How do I track Goodwill donations for tax deduction purposes?
March 31st, 2010I’ve never tracked Goodwill donations for tax deductions and I have no idea where to start…
What are the things I need to do?
I’ve never tracked Goodwill donations for tax deductions and I have no idea where to start…
What are the things I need to do?
Replys
First, take pictures of the items you are donating. The forms that Goodwill hands out are signed, blank forms. They don’t even look at what you are giving them. The IRS is starting to crack down on non-cash donations, so having proper proof is key.
Second, write down as many of the items as possible on the donation slips when you get them, or attach a list to the slip.
Generally, I take the "Thrift Store Value," which is the amount the store will be selling those gifts for. If possible, write down on your list that you attached to the slip about when you bought the items and how much you paid for them originally.
Finally, remember to get an address of where you dropped off the items.
You will need all of this to fill out form 8283 for non-cash donations as part of your tax return.
Get receipts for the items you donate. Figure out a fair market value for them based on what a Goodwill store sells that type of items for.
You need a receipt from them as the first step.
Next step you need to determine the value of your deductions to claim the refund.
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