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A helpful guide with short descriptions and worksheets can be found in the short book “Simple Zakat Guide” by Imam Joe Bradford. Zakat is due each lunar year that passes where a person has the minimum liable amount for Zakat (approx $4,000) and maintains that amount or more throughout that year. There are some relevant details based on your specific situation and the assets you hold, generally speaking, Zakat is calculated by adding up the cash & cash equivalent (checking accounts, savings accounts, etc.) – subtracting the immediately due obligations – and paying 2.5% on the net amount each lunar year. Long-term debts such as mortgages that are not immediately due do NOT figure into the net calculation. There are worksheets in the book above, and online, that are helpful in completing this.
There are other Zakatable assets such as gold, silver, investments, etc. that should be reviewed if they apply in your situation – the reference above is good for that.
Zakat can be paid to any Zakat-eligible recipient – the masjid has Zakat funds that are used only for Zakat-eligible disbursements, or a person may give a qualifying entity or person directly if they know they are eligible for Zakat.
