What are the new IRS rules about documenting a donation?

Question

I've heard that we now have to put a value on the clothing I donate to Goodwill.

Answer 1

Short form: If you don't have a receipt from whoever you donate to showing what THEY say your donation is worth, the IRS will disallow the deduction in an audit. A value has ALWAYS been required for donations of any sort. You can't write 'clothing' on your Schedule A.

Answer 2

Yes, and you can't deduct any donation of clothing or other household goods that's not in good used condition or better.

You need to have reasonably detail records of what was donated, not just "three large bags of used clothing".

For non-cash donations of over $250, you have to have a receipt from the organization including among other things a description of any property you contributed. There are additional requirements for receipts for donations of property over $500.

You always did have to put a value on clothing you donated to Goodwill - how else would you have known what amount to deduct? Rules are tightening down though, so people can't claim unreasonably high donation values.

Answer 3

I would try to ask Goodwill how much they think it's worth (appraisal) and then get a receipt for your contribution. I think you need to save that receipt for 7 years.