How to Value Donated Clothing for Taxes

Charitable contributions of property must be valued at a price which a buyer would be willing to pay. Generally, the value of used clothing is far less than the original cost, but some items hold more value based on quality and condition. You can estimate the tax value of donated clothing on websites or by visiting thrift stores or resale shops to see what similar items are selling for.

Instructions

1. Separate your clothing to be donated into higher priced and low cost items. The higher cost items mainly consist of expensive dress clothes such as men's and women's suits, dresses, evening gowns and coats.

2. Check the prices of low cost items at the local thrift store or online at Satruck or other valuation websites. It is up to you to assign an exact value to each clothing item based on the condition and your research.

3. Determine the value of more expensive donated clothing by checking on similar items for sale at quality consignment shops. The store manager should be able to give you a range of values for each category. Keep notes in your tax file to support the value you decide to assign each item.

4. Use Form 8283 from the Internal Revenue Service (IRS) website if the total value of non-cash contributions exceed $500 for the year. Complete the form and include it when filing your tax return.

5. Deduct the total of non-cash contributions in Schedule A of Form 1040 on the separate line for such donations. You don't have to send documentation, such as receipts from organizations to which you gave the items, with your tax return but keep them together in your tax file.

Tips & Warnings

• If the total non-cash contributions are significant, take photos of the higher priced to keep in your tax file.

• Any single clothing item valued over $500 should have a written appraisal.

Resources

• Access Form 8283 Noncash Charitable Contributions.
• Find values for donated clothing.