It is only appropriate that you get the full income tax benefit allowed from any charitable donation that you make.

According to the IRS bulletin IR-2006-113, July 18, 2006 “For Tax Year 2003, individuals reported noncash donations valued at $36.9 billion. The largest number of donations reported on this form was for clothing, representing 48.0 percent of all donations.”

When we started using Intuit TurboTax with ItsDeductable which is a program that helps you calculate the value of charitable donations that have been made, we found out that we had been greatly underestimating the fair market value of thousands of dollars in clothing and other donations we have made over the years.  We have lost out on thousands of dollars in tax benefits.  Take advantage of the program and make sure that you get credit on your income taxes for all the charitable donations you make.  You must keep detailed receipts of your donations.

Tax laws are complex and changing.  With car donations for example, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale. Under new rules, the charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds.  Contact State Charity and IRS Officials When in Doubt — Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059.  They can also find IRS forms and publications at IRS.gov.   

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