Donating Clothes for a Tax Deduction
Making a charitable clothing donation can be mutually beneficial for you and the organization that receives your clothes. The IRS allows you to deduct a fair market value for your used clothes if you itemize your deductions on your tax return. Donating your used clothes can help you get a larger tax refund.
Instructions
1. Choose an organization to receive your donation. To use your donation as a tax deduction, you must donate to an IRS-approved organization. Most religious organizations and nonprofits qualify, but if you aren't sure, check with your organization of choice to find out if it has tax-exempt status, or see the list of qualified organizations on the IRS website.
2. Inspect and clean the clothing you wish to donate. Your clothing should be in good used condition. In fact, since 2006, the IRS requires clothing be in good condition for you to claim the donation as a tax deduction.
3. Determine the value of your donated clothes. Some organizations, such as The Salvation Army, provide guidelines to help you figure out how much your old clothes are worth. Use their valuation guide or a similar tool provided by a tax provider, such as the Turbo Tax program ItsDeductible. (See links to both in the Resource section.)
4. Make a list to document and describe your donated clothing and its value. If the value of your donation exceeds $250, you will need to get a statement from the recipient organization that confirms the value of the items and also states that you did not receive any goods or services in exchange for your donation. You are not required to attach the statement to your tax return, but you should keep it for your records in case of an audit.
5. Get a receipt from the organization after making your donation. If your organization does not have a standard receipt form for donations, have it sign a copy of the list you made as acknowledgement of the value of your donation. If you donated any item that exceeds $500 in value, you will need to complete and attach Form 8283, which requires a signature from the charitable organization. Form 8283 also requires an appraisal for your item and a signature from the appraiser.
6. Add your clothing donation to your itemized deduction worksheet. When completing your taxes for the year, add the value of your clothing donation to Form 1040 Schedule A, line 17. If you had any item that was $5,000 or more in value, attach the completed Form 8283 to your return when you file.
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