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Used clothing and other personal items are usually worth far less than the price you paid for them. Valuation of items of clothing does not lend itself to fixed formulas or methods. The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value.
You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. See Deduction over $500 for certain clothing or household items, later.
For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return. " You have to itemize in order to take advantage of your donation as well. If you are considering to itemize first fill out schedule A (where donations are recorded) and see if your total deductions are greater than the standard deduction."The 2009 standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350).
Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. " source: I did find a goodwill base guide @ goodwillsew.com/page.asp?dbID=295 First amount is for adults, 2nd for children. Use this is a guide but if in new condtion you could deduct more.
Shirt 2.99 1.49 Sweater 4.99 2.99 Sweatshirt 3.99 2.99 Blazer or Sport Coat 4.99 Suit 6.99 4.99 Jog Sets 6.99 4.99 Pants 3.99 2.99 You can always inventory this amount by buying an add on to tax software. In the past I've used turbo tax. Make sure to clean out that closet by year-end.
Value of items goes by sales price of items..if you have the org receipts fo the items than you are set. Lets say you do not. Than if you can get the good will to give some form showing what they sold for than that would work also.
If you donate property to Goodwill or another charitable group, you are allowed to deduct "the fair market value" of the property at the time you donated it. For clothing, you may only take a deduction if the clothing is "in good used condition or better. " You should keep a written record of what you donated; a receipt from Goodwill certainly helps in case of an audit.
You can enter the value of your donation on Line 17 of IRS Form 1040, Schedule A. See page A-8 of the 1040 instructions (linked below) for more complete information.
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