are contributions to goodwill tax deductible
IRS Guidelines. If you itemize deductions on your federal tax return, you may be entitled to claim a charitable deduction for your Goodwill donations. According to the Internal Revenue Service (IRS), a taxpayer can deduct the fair market value of clothing, household goods, used furniture, shoes, books and so forth. 1 in the case of a charitable contribution of money, regardless of the amount, a deduction is denied, unless the donor maintained a cancelled check, bank record, or receipt from the donee organization showing the name of the donee organization, the date of the contribution, and the amount of the contribution. You must itemize Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A. What you can deduct You generally can deduct your cash contributions and the fair market value of most property you donate to a qualified organization. It also explains what kind of information you must have to support the charitable contribution deduction you claim on your return. (Publication 561) To help you determine your donations fair market value Goodwill is happy to provide a “Value Guide” that offers average prices in our stores for items in good condition. Goodwill thrift stores accept donations of clothes, furniture, computers and much more provided they are in serviceable condition. If you itemize your deductions on your tax return, you can deduct these donations to Goodwill, making this a great way to support a good cause while decreasing your tax liability. Goodwill donations can only get you a deduction on your taxes if you itemize them. When you file your taxes, you can choose to either take a standard deduction, which is based on your age, marital status, and income, or an itemized deduction, which takes all of your deductible activity into account. To get a charitable tax deduction, your donations generally need to be made to a non-profit 501(c)(3) charitable organization. Donations to most churches and religious organizations give you a charitable deduction. Every non-profit organization (also called NPO or not-for-profit) is not necessarily a 501(c)(3) charity. A deduction for these contributions will be allowed only if the items are in good used condition or better. However, this rule does not apply to a contribution of any single item for which a deduction of more than $500 is claimed and for which you include a qualified appraisal and Form 8283 with your tax return. 3. Donate items that are in good condition. Both Goodwill and the IRS require that you donate clothes or items that are in good condition. Damaged, dirty, or worn-out goods may be refused by Goodwill and will not earn you a tax deduction. In fact, it can actually be against the law to try to donate items that you know to be in bad condition. IRS codes are complex. It's easy to make mistakes when determining the value of donations. If you get audited and can't substantiate the donation values on the your tax return, you're going to regret it. The donation values you'll generate comply with IRS fair market value guidelines.
Goodwill donations can only get you a deduction on your taxes if you itemize them.