, you can deduct tithes made to them. If a single gift you made is more than $250, you must have a statement from the religious organization to deduct the offering. You do not have to file the statement with your income tax return; keep it for you records in case of an audit. However, if you gave the church $50 a week for a total of $2,600 in a year, treat each offering amount as a separate gift, which in this scenario is less than $250 each, meaning the IRS does not require a statement before you can deduct the gifts. If your tithe was through payroll deduction, the same rules apply.
  
  

Reasons to Itemize

• Your final itemized amount, the figure you transfer to line 40 on Form 1040, depends on a variety of factors. Generally, you will itemize deductions if you made sizable donations to charity; paid interest and taxes on a home; paid significant uninsured medical expenses out of pocket; or had catastrophic losses that insurance did not cover. Itemize by filing Schedule A with Form 1040. Bottom line, if you plan to itemize, make sure the itemization total eclipses the standard deduction.
  
  

Standard Deduction

• If the standard deduction for your filing status is larger that the itemized total you came up with, take the standard deduction. As of the time of publication, the single taxpayer's standard deduction amount stands at $5,700; married filing jointly, $11,400; married filing separately, $5,700 for each spouse; head of household filers, $8,400; and qualifying widow(er), $11,400. Additional deductions may apply if you or your spouse is 65 years of age or older or blind.