Your 2018 tax returns won’t reward charitable #donations quite as much due to reforms included in the 2017 Tax Cuts and Jobs Act, which boosts the standard #deduction and makes itemizing less favorable for many taxpayers. But #donating used clothing, household goods, furniture, books and other items to ClothingDonations.org can at least encourage peace of mind and boost productivity by #organizing and #decluttering your home. Once you #declutter, you’ll have more time and energy to accomplish other to-dos such as exercising and cleaning, says Let’s Reach Success.
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Claim a Deduction for Your Donations
When you #donate a substantial amount of used goods such as clothing, housewares, furniture, books and other items to ClothingDonations.org, you can claim a charitable deduction on your federal 1040 form if you itemize. The Internal Revenue Service (IRS) allows taxpayers to deduct the fair market value for such goods — an estimate of what a buyer might pay for the used goods based on condition. ClothingDonations.org will provide you with a receipt for your #donation upon pickup, but you must estimate the value of the goods donated according to IRS Form #8283 to take a deduction.
Donating Clothing, Money Helps Save on Taxes
If you want to deduct contributions of used goods made to ClothingDonations.org, the value of the deduction is approximately equal to whatever the goods’ fair market value was at the time of the donation. “You should clearly contribute, rather than throw out, old clothes, furniture and equipment that you no longer use,” Charity Navigator says. Be sure to get a receipt, however, if you plan to claim donations of used goods as a tax write-off, and if you donate money directly, the IRS will require a canceled check, credit card statement, bank statement or a written acknowledgment from the charity as proof.
Filing Is Key to Organization of Tax Documents
To get your tax documents organized as a small business owner, create a desktop filing system that’s within easy reach of your workspace, says A Bowl Full of Lemons. Label folders with headers such as “Income” and “Taxes Paid,” and also create a folder for every category of deduction you plan to itemize, such as business travel, office expenses and charitable donations. And remember that your donations of lightly used clothing and household goods made to ClothingDonations.org are fully tax-deductible, since proceeds help fund veterans’ programs. Save your receipts!
Donations Equal Deductions
When you donate used clothing and household items to ClothingDonations.org, the Internal Revenue Service allows you to deduct the fair market value (FMV) of the items on your income tax return. FMV is the amount you can reasonably expect people to pay for used clothes and other items in secondhand stores; tax preparation software programs such as TurboTax can help ascribe a value to many common items.