Spring Cleaning? The “Need to Knows” of
Donating to Goodwill and Your Tax Form
1 April 2018
Julianne Shenk
JBS Nonprofit Consulting
It is that time of year, the “time to spring
clean and take your donations to Goodwill” time of the year. I get asked a lot if
donations to Goodwill are tax deductible.
In short, if you itemize deductions on your FEDERAL tax return, you may
be entitled to claim a charitable deduction for your donations to Goodwill. According
to the Internal Revenue Service (IRS),
“a taxpayer can deduct the fair market value of clothing, household
goods, used furniture, shoes, books, and so forth.” [1]
As for “fair market value”, per the IRS, Fair Market Value is defined as:
"the price at which the property would change hands
between a willing buyer and a willing seller, neither being under any
compulsion to buy or to sell and both having reasonable knowledge of relevant
facts.” [2]
Value depends on the condition of the item. Remember, by
law, a charitable organization cannot tell you what your donated items are
worth, you must value the items yourself.[3]
The latest IRS Donation Value Guide can be found here: https://www.amazinggoodwill.com/hubfs/docs/Donation_Value_Guide_-100115.pdf
Consult the guide, asses the value of your donated goods and
document well. You will need this information when itemizing your donations on
your FEDERAL tax form.
Happy Spring Cleaning!
[1]
https://www.amazinggoodwill.com/donating/IRS-guidelines
[2]
https://www.irs.gov/publications Publication 561
