Goodwill Industries is a tax-exempt organization, so most donations to the charity are deductible, notes the IRS. On Schedule A of Form 1040, enter the donations you have made as itemized deductions Use the receipts provided by Goodwill to record the type of donations and the value of each.
Enter the itemized deductions for donations made with different methods separately. For any donations made with cash or checks, enter the monetary value of the donation. The IRS requires a receipt from Goodwill for any donations that exceed $250. The receipt must indicate whether or not Goodwill provided any goods or services in exchange for the donation, explains the IRS.
Donors also need to estimate the market value of your noncash donations or have them appraised, states the IRS. Goodwill provides a donation valuation guide to help determine the value of such donations. The guide is available at Goodwill.org.
If the total value of your noncash donations exceeds $500, then you must fill out Form 8283. This form along with its instructions is available on IRS.gov.Learn more about Taxes