As a family grows it purchases large amounts of clothing, which members eventually outgrow. Clothing may appear to be unfashionable after a couple of years. Here is an Internal Revenue Service (IRS) tax deductible clothing donation checklist.
“Get a Receipt and Tax ID Number from Charity”
Church groups, charities and 501(c)3 non-profit organizations all benefit from tax deductible clothing donations. The IRS requires donated items to be in good condition. The charity is required by law to give you a receipt for items above $250.00 in value.
Make a tax deductible clothing donation checklist including name of item, fair market value, when acquired, when donated and condition. You will need this information to qualify for the tax deduction. Items worth more than $5,000.00 in value require a professional appraisal. Request the non-profit organization’s Tax ID Number or Employer Identification Number (EIN).
“Donated Clothes Help the Needy”
Taxpayers will need to fill out the Internal Revenue Service “United States Citizen Federal Individual Tax Form” 1040 or 1040NR for “Non-Resident Aliens” to itemize deductions. If your itemized deductions are higher than your standard deduction, then this process can save you money. Fill out the 1040 Form until you get to the “Tax and Credits Section” Line 40 for “Itemized Deductions.”
The “Form 1040 Schedule A” is used for listing your actual itemized deductions. On this schedule, you will see a section marked “Gifts to Charity” from lines 16 to 18. Cash, vehicles and clothing are the primary charitable contributions. Line 17 is for clothing donations.
Follow the instructions for donations over the $250.00 or $500.00 amounts. To list the clothing details, you will need to fill out Form 8283 “Noncash Charitable Contributions.” For donations worth more than $500.00, taxpayers must attach Form 8283 to their Form 1040 or 1040NR. Complete your “Itemized Deductions” from Schedule A, follow the instructions to determine which figures to transfer to the Form 1040.
The Form 8283 Part I is entitled “Information on Donated Property.” There are columns for the following: charity recipient name, clothing description, date of donation, date acquired and fair market value. The fair market value is the price for clothing when the buyer and seller have reasonable knowledge of the clothing characteristics. If you received a benefit, like a signed autograph or event tickets, you can only deduct the amount exceeding the fair market value of the benefit received.