how much donation to Goodwill should i give so i can put it on my income tax return?

Answer 1

Whatever you want to give. But it will only do you any good if you itemize. If you take the standard deduction you get nothing for charitable contributions.

The only thing though is that if you give cash you can only deduct up to 50% of your AGI and if there is any excess, it gets carried forward for future use, but has only a 5 year carryforward. If it's non-cash contribution (i.e. clothing) you can deduct up to 50% (30% for gifts of appreciated property) of your AGI, and there is another form (form 8283) you need to fill out if you give more than $500 in non-cash contributions. Also, due to a recent change in the tax laws, the clothing has to be in "good" condition or better to be deductible. If the non-cash deduction is more than $5,000 a qualified appraisal of the items must be obtained, and if the deduction is more than $500,000 (that would be a lot of clothing!) the appraisal itself must be attached with the return.

Answer 2

The fair market value (what it will sell for at the Goodwill store) of anything you give to Goodwill (or the Salvation Army or other recognized charity) can be written off as a contribution. You have to have enough total deductions to exceed the standard deduction--$10,700 for a married couple in 2007, half that for a single--or there is no point in itemizing.

Answer 3

(Tax Deductions) What's New for 2006:
Clothing and household items. You cannot take a deduction for clothing or household items you donate after August 17, 2006, unless the clothing or household items are in good used condition or better.
You should read this...
http://www.irs.gov/publications/p526/ar01.html

If your donation was $250 or more, be sure you get a receipt from Goodwill.

If the amount of any single noncash contribution is greater than $500, you also must complete and attach Form 8283 on the long 1040 tax return, Noncash Charitable Contributions. And if your deduction is more than $5,000, the IRS may require you to get appraisals of the donated property.
http://www.bankrate.com/brm/itax/news/20010402f.asp

Form 8283
http://www.irs.gov/pub/irs-pdf/f8283.pdf

Answer 4

You can deduct whatever you give, as long as you itemize - if you don't itemize, then you get no deduction for a Goodwill donation.

The amount you can deduct is NOT what you paid for the items, it's what they can sell them for. Their website has a guide on values of various items. You will need to have a detailed list of what you donated, and a receipt from Goodwill.

Answer 5

With some limitations you can "write off" 100% of the FMV of your donations to Goodwill if you itemize your deductions. If you do not itemize on Schedule A you will not be aboe to take any deduction specifically for the stuff you give Goodwill.

Answer 6

As long as you itemize, you can write off 100% of your donations (up to a certain amount). Anything over that amount will have to roll over to the next tax year.

Answer 7

If you don't have other itemized deductions and you are married I would say $10,000 plus how much you want as a write off.

Answer 8

Usually you need at least $5000 for it to even matter and you have to itemize your deductions. You can get up to $5000 through various charitable contributions.

Answer 9

There are several considerations before answering:
1-If you do not itemize deductions, because you do not have enough in itemized deductions, so you take the standard deductions on your IRS form, you cannot deduct charitable contributions.


According to the 2006 (most recent) IRS PUblication for charitable contributions,l I took out some of the following information, which may be confusing if you try to digest it all, but which will answer almost all questions you may have about non-cash contributions,

The whole publication is at:
http://www.irs.gov/publications/p526/ar02.html#d0e651

I only included that part that pertained to noncash contributions.

A new IRS Code as of August 17, 2006 says
Clothing and household items. You cannot
take a deduction for clothing or household items you donate after August 17, 2006, unless the clothing or household items are in good used condition or better.


3-ACCORDING TO THE IRS GUIDELINES,

Contributions You Can Deduct
Generally, you can deduct your contributions of money or property that you make to, or for the use of, a qualified organization. A gift or contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.

The contributions must be made to a qualified organization and not set aside for use by a specific person.

If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. See Contributions of Property, later.

Your deduction for charitable contributions is generally limited to 50% of your adjusted gross income, but in some cases 20% and 30% limits may apply. In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited

Written statement. A qualified organization must give you a written statement if you make a payment to it that is more than $75 and is partly a contribution and partly for goods or services. The statement must tell you that you can deduct only the amount of your payment that is more than the value of the goods or services you received. It must also give you a good faith estimate of the value of those goods or services.

The organization can give you the statement either when it solicits or when it receives the payment from you.

Exception. An organization will not have to give you this statement if one of the following is true.
The organization is:

The type of organization described in (5) under Types of Qualified Organizations, earlier, or

Formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context.

You receive only items whose value is not substantial as described under Token items, earlier.

You receive only membership benefits that can be disregarded, as described earlier.

Contributions of Property
If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction

Clothing and Household Items
You cannot take a deduction for clothing or household items you donate after August 17, 2006, unless the clothing or household items are in good used condition or better.

Household items. Household items include:
Furniture,

Furnishings,

Electronics,

Appliances,

Linens, and

Other similar items.


Household items do not include:
Food,

Paintings, antiques, and other objects of art,

Jewelry and gems, and

Collections.


Appraisal for items more than $500. You can take a deduction for a contribution of an item of clothing or a household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return.

Determining Fair Market Value
This section discusses general guidelines for determining the fair market value of various types of donated property. Publication 561 contains a more complete discussion.

Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.

Used clothing. The fair market value of used clothing and other personal items is usually far less than the price you paid for them. There are no fixed formulas or methods for finding the value of items of clothing.

You should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops.

Household items. The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value.

You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Do not include any of this evidence with your tax return.

If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art in Publication 561.


Penalty
You may be liable for a penalty if you overstate the value or adjusted basis of donated property.

20% penalty. The penalty is 20% of the amount by which you underpaid your tax because of the overstatement, if:
The value or adjusted basis claimed on your return is 150% or more of the correct amount, and

You underpaid your tax by more than $5,000 because of the overstatement.


40% penalty. The penalty is 40%, rather than 20%, if:
The value or adjusted basis claimed on your return is 200% or more of the correct amount, and

You underpaid your tax by more than $5,000 because of the overstatement.

Limits on Deductions
If your total contributions for the year are 20% or less of your adjusted gross income, you do not need to read this section. The limits discussed here do not apply to you.

The amount of your deduction is limited to 50% of your adjusted gross income, and may be limited to 30% or 20% of your adjusted gross income, depending on the type of property you give and the type of organization you give it to. A different limit applies to certain qualified conservation contributions. These limits are described in detail in this section.

Your adjusted gross income is the amount on Form 1040, line 38.

If your contributions are more than any of the limits that apply, see Carryovers under How To Figure Your Deduction When Limits Apply, later.

Noncash Contributions
For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is:

Less than $250,

At least $250 but not more than $500,

Over $500 but not more than $5,000, or

Over $5,000.


Amount of deduction. In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year.

If you got goods or services in return, as described earlier in Contributions From Which You Benefit, reduce your contribution by the value of those goods or services. If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value, your contribution is the reduced amount.

Deductions of Less Than $250
If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing:

The name of the charitable organization,

The date and location of the charitable contribution, and

A reasonably detailed description of the property.

A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt.

You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site).

Additional records. You must also keep reliable written records for each item of donated property. Your written records must include the following information.
The name and address of the organization to which you contributed.

The date and location of the contribution.

A description of the property in detail reasonable under the circumstances. For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market.

The fair market value of the property at the time of the contribution and how you figured the fair market value. If it was determined by appraisal, you should also keep a copy of the signed appraisal.

The cost or other basis of the property if you must reduce its fair market value by appreciation. Your records should also include the amount of the reduction and how you figured it. If you choose the 50% limit instead of the special 30% limit on certain capital gain property (discussed under Capital gain property election, earlier), you must keep a record showing the years for which you made the choice, contributions for the current year to which the choice applies, and carryovers from preceding years to which the choice applies.

The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed.

The terms of any conditions attached to the gift of property.


Deductions of At Least $250 But Not More Than $500
If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions.

The acknowledgment must contain the information in items (1) through (3) listed under Deductions of Less Than $250, earlier, and your written records must include the information listed in that discussion under Additional records.

The acknowledgment must also meet these tests.

It must be written.

It must include:

A description (but not necessarily the value) of any property you contributed,

Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and

A description and good faith estimate of the value of any goods or services described in (b). If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit.

You must get it on or before the earlier of:

The date you file your return for the year you make the contribution, or

The due date, including extensions, for filing the return.


Deductions Over $500 But Not Over $5,000
If you claim a deduction over $500 but not over $5,000 for a noncash charitable contribution, you must have the acknowledgment and written records described under Deductions of At Least $250 But Not More Than $500. Your records must also include:

How you got the property, for example, by purchase, gift, bequest, inheritance, or exchange.

The approximate date you got the property or, if created, produced, or manufactured by or for you, the approximate date the property was substantially completed.

The cost or other basis, and any adjustments to the basis, of property held less than 12 months and, if available, the cost or other basis of property held 12 months or more. This requirement, however, does not apply to publicly traded securities.

If you are not able to provide information on either the date you got the property or the cost basis of the property and you have a reasonable cause for not being able to provide this information, attach a statement of explanation to your return
Limit on itemized deductions.

For 2006, the total of your charitable contributions deduction and certain other itemized deductions may be limited if your adjusted gross income is more than $150,500 ($75,250 if you are married filing separately). This is in addition to the other limits described here. See the instructions for Schedule A (Form 1040) for more information about this limit.

Records To Keep
You must keep records to prove the amount of the cash and noncash contributions you make during the year. The kind of records you must keep depends on the amount of your contributions and whether they are cash or noncash contributions.

Note.
An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier.) Keep the statement for your records. It may satisfy all or part of the recordkeeping requirements explained in the following discussions.

A receipt (or a letter or other written communication) from the charitable organization showing the name of the organization, the date of the contribution, and the amount of the contribution.

Other reliable written records that include the information described in (2). Records may be considered reliable if they were made at or near the time of the contribution, were regularly kept by you, or if, in the case of small donations, you have buttons, emblems, or other tokens, that are regularly given to persons making small cash contributions

Contributions of $250 or More
You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records.

If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions.

Acknowledgment. The acknowledgment must meet these tests.
It must be written.

It must include:

The amount of cash you contributed,

Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and

A description and good faith estimate of the value of any goods or services described in (b). If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit.

You must get it on or before the earlier of:

The date you file your return for the year you make the contribution, or

The due date, including extensions, for filing the return.

How To Report
Noncash contributions. Enter your noncash contributions on schedule A (Form 1040), line 16.

Total deduction over $500. If your total deduction for all noncash contributions for the year is over $500, you must complete Section A of Form 8283, and attach it to your Form 1040. However, do not complete Section A for items you must report on Section B. See Deduction over $5,000 for one item, next, for the items you must report on Section B.

The Internal Revenue Service can disallow your deduction for noncash charitable contributions if it is more than $500 and you do not submit a required Form 8283 with your return.
Clothing and household items not in good used condition. You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. See Clothing and Household Items, earlier.