How to Donate Clothes for a Tax Deduction

Making a charitable clothing donation can be a mutually beneficial act for you and the organization that receives your clothes. The IRS allows you to deduct a fair market value for your used clothes if you itemize your deductions on your tax return. Donating your used clothes can help you get a larger tax refund.

Instructions

1. Decide what organization you'd like to donate to. In order to use your donation as a tax deduction, you must donate to an IRS approved organization. Most religious organizations and non-profits qualify, but if you aren't sure check with your organization of choice to find out if they have tax exempt status, or see the list of qualified organizations on the IRS website.

2. Inspect and clean the clothing you wish to donate. Your clothing should be clean and in good used condition. In fact, since 2006 the IRS requires that any clothing you intend to donate is in good condition in order for you to claim the donation as a tax deduction.

3. Determine the value of your donated clothes. Some organizations such as The Salvation Army provide guidelines to help you figure out how much your old clothes are worth. Use their valuation guide, or a similar tool provided by a tax provider such as the Turbo Tax program called "itsdeductible". Links to both can be found in the resource section.

4. Make a list to document and describe your donated clothing and its value. If the value of your donation exceeds $250, you will need to get a statement from the recipient organization that confirms the value of the items and also states that you did not receive any goods or services in exchange for your donation. You are not required to attach the statement to your tax return, but should keep it for your records in case of an audit.

5. Get a receipt from the organization you are donating to. If your organization does not have a standard receipt form for donations, have them sign a copy of the list you made as acknowledgement of the value of your donation. If you have donated any single item whose value exceeds $500, you will need to complete and attach form 8283 which requires a signature from the charitable donation. Form 8283 also requires an appraisal for your item and a signature from the appraiser.

6. Add your clothing donation to your itemized deduction worksheet. When completing your taxes for the year, add the value of your clothing donation to form 1040 Schedule A line 17. If you had any item that was $500 or more in value attach the completed form 8283 to your return when you file.

Tips & Warnings

• Keep your receipts for any donations safely filed away in case of an audit.

Resources

• Salvation Army Valuation Guide
• Turbo Tax Deduction tool
• How to Claim Tax Credits
• How to Donate Cars