IMPORTANT: The projections or other information generated by this calculator regarding the likelihood of various outcomes are hypothetical in nature and are not guarantees of future results. The calculator does contemplate charitable contributions through a US Legacy Income Trust ® for which Eaton Vance Distributors, Inc. is a paid solicitor. Charitable split-interest instruments vary in features and benefits and donors should consult their tax advisor regarding their own unique circumstances.
The Eaton Vance Parametric Charitable Tax Benefit Calculator is offered solely for purposes of understanding how charitable giving may impact your income tax savings. It is not a solicitation for a charitable contribution and Eaton Vance Management is not providing any fundraising advice in connection with the Eaton Vance Parametric Charitable Tax Benefit Calculator. Eaton Vance Distributors, Inc. is a paid solicitor of the U.S. Charitable Gift Trust and the U.S. Legacy Income Trusts, receiving compensation as described in the applicable information statement or gifting booklet.
The output of this calculator is for educational purposes only and should not be considered investment, legal or tax advice. It is intended for use by U.S. individual taxpayers resident in the 50 states or the District of Columbia, and is not applicable to trusts, estates, corporations or persons subject to special rules under federal, state or local income tax laws. This calculator addresses the treatment of charitable contributions of cash and securities owned more than one year that are held outside qualified retirement plans and other tax-deferred or tax-exempt investment vehicles. Contributions are assumed to be made to an entity treated as a “50% limit organization” for federal income tax purposes, which includes U.S. charitable organizations that are tax-exempt under Internal Revenue Code (IRC) Section 501(c)(3) and that are either public charities or private operating foundations as defined under IRC Section 170(b)(1)(a). The tax treatment of other types of charitable contributions is outside the scope of this calculator, and may vary significantly from the results presented herein. The output is general in nature and is not intended to serve as the primary or sole basis for charitable giving, investment or tax-planning decisions.
The indicated charitable tax benefits are based on U.S. federal, state and local tax laws generally in effect as updated April 6, 2022. Tax laws are subject to change, and this analysis may not reflect the most current versions. For more individualized information, you should consult your tax advisor or investment professional. You bear sole responsibility for any decisions you make based on the output of this calculator. The calculator makes certain assumptions that may not apply to you. The calculator has many inherent limitations, and individual results may vary.
The calculation of potential income tax savings from avoided capital gain realization is based on the assumption that the indicated securities are alternatively sold to fund a cash charitable donation equal in value to the after-tax proceeds of the sale. The amount of potential income tax savings shown is calculated as the value of the contributed securities multiplied by the ratio of (a) the product of the combined federal, state and local long-term capital gain tax rate that applies and the amount of unrealized gain in the contributed securities as a percentage of the value of the contributed securities (gain percentage) and (b) one minus the product of the combined long-term capital gain tax rate that applies and the gain percentage. As calculated, the indicated amount of potential income tax savings from avoided capital gain realization equals the dollar value of the contributed securities that the donor could retain by funding the charitable contribution in kind, rather than by selling the indicated securities and donating the after-tax proceeds of the sale. If the contributed securities would not otherwise have been sold, donating securities to charity does not generate additional income tax savings beyond a cash contribution of equal value.
In addition to the itemized federal income tax deduction for qualified gifts to charity available to individual taxpayers, 31 states, DC and the local jurisdictions in IA, MD, NY and OR that tax individual income also permit resident taxpayers to deduct or receive a tax credit for qualified gifts to charity. The availability of charitable deductions or credits for resident taxpayers is generally limited to those who itemize their federal income tax deductions in DC, GA, ID, KS, LA, ME, MD, MO, NE, NM, ND, OK, SC, UT and VA; other states (AL, AR, AZ, CA, DE, HI, IA, KY, MN, MS, MT, NY, NC, OR, VT and WI) permit resident taxpayers to deduct or receive a credit for qualified charitable gifts irrespective of whether they itemize federal deductions. CO resident taxpayers who do not itemize their federal income tax deductions may deduct qualified charitable gifts in excess of $500 annually for state income tax purposes. For CO resident taxpayers who itemized their federal income tax deductions allowable itemized deductions are limited to $30,000 (in 2021) for single and head of household (HOH) taxpayers with federal adjusted gross income (AGI) in excess of a threshold amount (in 2021, $400,000) and $60,000 for married filing jointly (MFJ) taxpayers with federal adjusted gross income (AGI) in excess of a threshold amount (in 2021, $400,000). AZ resident taxpayers who do not itemize their state income tax deductions may increase their AZ standard deduction by 25% of the amount of their qualified charitable gifts. Income tax deductions or credits for qualified charitable gifts are subject to annual caps in ME and VT and are not available to ME resident taxpayers whose ME adjusted gross income (AGI) exceeds a threshold amount. Resident taxpayers whose state or federal AGI exceeds a prescribed threshold may be subject to the partial disallowance of their charitable deductions in CA, HI, MN, NY, MN and VA and may be subject to the complete disallowance of their charitable deductions in DC. The tax credit for qualified charitable contributions in UT may not be available for resident taxpayers whose UT taxable income exceeds a prescribed threshold. The tax credit for qualified charitable contributions in WI is available only to resident taxpayers whose WI itemized deductions exceed their allowable WI standard deduction. Residents of AK, FL, NV, SD, TN, TX, WA and WY are not subject to state or local income tax, and therefore receive no state or local charitable income tax deduction or credit. Residents of CT, IL, IN, MA, MI, NH, NJ, OH, PA, RI and WV are subject to state income tax, but no charitable income tax deduction or credit is allowable in those states. Among cities, counties and other local jurisdictions in the U.S. whose residents are subject to local income tax, only those in IA, MD, NY and OR permit the deduction of qualified charitable gifts for local income tax purposes.
A Taxable income is your annual gross income for federal tax purposes, less adjustments and the federal deductions you claim (standard or itemized).
B The "Married Filing Separately" and "Qualifying Widow(er)" filing status are not given as options on this calculator, but may apply to you. Charitable tax benefits for qualifying widow(er)s are the same as indicated for “Married Filing Jointly.”
Long-term capital gains (LTCGs) are gains recognized on the taxable disposition of a capital asset held for more than one year. LTCGs are generally subject to federal tax at rates up to 20% (plus the federal net investment income tax that applies – see below); higher LTCG rates apply to collectibles, section 1202 qualified small business stock and section 1250 real property, which are not addressed herein. In most states, LTCGs are subject to state and applicable local income tax at the same rates as apply to ordinary investment income. Certain states exclude a portion of LTCGs from taxable income: AR (50%); AZ (25%, only for assets acquired after 12/31/11); ND (40%); NM (40%); SC (44%); and WI (30%), the effect of which is included herein. WA imposes a tax of 7% on the sale or exchange of LTCG assets if the profits exceed $250,000, the effect of which is not shown. MT provides a non-refundable tax credit of 2% for net capital gains, the effect of which is included. For KS residents, LTCGs are not subject to local income tax where applicable, the effect of which is included. Net LTCGs in excess of $10 million are excluded from AR taxable income, net LTCGs of up to $5,000 annually are excluded from VT taxable income and net capital gains of up to $1,000 annually are excluded from NM taxable income, the effects of which are not included herein. LA and OK exclude from taxable income all or a portion of LTCGs realized on sales of stock of in-state companies held for multiple years and certain other states provide favorable treatment of limited categories of LTCGs, the benefits of which are not shown.
The 3.8% federal net investment income (NII) tax applies to individuals, estates and trusts with modified adjusted gross income (MAGI) above applicable threshold amounts ($200,000 for single and head of household; $250,000 for married filing jointly). NII generally includes gross income from taxable interest, dividends, annuities, royalties and rents (unless derived from a trade or business that isn’t a passive activity or trading business) and net gains on assets generating NII, net of allowable expenses. For the purposes of this calculator, your MAGI is assumed to equal your taxable income.
The calculation of charitable tax benefits is based on the federal, state and local income tax rates that apply to an incremental dollar of your investment income or gain and an incremental dollar of your qualified charitable contributions, which may vary from the treatment of larger amounts of income, gain or qualified charitable contributions. The analysis assumes that your taxable income for state and local tax purposes equals your federal taxable income. Material variations could cause your indicated charitable tax benefits to be overstated or understated. This analysis ignores the limited deduction for federal income taxes paid that is available in certain states (MO, MT and OR) and the limited itemized deduction for state and local income taxes paid that is available in certain states (AZ, GA, HI, MO and ND), which may cause the amount of your charitable tax benefits to vary from the amounts indicated. Charitable tax benefits indicated for AL and IA residents reflect the deduction for federal taxes paid that is available in those states. This analysis does not consider the impact on charitable tax benefits of the federal alternative minimum tax (AMT) or the AMT imposed by certain states (CA, CO, CT, IA and MN). The indicated charitable tax benefits may not apply to contributions of assets held in qualified retirement plans and other tax-deferred or tax-exempt investment vehicles.
This analysis does not consider the limited adjustment from income ($600 for married filing jointly; $300 for single and head of household) allowable for certain charitable contributions made in 2021 by individual taxpayers who elect the standard deduction on their federal income tax returns. As a result, the charitable tax benefits indicated for non-itemizing individual taxpayers who make cash gifts to a qualified public charity other than a donor-advised fund or a “supporting organization” as defined in IRC Section 509(a)(3) may be understated. This benefit does not currently apply to contributions made in 2022.