Is My Car Donation Made in New Hampshire Tax Deductible?
New Hampshire residents can give their car to state and national charities for a tax donation, but they must do their homework first to make sure their preferred organization counts as a charity, and they have the appropriate paperwork to prove the donation come tax-time. These charitable deductions occur on the federal, not state tax.
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Types
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Auto donation is deductible on your federal tax forms, such as a 1040. New Hampshire residents who donate a car to a registered charity can claim this on their federal tax forms and receive tax benefits. There is no special state incentive to donate cars. New Hampshire residents can also give their car to national or out-of-state charities; they are not limited to in-state charities for donation.
Prerequisites
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To make sure you get your donation deduction, you must give to a 501(c)3 organization. Most organizations will state this on their Web pages or in their literature; but if you're not sure, the IRS provides a charity look-up service (see Resources). Religious organizations, like temples and churches, might not have a 501(c)3 status since they aren't required to file for one, but they still count as "charities" for car donation purposes. If you have any questions, ask before you commit.
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Paperwork
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When you prepare your taxes, you need to present paperwork that certifies your donation. If your car is worth less than $250, you do not need a receipt; otherwise, you'll need a receipt from the charity showing your donation amount. If your donation was more than $500, you need to complete a special tax form, Form 8283. For lesser amounts, you can just use the 1040 or equivalent form.
Considerations
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New Hampshire residents need to transfer the car title to the charity at the time of donation. Transferring the title signifies that the car no longer belongs to you, it belongs to the charity. If you're missing your auto title, you can get a replacement title from the New Hampshire Department of Motor Vehicles. If the title is not in your name, you cannot legally donate the car.
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References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
