Tithing on a Tax Refund or Bonus

"A fortune made quickly will dwindle away, but whoever gathers little by little will increase it." — Proverbs 13:11, NIV

You receive a $3,000 tax refund. Or your company awards a surprise $5,000 bonus. Suddenly, money you weren't counting on appears in your account. The natural instinct is excitement followed by planning: How will I spend this? Where will it go?

A spiritual instinct might follow: Should I tithe on this windfall?

The answer isn't obvious, and it matters more than it might seem. How you handle unexpected money reveals your posture toward God's provision and tests whether generosity is genuine.

Understanding What These Windfalls Are

Tax Refund: Getting Your Money Back

A tax refund isn't new income. It's your own money, withheld too much by your employer during the year. You've essentially given the government an interest-free loan.

Example: Your W-4 is set to withhold $500/month ($6,000/year). Your actual tax liability is only $4,800. You've overpaid by $1,200. The refund is restitution of what was already yours.

Biblically, a tax refund is more like recovering something than receiving something new. You're getting back money that was already counted as income (and already tithed on if you tithe on gross).

Bonus: Genuine Increase

A bonus is different. It's money above your base salary—genuine increase. Whether it's a performance bonus, holiday bonus, or signing bonus for a new job, it represents additional compensation you earned.

The bonus is true increase in the biblical sense. You didn't have this money before; now you do, because of your work and the company's decision to reward it.

The Case for Tithing on a Refund

Despite being returned funds, some argue you should tithe on your tax refund:

Argument 1: It's increase relative to your normal spending Your regular monthly budget doesn't account for the refund. It's a surplus beyond your normal income stream. You can afford to give 10% without adjusting your necessities.

Argument 2: It tests your faith Using the refund as an opportunity to give stretches your generosity. You're proving that unexpected blessings don't automatically become personal spending.

Argument 3: It's part of your annual increase Over the year, your gross income includes the amount refunded. In a sense, you're retroactively adjusting your tithe to account for it.

Weakness: You likely already tithed on the income that produced the refund. Tithing again seems like double-tithing.

The Case Against Tithing on a Refund

Argument 1: You already tithed on it Your employer withheld $6,000. If you tithe on gross, you already gave 10% of that $6,000. Getting it back isn't new income; it's return of your property. Tithing it again would be tithing twice.

Argument 2: It was always your money A refund is restitution, not gift. It's different from bonus income, which is genuinely new.

Argument 3: It's overly scrupulous The refund represents inefficiency in tax withholding, not divine blessing. You're not being tested by receiving your own money back.

Strongest argument: Since you likely tithed on the gross income already, tithing the refund amounts to tithing the same dollars twice.

The Case for Tithing on a Bonus

A bonus is clearly new income you didn't have before. Arguments for tithing on it:

Argument 1: It's genuine increase You earned this money through work. You didn't have it before. Tithe 10% as you would regular income.

Argument 2: Consistency If you tithe on your salary, consistency demands you tithe on bonuses. They're both earned income.

Argument 3: Testing your heart Bonuses often feel like "found money." Tithing on them reveals whether your generosity is conditional or consistent.

Argument 4: Biblical principle Proverbs 3:9 calls for honoring God with "firstfruits of all your crops." A bonus is a crop you've grown through work.

This is the strongest case. A bonus is earned income and should be tithed like salary.

A Practical Framework

Case Studies

Marcus Gets a Tax Refund

Marcus earns $72,000/year and tithes on gross ($7,200/year). He receives a $2,400 tax refund from overpayment.

Should he tithe? He already tithed on the $2,400 as part of his gross income. Tithing the refund would mean giving 20% of that $2,400 (10% as wages, 10% as "refund"). This seems excessive.

Recommendation: The refund is nice, but don't feel obligated to tithe. If Marcus wants to use it to increase his overall generosity (perhaps directing it toward a special offering or missionary he supports), that's wonderful. But it's not required.

Jennifer Gets a Performance Bonus

Jennifer earns $85,000 base salary and receives a $12,000 performance bonus. She tithes 10% on her base salary ($8,500/year). Does she tithe on the bonus?

Yes. The bonus is new income she earned through work. She should tithe $1,200 on it, just as she does on salary.

Over the year, Jennifer will give: $8,500 (base salary) + $1,200 (bonus) = $9,700 in tithes. This represents 10% of her total earned income ($97,000).

David Gets Inheritance

David's grandmother passes and leaves him $50,000. His church suggests he tithe $5,000 of it.

This is inappropriate. An inheritance is transfer of principal, not income. David didn't earn it; it was given. It's not increase from his labor. While David can certainly give a portion of the inheritance to his church if moved by gratitude, a tithe isn't biblically required. The inheritance isn't income in the sense Scripture uses the term.

The Deeper Pattern

How you handle these windfalls reveals something important. When unexpected money appears, do you:

• Immediately think "This is mine, what will I buy?"
• Think "Some of this should go to God"?
• Consider what generosity would look like?

Proverbs 13:11 suggests that sudden windfalls often disappear quickly, while deliberate, planned generosity creates lasting blessing. The person who receives a bonus and immediately tithes it, then plans carefully how to use the remainder, tends to be more satisfied with the outcome than someone who spends impulsively.

A Wise Approach to Any Windfall

Regardless of whether you feel obligated to tithe:

1. Pause before spending. Don't allocate the money the day you receive it. Sleep on it.

2. Tithe if moved. Some portion going to God and His kingdom often feels right. Even if not "required," consider giving.

3. Allocate deliberately. Use the windfall to fund a goal (emergency fund, debt payoff, planned investment) rather than lifestyle inflation.

4. Avoid using windfalls to justify new spending. Many people receive bonuses and immediately increase their budget. This erodes long-term financial health.

5. Consider increased generosity. A bonus is an opportunity to give more than your normal tithe. Perhaps this bonus prompts a special gift to a cause you care about.

Practical Decision-Making This Week

If you have a pending refund or bonus:

1. Determine whether it's new income or return of your own funds
2. If return of own funds: Optional to tithe; give if moved
3. If new income: Plan to tithe 10% as you would salary
4. Set aside your tithe immediately using your giving fund or account
5. Then deliberately plan the remaining funds rather than spending impulsively

The blessing of windfalls often comes not from the money itself, but from how you steward it.

Sources

• Köstenberger, Andreas J. & Mask, David C. "The Apostles' Teaching About Money." B&H Publishing, 2021.
• Blue, Ron. "Master Your Money: A Step-by-Step Plan to Financial Freedom." Thomas Nelson, 1986.
• Piper, John. "Desiring God: Meditations of a Christian Hedonist." Multnomah, 2011.