Why Do Auto Donations Require a Social Security Number?

Car donation write-offs are no longer fair market value, but charity resell price.

Donating that old car sitting in your driveway to charity may be a tax write-off for you, but only if you follow the guidelines and provide the necessary documentation for the tax man. For that, you need to provide your Social Security number.

Charity

Your selected auto-donation charity must be 501(c)(3) tax-exempt. This is a federal designation classifying your charity as a nonprofit. What this means for you is that you will still need to provide your nonprofit with your Social Security number for tax reporting purposes.

Privacy

Ask the charity if your Social Security number will be maintained in a separate database for privacy's sake. You don't have to provide your number, but you cannot claim your car donation on your taxes if you do not.

Owners

You will need the Social Security numbers of anyone listed on the title prior to donating your vehicle.

Tax Reporting

Your charity will use your Social Security number as your unique identifier in its own tax reporting. When you send in your receipt with your tax form, your donation can be reconciled with your charity's records as a valid donation.

Itemize

Itemize your auto donation in order to receive the deduction. If you don't itemize your taxes, you can't claim the donation as a deduction. Attach your charity's sale receipt and IRS Form 1098-C, "Contributions of Motor Vehicles, Boats, and Airplanes" to your tax form. Without the receipt, 1098-C, Social Security number and itemization, you cannot claim your deduction.

References

• Edmunds: Does Charity Car Donation Still Make Sense?
• Vehicles for Change: Car Donation FAQs
• Internal Revenue Service: IRS Urges Care for Car Donations