Things You'll Need:
- Clothes to donate
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Step 1
Gather all the clothes you have that you no longer want or need. The IRS will only allow you to take a deduction for clothes that are in good or better condition, so discard any that are not.
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Step 2
Make a list of the clothing items you have. To value donated clothes for a tax deduction you will need to know the "fair market value" for these items. Wikipedia defines fair market value as "an estimate of what a willing buyer would pay to a willing seller, both in a free market, for an asset or any piece of property".
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Step 3
Look at items that are comparable to yours to value donated clothes for a tax deduction. Look on ebay or visit thrift stores to find out what they are selling for.
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Step 4
Use valuation lists to value donated clothes for a tax deduction. These are provided by certain charities. Go to the Goodwill and The Salvation Army sites (see resources for links) to see what donated clothing sells for. At Goodwill for example, the listing shows that a man's sweater will sell between $5.00 and $15.00. Value your clothing using the guidelines the lists provide.
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Step 5
Donate the clothes to a tax exempt charity. Make sure to get a receipt for the items for tax purposes. Include the donation on Schedule A of Form 1040, when you file your taxes.
Comments
musicdeb said
on 7/22/2009 good advice--we need all the tax deductions we can get...
5*
lifeengineer said
on 3/7/2009 Good article. I can use this information.
Pamelateda said
on 11/29/2008 How did you know I have three bags of clothes to donate? LOL Thanks for the information, I will put it to use!
MeganK said
on 11/28/2008 Great info, thanks!
Missikae said
on 11/24/2008 Good tips that I'll be using. Thank you.