You can claim a goodwill donation on your taxes by itemizing your deductions on Schedule A of your tax return and using a qualified appraisal for donations over $5,000.
To get started, gather your receipts or records from Goodwill. This includes the date of the donation and a brief description of the items you gave.
Make sure to assess the fair market value of the items. The IRS allows you to deduct the fair market value, which is generally what you could sell the items for in a thrift store.
For donations under $250, a simple receipt will suffice. For donations between $250 and $500, you need a written acknowledgment from Goodwill stating the items donated and that you received no goods or services in return.
If your donation is over $500, you’ll need to fill out Form 8283. This form requires you to list the items donated and their appraised value.
For donations over $5,000, you must get a qualified appraisal and attach it to your tax return. This appraisal must be conducted by a qualified appraiser within 60 days before your donation.
Lastly, remember to keep copies of all documents in case the IRS asks for them later. Good record-keeping is key to ensuring you can substantiate your donation.
How much can I deduct for my goodwill donations?
You can deduct the fair market value of the items you donated, which is generally what you could sell them for in a thrift store.
Do I need a receipt for goodwill donations?
Yes, you need a receipt for donations over $250, and it’s a good idea to keep receipts for all donations for your records.
What if I donated items worth over $5,000?
If you donated items worth over $5,000, you must obtain a qualified appraisal and fill out Form 8283.
Can I claim donations made to Goodwill in previous years?
No, you can only claim donations made in the tax year for which you are filing your return.
What types of items can I donate to Goodwill?
You can donate clothing, furniture, household goods, electronics, and many other items, as long as they are in good condition.