For taxes, what amounts do you add up for clothes donations?

[ngt]

Got this bag on my door with a tag for a tax deduction. We are donating 12 nice polo shirts, 5 nice t-shirts, a pair of new jeans, a $50 maternity shirt worn once, and a box of about 40 baby outfits. I said like $50, because it's just used close, but my wife wants to add it all up at like $5 per shirt and $2 per baby outfit. Just wondering what folks thought. What's the normal amount for this type of thing? Or do you guys just donate this stuff for free and chalk it up as a good deed?

thanks

 

[rbh]

Re: For taxes, what amounts do you add up for clothes donations?

WOW, used clothes can be used for a tax right off?

 

[rockyrude]

Re: For taxes, what amounts do you add up for clothes donations?

We donate to various organizations through the year, last few years the write off was $400 without reciepts so that's where I let it ride.

 

[WIMUSKY]

Re: For taxes, what amounts do you add up for clothes donations?

OP, your last statement....... Even as a tiny business owner I don't right off everything I could legally. I don't want the IRS looking at my tax return with a fine tooth comb and having them show up at my doorstep. Besides, keeping track of "everything" would drive me nuts....... I error on the IRS side. Less stress that way......

 

[Fishing Dude too]

Re: For taxes, what amounts do you add up for clothes donations?

Then they are not donations, selling them with someone else paying the bill.

 

[colbyt]

Re: For taxes, what amounts do you add up for clothes donations?

In the event of an audit the itemized list is your best friend. Your wife is correct. The instructions say something like fair market value. If you want to be 100% safe go to the closest Goodwill store and see what they are charging for the items they are selling. There prices tend to be a bit lower than garage sale prices but the latter might be hard to prove should you need to do so.

OTH your chances of an audit are small unless you get greedy with the deductions.

To answer the other part, I don't bother because without home interest I don't have enough to itemize.

 

[jkust]

Re: For taxes, what amounts do you add up for clothes donations?

The gov publishes a lengthy list of values to use for everything you can think of. This is so unbelievably commonplace and I wouldn't worry for a New York minute about an audit where these types of charitable donations are concerned. The receipts you receive from the many, many orgs that come to your door to pick up your stuff are blank and usually the date is written in in pencil. The values in the list the gov puts out annually are shockingly high for stuff. I try to snap some pictures of the things we donate.

 

[matt167]

Re: For taxes, what amounts do you add up for clothes donations?

There is a certain amount you can write off without question. $250 or something like that, but it's best to have donation papers and write off that value. As said, Goodwill, Salvation army, thrift shop type stores will all write up donation receipts, most leave them blank because they practically work for free anyway.

 

[korygrandy]

Re: For taxes, what amounts do you add up for clothes donations?

Shockingly High is right. You can almost donate at full value.

I believe an example, for sweatpants it's like $10-15 , dress shirts are like 20, dress pants are like $30.

The government also allows you to deduct expenses occurred while looking for a new job, ie new suit, gas mileage for interviews etc.


One reason I donate to charity, and certainly not the most important, is I feel if I don't donate some of my money, I will just blow it on frivolous stuff that doesn't even help myself so why not help someone else.

 

[smclear]

Re: For taxes, what amounts do you add up for clothes donations?

Here is a list from the goodwill website showing valuation of donated clothing.

http://www.goodwill.org/wp-content/uploads/2010/12/Donation_Valuation_Guide.pdf

 

[blouderback]

Re: For taxes, what amounts do you add up for clothes donations?

I generally scatter my clothing, furniture, and other household donations among several different charities, and keep the donation estimates under $200 each, even if I think it may be worth more. I keep the reciept, which I fill out myself, but at least it's some sort of proof that I actually donated goods.

 

[jkust]

Re: For taxes, what amounts do you add up for clothes donations?

I generally claim the full amounts but we are also usually in the top 1% most years so it is relative.

 

[JRJ]

Re: For taxes, what amounts do you add up for clothes donations?

Being in the bottom 1% most years, we just donate......

 

[DayCruiser]

Re: For taxes, what amounts do you add up for clothes donations?

I saw on the CNN this morning that if Congress and the Prez can't come to a budget agreement then all the tax cuts will expire. Average increase in taxes will be $2000 per household. So we all better find some more write offs

 

[JB]

Re: For taxes, what amounts do you add up for clothes donations?

I occasionally take a load of stuff to Goodwill. Most of the time they give me a receipt with their estimates. Being very low income, I seldom gain anything by claiming charity donations so I don't.

 

[matt167]

Re: For taxes, what amounts do you add up for clothes donations?

Neither do I. Donate all the time, but never even get the receipt. I do hit up their record collection while I'm there. $.99 album and some are really nice. Only thing I don't like is, they consider a record an 'album'. I get by paying $.99 for 2 and 3 disc albums, but an album box set, I have to check to make sure everything is there and then consider If I want to pay $5-10 for it. 90% of my collection has come from thrift shops, the other 5% has come from Ebay and a couple lawn sales

 

[bruceb58]

Re: For taxes, what amounts do you add up for clothes donations?

On Form 8283 Column H is where you put the "Method used to determine the fair
market value". My tax software tells you to put "Thrift shop value".

Based on your gross income, there is an amount for charitable donations that sets a flag for the IRS. Most tax software tells you what that level is.

 

[jkust]

Re: For taxes, what amounts do you add up for clothes donations?

The orgs set up dates and come to the house to pick up stuff several times a year. We donate heaps of stuff every year. The overall tax savings isn't much but when the tax bill amount is a second home with a couple new cars thrown in every little bit helps.

 

[bruceb58]

Re: For taxes, what amounts do you add up for clothes donations?

I generally claim the full amounts but we are also usually in the top 1% most years so it is relative.

Top 1% is $1.3 Million. I would hope you wouldn't have to worry about it

 

[Tim Frank]

Re: For taxes, what amounts do you add up for clothes donations?

I generally claim the full amounts but we are also usually in the top 1% most years so it is relative.

Strange that about 90% of the people on the internet seem to be in that top 1%.