Can I claim my car donation as a tax deduction?
Yes. MERS/Goodwill is a 501(c)(3) nonprofit charity organization. Contributions, including car donations, may be claimed as deductions on your federal tax return if you itemize on Schedule A of Form 1040.
How much can I deduct?
If you intend to claim a tax deduction of $500 or less, you will need to determine the “fair market value” for your vehicle and claim that amount. Goodwill will not notify the IRS of the sale price.
If you intend to claim a tax deduction of more than $500, you will be limited to the sale price that Goodwill receives for the vehicle. Goodwill is required to notify the IRS of the sale price if it is over $500. We will also notify you, the donor, of the sale amount.
Questions regarding a tax benefit should be directed to a tax professional or the IRS website. (link)
Where can I get more information?
Consult your tax adviser or refer to any of these IRS Publications on the IRS website: http://www.irs.gov
- Publication 4303, A Donor’s Guide to Vehicle Donations
- Publication 526, Charitable Contributions
- Publication 561, Determining the Value of Donated Property
- Form 8283, Noncash Charitable Contributions
- Instructions for Form 8283
Please contact us at your local Goodwill office, if you have any questions:
- [email protected]