Donors can find a link to the Goodwill tax-deduction guide on the Goodwill website, reports Goodwill Industries International. From the Goodwill.org main page, donors can click on Donate Stuff to Goodwill and scroll down to Taxes and Your Donations. The tax-deduction guide has estimates based on Internal Revenue Service guidelines for donations of clothing and household items.Continue Reading
To be eligible for tax deductions, clothing, furniture, electronics, appliances and other household items must be at least in good used condition, stipulates the IRS. Taxpayers can deduct items in less-than-good condition only if a qualified appraisal values them at over $500. The guideline for determining the value of most used items is fair-market value, which is the price a willing buyer and seller would exchange for the items. For deduction purposes, taxpayers should value donations of clothing and household items at prices people pay for such items in thrift shops such as Goodwill.
It is important for donors to get a receipt from donation attendants when they deliver donated items, according to Goodwill Industries International. Additionally, donors should keep evidence of the value of donated household items such as receipts of original purchase, canceled checks and photographs, although they do not need to attach such evidence to their tax returns, advises the IRS. If donors overestimate the value of items they contribute to charity, they may be liable for penalties.Learn more about Taxes