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Tax Deduction Guidelines for Donated Goods

By following these guidelines, you'll be able to receive maximum tax benefits when donating used but useful clothing and household goods.

1. Give your items to a qualified organization that has tax-exempt status with the Internal Revenue Service.(www.irs.gov). To find out if the organization is qualified:
*Ask the charity if has has tax-exempt status.
*Read the charity's literature to ensure that it is recognized by the IRS.
*If you are still not sure, you can check IRS's Cumulative List of Organizations (Publication 78) online.

2. Assign a fair market value to the items that you're donating.
*You can't claim a fair market value that is more than the original cost of that item.
*Having trouble estimating the market value? Click here to check the instructions.

3. Keep a detailed record of your donated items, including:
*The number of items and the condition they're in.
*The approximate dates you received or bought the items.
*The original purchase prices.
*A quick snapshot or video of the items you're donating -- this will substantiate your contribution if questions ever arise. Keep the visual record with your tax records.
*Ask for signed, dated receipts from the organization receiving your donation.

4. Report your charitable deductions on Schedule A of Form 1040. 5. Please be aware that the value of your charitable deductions can't be more than 50 percent of your adjusted gross income in any single year. Donations exceeding the 50 percent limit can be carried forward to future years.

6. When you donate more than $500 worth of goods to charity, you must include Form 8283, Noncash Charitable Contributions, with your tax return.

7. Donations of cash or stock are also tax deductible! Your favorite cause or charity will gladly send you a thank you note verifying the deductibility of your donation. Check Guidestar to find good organizations and giving ideas.

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