How to Use Finance Software to Value Donated Clothing for Taxes

Every year when you do your taxes you can deduct the value of clothing you donated to charity. Most people just decide on a figure and they usually underestimate severely. Of course, if you over estimate you can wind up owing taxes. To eliminate error, follow this guide to using finance software to get the right value for your donated clothing.

Difficulty: Moderate

Instructions

1. Create an account at intuit.com for Itsdeductible finance software. Enter your email address, the user id and password you want, password hint and answer to the secret question you pick.

2. Enter your full name, filing status and estimated income range on the next page. Now click "I have read and agree to the terms of the license agreement."

3. Pick "Clothing, electronics and other household goods" from the items on the next screen. Press the "Add" button next to these words.

4. List the name of the charity you donated to and the date of the donation. Press the "Continue" button.

5. Choose the category "Clothing, footwear and accessories." Type in the item you donated—for example, "Shirts," and press "Go."

6. Look at the list and choose the item that you donated—for example, "Men's clothing > shirts." Click on that link. A list of types of men's shirts appears with the value for taxes of high, medium or low. Fill in this form and press, "Add items to my donation."

7. Press, "Add more items" and repeat steps 3 through 6. Continue until you have added all of your donated clothing. The finance software will now give you your grand total to put down for your taxes.

Resources

• Use Itsdeductible Finance Software to Value Donated Clothing.