That’s great that you are considering giving so much! When people say what percent of their income they are donating, usually they use the pretax income, which is the adjusted gross income (AGI) in the US. This is less than the total compensation because of things like benefits, some contributions to retirement, etc. I am not sure how stock options work, so hopefully someone else can join in on this. Unfortunately your calculator does not tell you the AGI, but you could probably find one that does. It seems to me that the calculator is giving broadly reasonable results. Basically, your net income doesn’t decrease as much as your charity amount because of the tax advantage. It used to be that the maximum you could give with a federal tax advantage was 50% of AGI, but that got changed to 60% a couple years ago. And I’ve read that this year it is actually 100%. Of course even if the tax advantaged limit is 60% of AGI, you could still give more.
I believe the 50% of AGI tax deductible limit refers to donating appreciated stock. Here is one AGI calculator. Here’s a good post on charity and taxes in the US. Aaron Hamlin might be good to contact about how stock from your company is treated.
That’s great that you are considering giving so much! When people say what percent of their income they are donating, usually they use the pretax income, which is the adjusted gross income (AGI) in the US. This is less than the total compensation because of things like benefits, some contributions to retirement, etc. I am not sure how stock options work, so hopefully someone else can join in on this. Unfortunately your calculator does not tell you the AGI, but you could probably find one that does. It seems to me that the calculator is giving broadly reasonable results. Basically, your net income doesn’t decrease as much as your charity amount because of the tax advantage. It used to be that the maximum you could give with a federal tax advantage was 50% of AGI, but that got changed to 60% a couple years ago. And I’ve read that this year it is actually 100%. Of course even if the tax advantaged limit is 60% of AGI, you could still give more.
I’ve written an entire essay outlining how charitable giving and taxes work. You may find that helpful: https://​​medium.com/​​@aaronhamlin/​​your-guide-to-charitable-giving-and-taxes-a7c0f44c922
IRS says here it is 50-60% for public charities: https://​​www.irs.gov/​​charities-non-profits/​​tax-exempt-organization-search-deductibility-status-codes
I used 13.3% as state income tax for california.
If you have any suggestions for AGI calculators please let me know.
Thanks for the comment, in an otherwise deserted post. :(
I believe the 50% of AGI tax deductible limit refers to donating appreciated stock. Here is one AGI calculator. Here’s a good post on charity and taxes in the US. Aaron Hamlin might be good to contact about how stock from your company is treated.