Friday | 23 February 2024 | 13 Shabaan 1445

Fatwa Answer

Question ID: 1348 Category: Zakah
Zakat Questions

Assalaam Alaikum WRWB,

I have some queries related to Zakat. I have funds put aside for kids' college tuition in a 529 Plan, they are on 4 kids each of the following ages:

20 Years
17 Years
14 Years
9 Years
Will I have to include those funds in my Zakat Calculator?

My second question is one of my family members needs dental implants for the full mouth and will be $50,000/- can I take that amount from my assets, even though I am not going to get them replaced next month, probably will be 3 months from today's date.

Estimated taxes to IRS:

I have a business from which I get a K1 distribution as part of partnership in the business which is once a year. Every quarter I am required to pay estimated taxes to IRS (Federal) and state taxes. Can I deduct those taxes from my assets even though I must pay them by  April 15th, June 15th, September 15th, and December 15th?

Similarly can I deduct my property taxes which are due by November 15th, 2021 from my assets?

Jazak'Allah Khairan

-Syed A. Quadri

بسم اللہ الرحمن الرحیم

الجواب وباللہ التوفیق

1. If you have deposited this amount as an investment, then Zakat will be obligatory on it according to its current value. But if its value has remained unchanged (neither increased nor decreased), Zakat will be obligatory on the amount that was initially deposited.

2.  Yes, you can set aside the amount of Zakat for the said purpose.

3. You can deduct from the total capital, the amount of tax due till the end of Zakat year. But the amount of tax which will not be due by the end of the Zakat year, shall not be deducted from the total capital.

The taxes due by the specific dates of November 15th or December 15th should also be considered in the same context. If these taxes are due and are paid within the year of Zakat, then the amount of those taxes can be deducted. Following that, the amount in excess of remaining needs and requirements will be liable for Zakat.

However, if the Year of Zakat is completed by the above mentioned dates but the actual payment of taxes is required after  the completion of the Zakat Year, then the amount of those taxes cannot be deducted from the total capital.

فقط واللہ اعلم بالصواب