I understand that Zakat should be paid on an individuals wealth but wanted to know a bit more. I've looked online but haven't able able to find details that I was looking for on calculation. -are 401k's and retirement plans included as wealth? -how about company salary/bonus? -do we pay zakat on gold jewelry that has been inherited? (or do not intend to liquidate) -under assets, do I include items such as vehicle, house, assuming they are paid? -under liabilities, do I include items such as rent, mortgage, taxes on income/ property, utilities? -is the nisab amount calculated by family or by individual? -is zakat calculated by family or individual? If responses makes a difference, im Sunni Hanafi. Thanks! 832-228-7427

AAWW

1-      Whatever you possess for your personal use is exempted from Zakah. This include your car, house, clothes...etc.

2-      The inherited gold is exempted if it is intended to be used as jewelry and as long as it is within the average in the society you live in.

3-      The remaining money from you salary, bonus,.. is Zakatable if you have the threshold in the Zakah due date. The Nisab is the value of 85 grams of gold.

4-      Your 401K is like any other pension or saving plan. Zakah is mandated on the withdrawable amount after deducting all taxes, interest, administrative fees, penalty,..etc. The above does not mean you have to withdraw the amount to pay Zakah on it, it means you should do a theoretical calculation to come up with these numbers, so as to be able to calculate your Zakah.

5-      From the gross amount you have in one pool in the Zakah due date, you should deduct all the due debts and due expenditures like rent, utility bills…etc. The remaining (the net) is subject to Zakah based on 2.5% Zakah rate.

6-      Zakah calculation should be done on one-to-one basis. This means every single person should have his individual and exclusive wealth to pay its Zakah. But Zakah could be paid on one kind of wealth if it is completely shared by more than one person and treated as if it is the wealth of one individual.