April 15 will be here before you know it. As you gather your documents for tax prep, remember, if you itemize deductions on your federal tax return, you may be able to claim charitable deductions for items you donated.
That’s right, you may be able to get a tax break for generosity. According to the IRS, taxpayers can deduct the fair market value of clothing, furniture, shoes, household goods or other items they donated. Fair market value is the price a buyer would be willing to pay for the item and is based on the condition of the item. It’s illegal for charities to tell you what your donations are worth, but you can determine the fair market value of your items by consulting a tax advisor in your area or referring to the guides available from the IRS.
Additionally, these guides can help you figure out which organizations qualify for charitable contributions deductibles, how much you can deduct, what records and receipts you need, and more.
When making a monetary donation using cash, check or credit card, make sure you keep a copy of your receipt with the date, amount and name of organization, just in case of an audit.
Non-cash donation regulations apply to deduction claims of more than $500 of clothing, furniture, and more. Non-cash claims of more than $5000 (such as in the case of a donated vehicle) require additional documentation that can be found on the IRS website under Tax Forms.
If counting a donation for which you received a gift in return, remember that your donation is the amount you gave minus the merchandise you received.
Finally, when calculating donations, be sure the donation took place in the tax year for which you are filing. While you can try to dig up your 2018 receipts, don’t rush to donate a bunch of stuff now to get a tax break this year. But do keep in mind that a donation now will benefit you next April.
Whether you’re simply tidying up your space or looking for a tax break for next year, let 9Pickup’s home pickup service take your unwanted or unused Christmas decorations, clothing, jewelry, furniture, books, toys and more. Call 1-888-9-PICKUP or fill out the convenient online form to schedule your pickup today.