The IRS Deductions Blog

Posts Tagged ‘donation’

Question: How do I track Goodwill donations for tax deduction purposes?

I’ve never tracked Goodwill donations for Tax Deductions and I have no idea where to start…

What are the things I need to do?

Answer: First, take pictures of the items you are donating. The forms that Goodwill hands out are signed, blank forms. They don’t even look at what you are giving them. The IRS is starting to crack down on non-cash donations, so having proper proof is key.

Second, write down as many of the items as possible on the donation slips when you get them, or attach a list to the slip.

Generally, I take the “Thrift Store Value,” which is the amount the store will be selling those gifts for. If possible, write down on your list that you attached to the slip about when you bought the items and how much you paid for them originally.

Finally, remember to get an address of where you dropped off the items.

You will need all of this to fill out form 8283 for non-cash donations as part of your tax return.

Items on Amazon Right Now for Tax Deduction Goodwill Donation:

Goodwill to open first store in Aberdeen

BY JACQUELINE HLAVENKA Staff Writer ABERDEEN — This summer, “goodwill” will be spreading to Route 35 in the heart of Cliffwood Beach. Goodwill Industries of Southern New Jersey and Philadelphia, a nonprofit organization, will open its first Monmouth County retail location at 296 Route 35 in the township, inside a 10,908-square-foot building formerly occupied by Rite Aid. read more

Question: Is there specific rules for collecting donations (cash & misc Items) for abused wom. & teens?

I have been collecting donations to help not just abused women but women who are just having a hard time starting over and if they have teen age children. I have gotten large amounts of cash plus many stores have donated new clothing, school supplies, furniture, and a lot of stuff people use daily. I am just not sure if I have a legal responsibility for $ amount of donations, or do I just take these things into different shelters and let them handle any filings for these companies to rec a tax deduction. Can someone help me find out? Maybe I should get a office bldg. to store all the things I have and maybe make it so that the receipient has to be reffered to be and picks up what they want by appointment only.
I am running out of space in my own home. Thank You.

Answer: Most states have a regulatory agency for a situation such as this. Persons donating items are allowed to use the donation as a tax deduction therefore they must receive a receipt. Your state regulatory agencies can give you the information to register as a non-profit entity.

Items on Amazon Right Now for Donation Tax Deduction Rules:

Demolish or deconstruct?

Taking apart a house piece by piece can keep junk out of the landfill by Kate Daly

Tax deduction donation-how do I know I will get my tax refu

Question: Australian tax office deduction question?

the rule for claiming work related expenses is if the total claim is over $300, receipts etc must be kept.

my question is if the $300 limit includes self-education expenses, or the deduction for tax preparation. if not, whats the substantiation/written evidence rules for self-education expenses.

thanks

Answer: Tax preparation deductions and self education expenses are not included in the $300 amount for work related expenses. The Work Related Expenses category covers such things as laundry expenses, and miscellaneous expenses.

It is worth mentioning that there is not a $300 limit as such on work related expenses. This is the amount you can claim up to without receipts for work related expenses, but if you are audited you can be expected to be asked to produce receipts or proof of the expenses you have claimed in that total. You can also claim more than $300 if you have proof of those expenses.

For self education expenses, any claims must be directly related to your current employment. For example if you are a chef then an additional training course if cooking could be claimed. Using that same example, if you are a chef then a claim for a course in nursing would not be claimable as it is not related to your income. Proof would be a receipt from the training provider for course payment, a receipt for text books and stationery, and similar charges.

Items on Amazon Right Now for Tax Deduction Rules:

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Lockheed Martin says first-quarter profit fell 18 percent

Lockheed Martin, the world’s largest defense contractor, said Wednesday that its profit for the first quarter fell 18 percent compared with the same period a year ago, a decline related largely to changes in federal tax policy brought on by the recently passed health-care reform law.

Question: how do i know how much is my donations of goods worth for tax deduction purposes?

im planning on donating a box full of clothes, accessories, etc to a thrift store,, but i’ve never done this before and i would like to know how i would itemize for next year’s tax..
when i file my taxes next year will it ask for a $ amt of how much it’s worth? if so,, how would i know how much it is coz i do my own tax online..
will the thrift store give me some kind of receipt and will it have the amt on there?
will it even affect my tax? what’s the least amt i need to donate for it make a difference on my taxes

Answer: Walk around the thrift store and see what similar items are selling for – that’s what your deduction is, not what you paid for the items. For example, a shirt you paid $30 for might be a $2 deduction. Yes you’ll have to enter a value for your donation into the tax program. The thrift store will give you a receipt, but not with a value on it. Be sure to keep a list of the items you donated – keep it with the thrift store receipt, you’ll need both if the IRS asks to see them.

If you already itemize, even a small donation will affect your taxes. To itemize, your total Itemized Deductions (not just the donation) for 2009 would have to be over $11,400 if you file a joint return, or over $5700 if you’re single. Look at schedule A to see other itemized deductions. Unless you own a house with a mortgage, there’s a good chance you won’t have enough to itemize.

Items on Amazon Right Now for Tax Deduction Clothing:

10 Common Tax-Filing Mistakes to Avoid

To get exactly what you should from the IRS — and as quickly as possible — look out for these filing pitfalls.

Question: How do you best ensure donated clothing receives high value for tax purposes?

I’m reading this thing and it says for example that shirts can be valued anywhere from $2-8 for the purpose of tax deduction.

Do you have to wash and iron the clothes to make them look like new before donating?

I have really good stuff. Most of my stuff is Banana Republic, Armani, J Crew, Gap, Express. It looks cruddy because it’s all wrinkled and dusty.

What’s the best way to ensure my donated goods are valued at a good price?

Answer: It will only matter if you get audited. If the IRS starts checking your deductions, they’ll see the receipt you got from Goodwill – which doesn’t itemize or provide value – and they’ll challenge the value you placed on the goods.
So when you donate, itemize for yourself on the receipt “6 Armani shirts, good condition, $48″ etc. If your deductions vs. your income are going to be way out of line this year, take digital photos and store them.
You don’t have to wash & iron the clothes, if they are dirty or sweat-stained the charity is going to send them to a scraphouse no matter the brand. If you care about the charity and not just about your tax deduction, wash them and hang them decently on clotheshangers.

Items on Amazon Right Now for Tax Deduction Clothing Value:

Tax Tip: 10 tips for deducting charitable contributions

The IRS has put together these 10 tips to help ensure your charitable contributions pay off on your tax return.