my dad has a 1994 car that he wants to donate but he says he can't because he is retired and he doesn't file taxes anymore, what can he do?
2007-11-26 08:06:21 · 4 answers · asked by bigbro1267 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
A tax refund is just that; a refund of overpaid taxes.
If he doesn't have any income to have taxes withheld from, their is nothing to refund to him.
2007-11-26 08:14:23 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
If he doesn't have to file taxes, or even if he did but didn't have any tax liability, a charitable donation wouldn't give him any tax benefit. Even if he did have tax liability, there would be no tax benefit unless he had enough deductions to itemize.
A donation can only reduce your tax - since his is already zero, there's nothing to reduce.
That doesn't stop him from donating the car, just means he doesn't get a tax benefit for it.
2007-11-26 10:52:11 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
He can sell the car and donate the money--the charity would get more money that way....
(By the way, he can't sell the car to you for $1 and have you donate it, because if he did, your deduction would be limited to $1.)
2007-11-26 18:36:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
if he collects social security benefits - he should be filing a tax return - those benefits are taxable - does he have any other income like interest or pension? those are taxable also.
2007-11-26 08:16:11 · answer #4 · answered by Anonymous · 0⤊ 3⤋