How to Give Clothing Away & File on Taxes

Taxpayers who itemize their deductions using Schedule A of Form 1040 may deduct the monetary value of their cash donations or fair market value of their property donations to charities. To take advantage of the charitable-contributions deduction, taxpayers must donate their clothing to tax-exempt, qualified organizations. Taxpayers who donate clothing can refer to IRS Publication 561, Determining the Value of Donated Property.

Things You'll Need

• Receipts
• Schedule A of Form 1040
• Form 8283

Instructions

1. Choose a qualified charity to which you'd like to donate your clothes.

2. Determine the value of your clothing. As of August 2006, taxpayers cannot donate clothing and deduct the fair market value of their donation unless their clothes are in good condition.

3. Request a written acknowledgment from the charity to substantiate your donation. The IRS requires a written substantiation for donations exceeding $250. Even if your donation does not exceed the $250 threshold, obtaining a written receipt is generally a good idea, and charities routinely provide them, regardless of the donation value. Your written acknowledgment must include the date of your donation, a description of the clothing and if the charity paid you for your donation.

4. Obtain a qualified appraisal if the total value of your clothing donation exceeds $500. You may also donate one single item of clothing that is worth more than $500 if you obtain a qualified appraisal, even if it is not in decent condition.

5. File IRS Form 1040, Schedule A. You must itemize your tax returns or you cannot deduct your clothing donation.

6. Complete and file IRS Form 8283, Noncash Charitable Contributions, if your donation exceeds $500. Attach it to your Form 1040 and submit it with your form.

Tips & Warnings

• The IRS does not have a fixed formula for determining the fair market value of clothing. Typically, the fair market value of clothing is what a willing buyer would pay to purchase the article of clothing in a consignment shop.

References

• IRS.gov: Publication 526 (2010), Charitable Contributions
• IRS.gov: Eight Tips for Deducting Charitable Contributions
• IRS.gov: Topic 506 - Charitable Contributions
• IRS.gov: Publication 561 (4/2007), Determining the Value of Donated Property
• IRS.gov: Instructions for Form 8283, Noncash Charitable Contributions

Resources

• IRS.gov: IRS Form 8283, Noncash Charitable Contributions