I heard that now you have to itemize your donated items to Goodwill to get tax credit. Is that true?

Question

We used to just take a carload of stuff to Goodwill and just estimate the overall value but now I heard you have to itemize every single thing to qualify for tax credit. I've got a bunch of stuff and would like to know this answer before dropping it off at a donation center.

Answer 1

You don't really have to but it would be a good idea if you donate a lot. "a lot" would have to be checked with the IRS and your state.

Answer 2

When you donate items and want to claim your donations on your tax returns, then you have to use a Schedule A (itemized deductions) and file a 1040 long form. The total of your itemized deductions has to be more than your standard deduction or you can not use the Schedule A. Here is an example: The standard deduction for married filing jointly in 2006 was $10,300. If my itemized deductions could not exceed that amount that I could not itemized even if I donated items. You might want to relook at your tax returns from last year.

Answer 3

For non-cash donations (i.e. clothing, furniture, etc...) that's worth more than $250 for "each" donation, you are required by law to have a receipt to prove their worth.

The Salvation Army has an online guide that can assist you in pricing your clothing donations.

Remember that the FMV of the clothes is what people "actually are willing" to pay for the clothes, NOT what you think it's worth.

For example, you buy a new Gucci handbag for $1,000 but decided to donate it to charity 6 months later. It is NOT worth $1,000. Think... what price would a "relatively normal" person pay for that handbag in a charity store?? Maybe $100.

Don't think that buying "extravant" clothes means that you can get a "big" write-off because it's a "designer" name!

Also, for you to get any tax deduction, you would need to itemize on your tax return so if you take the standard deduction, you would not get a tax benefit.

You could also think of helping others which is what charitable giving truly is meant for.

Answer 4

You have to itemize your deductions in order to get this credit. Even when you do, you can only get $250 without having to have reciepts... Anything more, you have to have reciepts in the event of an audit. The weird thing is, that these donations are based on what you feel the value is, which is why you have to keep reciepts.

Why donate for tax reasons? Donate becuase you want to help, not for the monetary income tax return....

Answer 5

you should always do this in case the IRS decides to audit you then you have evidence showing what was donated, plus the receipt from goodwill. These donations should also be itemized to show the true value because your estimation for one large bag of stuff could be way more or less than what it is worth.

Answer 6

Yes, the rules have changed on documenting donations - too many people were lying about it and making false claims. If you are claiming the current value of the items you really are donating, then you don't lose anything except a little time to list them. If you were inflating the amount of your donation before, then you will have to be accurate from now on.

Answer 7

you aren't to any extent further waiting to donate blood for one 365 days. that's a screening equipment. even in spite of the indisputable fact that maximum tattoo shops use sterile equiptment now they did not used to and they might spread ailments. that's a temporary aspect, and the size of the tattoo does no longer count number. it is an analogous way with piercings, once you get one you aren't to any extent further imagined to donate for 12 months. that's from the yank purple bypass website. "Tattoo Wait 3 hundred and sixty 5 days after a tattoo if the tattoo changed into utilized in a state that does no longer regulate tattoo centers. This requirement is concerning to concerns about hepatitis. benefit understanding of more advantageous about hepatitis and blood donation. "