Every tax season we hear the question: “I took some clothes and kitchen items to Goodwill, can I write that off?”
If you itemize your deductions, that answer is yes.
Valuing Goods
By the time we meet for taxes it may be difficult to remember how many items you donated, the description of the items, and the total value donated for the entire year. So, we created a spreadsheet to help you track donated goods all year long.
Required Documentation
Non-Cash Donations Not More Than $500
You must keep written acknowledgment for each contribution which should include a description of the property and a statement that “no goods or services were received as a result of your contribution.”
Non-Cash Donations Over $500 But Not Over $5,000
Written acknowledgment PLUS the approximate date and cost of the property (different rules apply if the property was gifted to you).
Non-Cash Donations Over $5,000
Written acknowledgment PLUS a qualified written appraisal is generally required.
Remember to save the Goodwill or thrift store receipts recognizing the date of your donation. This spreadsheet, combined with your donation receipts, should make it easy to record and value your donations.