Have bags of clothes i want to donate to goodwill. Is it really worth getting one of those tickets to claim on next years taxes? And if so how should I value my used clothes?
Turbo tax and several other tax software programs have actually made this an added on feature. So, while you don’t need to submit the ticket to the IRS with the taxes, the amount donated is deductible and probably more than you thought. It is not 5 cents per shirt it is actually more like 5 dollars per shirt. I would make a list and put it in with other papers that you keep, so that when you are doing the taxes next year, it will go faster. like 5 size 4 boys pants. 3 womens size 10 dresses. etc.
April 28th, 2010 at 8:18 pm
I always get the ticket. If you file taxes and indeed on claiming those donations, get the ticket. If you were to be audited, guess what? You would need that donation claim. I even know some accountants who will not add in verbal donation amounts for their clients. It needs to be on a ticket.
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April 28th, 2010 at 8:24 pm
Turbo tax and several other tax software programs have actually made this an added on feature. So, while you don’t need to submit the ticket to the IRS with the taxes, the amount donated is deductible and probably more than you thought. It is not 5 cents per shirt it is actually more like 5 dollars per shirt. I would make a list and put it in with other papers that you keep, so that when you are doing the taxes next year, it will go faster. like 5 size 4 boys pants. 3 womens size 10 dresses. etc.
References :
April 28th, 2010 at 8:47 pm
They will value your clothes. It is only worthwhile if you itemize your taxes. Hope this helps.
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April 28th, 2010 at 9:30 pm
Do you normally donate enough and have enough other tax deductions so that you are able to itemize deductions on your income tax? If so, then yes, it is worth getting one of the tickets.
I quit asking for receipts from non-profits for taxes because we never have enough deductions in order to be able to itemize and take more than the standard deduction. Even the year we had high medical bills because our insurance and medical spending account are taken out before taxes so they aren’t deductible.
If you aren’t sure, then yes, get the receipt. Goodwill probably has a better idea of the value of the clothes that can be deducted. You can’t claim what the item is worth new, you have to claim it as used and I think it is figured at 40% of the original cost. So, if you bought a jacket that cost $40 and then you donate it to Goodwill, the most you could claim on it is $16, and that is if it is in good condition.
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