Qualifies for 60% AGI Limit (e.g., public charities, private non-operating foundations)
Qualifies for 30% AGI Limit (e.g., certain private non-operating foundations, capital gain property to public charities)
Estimated Deductible Amount:
Understanding Charitable Donation Deductions
The ability to deduct charitable contributions on your tax return can significantly reduce your taxable income. However, there are limits and rules governing how much you can deduct. This calculator helps estimate your potential deduction based on your Adjusted Gross Income (AGI) and the types of donations you've made.
Key Concepts:
Adjusted Gross Income (AGI): This is your gross income minus certain specific deductions. It's a crucial figure because deduction limits are often expressed as a percentage of your AGI.
Cash Contributions: These include actual cash, checks, credit card payments, and electronic fund transfers.
Non-Cash Contributions: These are donations of property, such as clothing, vehicles, stocks, or real estate. The value of non-cash donations can be more complex to determine and may have different deduction limits than cash.
AGI Limits: The IRS limits the amount of charitable contributions you can deduct in a single tax year. These limits are typically:
60% of AGI: For cash contributions to most public charities and certain private foundations.
30% of AGI: For contributions of certain capital gain property to public charities, or for contributions of cash and ordinary income property to certain private non-operating foundations.
50% of AGI: Historically applied to cash contributions, but often superseded by the 60% limit for most common scenarios. For simplicity, this calculator focuses on the 60% and 30% limits.
Carryover: If your contributions exceed the AGI limits in a given year, you can generally carry forward the excess for up to five years.
How the Calculator Works:
This calculator estimates your deductible amount by considering the following:
Total Contributions: It sums your cash and non-cash donations.
AGI Limits: It calculates the maximum deductible amount based on your AGI and the type of charity you donated to (60% or 30% limit).
Deductible Amount: The deductible amount is the lesser of your total contributions or the applicable AGI limit.
Example Calculation:
Let's say your AGI is $80,000. You donated $5,000 in cash to a public charity and $1,000 worth of non-cash items (which are treated as cash for the 60% limit in this simplified model) to the same charity.
Total Contributions = $5,000 (cash) + $1,000 (non-cash) = $6,000
60% AGI Limit = 0.60 * $80,000 = $48,000
Since $6,000 (Total Contributions) is less than $48,000 (60% AGI Limit), your estimated deductible amount is $6,000.
If your total contributions were $50,000:
Total Contributions = $50,000
60% AGI Limit = $48,000
Since $50,000 is greater than $48,000, your deductible amount for this year would be limited to $48,000. The remaining $2,000 could potentially be carried forward.
Disclaimer: This calculator provides an estimation only. Tax laws are complex and subject to change. Consult with a qualified tax professional for personalized advice regarding your specific situation.
function calculateDeduction() {
var agi = parseFloat(document.getElementById("adjustedGrossIncome").value);
var cashDonations = parseFloat(document.getElementById("totalCashDonations").value);
var nonCashDonations = parseFloat(document.getElementById("nonCashDonations").value);
var charityType = document.getElementById("charityType").value;
var resultDiv = document.getElementById("result");
var resultSpan = resultDiv.querySelector("span");
// Input validation
if (isNaN(agi) || agi < 0 ||
isNaN(cashDonations) || cashDonations < 0 ||
isNaN(nonCashDonations) || nonCashDonations < 0) {
resultSpan.textContent = "Please enter valid positive numbers for all fields.";
resultDiv.style.backgroundColor = "#ffc107"; // Warning yellow
resultDiv.style.display = "block";
return;
}
var totalContributions = cashDonations + nonCashDonations;
var agiLimit = 0;
var limitPercentage = 0;
if (charityType === "60Percent") {
limitPercentage = 0.60;
agiLimit = agi * limitPercentage;
} else if (charityType === "30Percent") {
limitPercentage = 0.30;
agiLimit = agi * limitPercentage;
} else {
resultSpan.textContent = "Invalid charity type selected.";
resultDiv.style.backgroundColor = "#dc3545"; // Error red
resultDiv.style.display = "block";
return;
}
var deductibleAmount = Math.min(totalContributions, agiLimit);
// Ensure deductible amount is not negative due to potential calculation errors (though unlikely with validation)
deductibleAmount = Math.max(0, deductibleAmount);
resultSpan.textContent = "$" + deductibleAmount.toLocaleString(undefined, { maximumFractionDigits: 2 });
resultDiv.style.backgroundColor = "var(–success-green)"; // Reset to success green
resultDiv.style.display = "block";
}