Enjoy savings through tax deductions with your generous donation
Each year, many of us make donations of used clothing and other items to Goodwill. This is a great way to clean out the basement/closet but it can also lead to generous tax deductions. Take the following steps to ensure you get a proper tax deduction for your goodwill donations. You will be surprised at how it might add up!
Instructions
1. First, print off the current Goodwill Industries valuation guide that shows the categories of items and value ranges. The guide can be accesssed on this PDF:
http://www.goodwill.org/c/document_library/get_file?folderId=102123name=DLFE-2302.pdf
Should this link no longer be active, consult:
www.goodwill.org
2. Before you place your items in bags for delivery, grab a notebook and make a list of the items you have. Evaluate the quality of each item and next to the item on your list, put in the estimated value of the donation based on the provided guide. At the top of the page, put the date of delivery/pickup, number of bags, and the total value for all items. The total value will represent the amount for your tax deductions.
3. It is essential that you get a receipt from Goodwill that at least shows the number of bags you donated. Staple this receipt to your notebook page and add it to your tax file for the upcoming year. This list with receipt is proof of your donation for tax deductions next year.
4. If you are donating to Goodwill, take the time to get the tax deduction please. If you donate 20 men's shirts, your charitable donation would amount to between $40 and $160 based on quality. That will make a real difference when tax time rolls around!
Tips Warnings
Always be honest in your evaluation of item quality.
Consult with a tax professional if you need assistance.
Tags: deductions, goodwill, donations, number bags, total value
