Charitable Giving Tax Savings Calculator
Charitable Giving Tax Savings Calculator Definitions
- Federal Income Tax Rates:
- Adjusted Gross Income (AGI)
- This is your total income for the year. To keep things simple this calculator assumes this is your net income, after deductions for retirement contributions such as 401(k)s, IRAs, etc.
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
Filing Status Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately". Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider. Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
For 2018, the standard deductions are: **STANDARDDEDUCTION_TAXYEAR_DEFINITION**
- Are you someone's dependent?
- Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
- Medical and dental expenses
- Enter your qualified medical and dental expenses for the year. This can include your health insurance premiums if you paid for them yourself (not through an employer sponsored plan) and you have not deducted them elsewhere. Your actual deduction is only for the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.
- Taxes paid (generally state and local)
- Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state local sales taxes instead of state and local income taxes.
- Interest paid
- Enter the total interest paid for a home mortgage and certain investment interest. Mortgage interest is report on form 1098. You can also include them amount you paid for 'points' (which reduces your mortgage interest rate) and any mortgage insurance premiums paid for mortgages issued after December 31st, 2006 (also reported on form 1098). You should also include any interest allocated to money you borrowed for investment purposes (form 4952).
- Gifts to charity
- Enter your total gifts of cash and non-cash to qualified charitable organizations.
- Itemized deduction
- Your total itemized deductions from Schedule A.
- Additional charitable donation
- This is your additional proposed donation to charity. This is in addition to the total itemized deductions you have entered. We will compare the tax results with and without this charitable donation included to determine the potential tax savings of such a gift. We assume that the entire amount you enter will be made to qualified organizations and the full amount is tax deductible on Schedule A.
There are limitations on charitable contributions based on the type of organization receiving the contribution and whether the property is cash, capital gain property (such as stock), or other property. If you anticipate contributions will exceed 20% of your Adjusted Gross Income, you should be especially aware of these limitations. In addition, if you are contributing property other than cash or stock, there may be an appraisal of the property required.
Please consult your tax advisor related to the specifics of your charitable giving