How to List Goodwill Donations for Tax Deductions

Making a donation to Goodwill can help reduce your tax liability at the end of the year as it falls under the charitable donations tax deduction. This deduction is an itemized deduction, which means that if take it you cannot claim the standard deduction and you must file your taxes using form 1040. If your donations exceed $500, you must also complete form 8232 documenting the donated items. If your donations are less than $500, you should still retain your receipt in case the IRS questions your tax return.

Things You'll Need

• Form 8232
• Schedule A

Instructions

1. List the items that you donate to Goodwill before make making the donation.

2. Determine the value of the donations using Goodwill's valuation guide. For example, if you donated two men's suits in great condition, you would be able to claim $60.

3. Get a receipt from Goodwill when you make the donation verifying your list. This verification does not need to be attached with your tax form unless your donation is more than $5,000.

4. Complete IRS form 8232 Section A for donations between $500 and $5,000. For donations over $5,000, complete Section B.

5. List the value of your deductions on line 17 of Schedule A. This amount will reduce your taxable income, thereby lowering your tax liability.

References

• IRS: Charitable Donations
• Charity Guide: Charitable Donations to Salvation Army or Goodwill

Resources

• Goodwill: Valuation Guide for Goodwill Donors
• IRS: Schedule A
• IRS: Form 8283