Can I Count Money I Owe My Friend Toward My Zakat?
Question
My friend paid $4,000 for something I wanted… when we came home I offered to pay him the money but he said it’s okay leave it for now and I’ll get the money from you later….I pay my zaakat during Ramadan so, do I count that money towards my zakat? Or is the money considered my friends even though he didn’t take it now, but wants it later. The money is available anytime when he wants it back.
Answer
Alhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain.
1. The Shari Context
Zakat is an obligatory purification of wealth. Allah says:
“Take from their wealth a charity by which you purify them and cause them increase.”
Surat al Tawbah 9:103
And He says regarding recipients:
“Zakat expenditures are only for the poor and the needy…”
Surat al Tawbah 9:60
Zakat is due on wealth that you fully own and possess (milk tam). Debts and liabilities affect how zakat is calculated.
2. Scholarly Discussion
The scholars agree that zakat is only due on wealth that is owned and under one’s control.
If someone owes a debt, the jurists differed on whether debts reduce zakatable wealth. However, they agreed that money you owe someone does not belong to that creditor until it is transferred. It remains in your possession but is legally a liability upon you.
If your friend paid $4,000 on your behalf and expects repayment later, this is a debt (qard) that you owe him.
You cannot count repayment of a personal debt to a non-zakat-eligible person as zakat. Zakat must be given to someone who qualifies under the eight categories mentioned in Surat al Tawbah.
3. Application to Your Situation
In your case:
- The $4,000 is still in your possession.
- It is your wealth legally.
- However, you owe your friend that amount as a debt.
You cannot count that $4,000 as zakat because:
- Your friend is not receiving it as zakat.
- Repaying a debt is not the same as giving zakat.
- Zakat requires intention and transfer to a qualified recipient.
When calculating zakat:
- You calculate your total zakatable wealth.
- You may deduct immediate payable debts according to many scholars.
- Then you pay 2.5% on the remaining qualifying amount if it reaches nisab.
The fact that your friend said “leave it for now” does not make it a gift. Since he clearly intends to collect it later, it remains a debt.
If he later forgives the debt entirely, then it becomes a gift to you at that point.
4. Relevant Usul Principle
الأصل براءة الذمة
The default is freedom from liability
However, once a debt is established, your liability remains until repayment or forgiveness. Therefore, the money remains yours but is owed.
Final Ruling
You cannot count the $4,000 you owe your friend as zakat. It remains your debt to him until repaid or forgiven. When calculating zakat, you may deduct legitimate debts according to scholarly opinion, but repayment to your friend is not itself zakat.
And Allah knows best.