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Posts Tagged ‘tax deduction goodwill donation’

Question: Step by Step process of donating to goodwill or similar charity?

Can someone tell me the step by step process of donating clothing to goodwill store or similar style places and bing able to get the tax deduction. I have to use the long form for tazes anyway so might as well get the deduction if I can. Oh, This is mainly for used clothing and household goods. Good clean stuff thats left over from multi family house cleaning and yardsale.
Thanks!
I’ve never donated anything to get the deduction before, my prvious deductions have been drop offs. So I dont know what to expect.Also, Does it matter for taxes when the donation takes place? Such as there is a goodwill store close by in the next state.
Thanks again for any helpful answers!

Answer: 1. Each time you donate, make sure to obtain a receipt
2. Keep a record along with your receipt with a list of items donated
3. At the end of the year, make an estimate of the total value you are trying to claim. IRS allow Fair Market Value. Use this sheet as a guideline.

http://www.cincinnatigoodwill.org/donating/FMV2005.pdf

4. If the total is less than $500, then deduct the value in Schedule A Line 16
5. If the total value is greater than $500, you have to use Form 8283

Best wishes.

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Retailers Have New Help With Overstocks

Retailers in the U.S. have over $65 Billion worth of inventory annually in an overstocked position, causing a drain on profits and taking time and focus from personnel. The Retail Orphan Initiative announced today the launch of an online charity locator to match up retailers looking to donate overstocked merchandise with local charities, thus receiving a potential tax deduction for items that …

Goodwill of DE & DE County Donations

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.

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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