Taxpayer asks:
So I have been seeing Turbo Tax ads on TV that say it will give you a value for any clothing items that you donated, and that you can claim those as a tax deduction. Now what I am wondering is how would I prove that I donated these? Charities don’t give you receipts. So is it okay for me to put down what I honestly gave away even though I have no proof? I gave 4 garbage bags full of clothes this year!
Taxgirl says:
This is one of those answers that you’re going to hate. The rules have tightened and you must have proof of donations of goods or cash (or cash equivalent) in order to take the deduction. To substantiate your deduction on your personal return, you need to obtain a receipt from the charitable organization which has:
* the name of the charity
* the date of the gift
* the location of the charity
* a detailed description of the property donated
If a receipt isn’t offered to you, just ask. If the organization is taking your money or items, they ought to be able to produce a receipt and it doesn’t have to be fancy. It can be the info above jotted down on a piece of money.
Most charitable orgs do have receipts on hand – you might just have to ask. For example, the Salvation Army in my neighborhood, has a bin for clothes in the parking lot in my neighborhood; the receipts, however, are just inside the thrift store. You dump your clothes and run in to pick up a receipt.
All of that said, don’t let the tax tail wag the dog. If you really want to help out and there’s no receipt (even after begging and wheedling), maybe the gift outweighs the deduction. Somewhere, some girl that didn’t have anything is thrilled to be walking around in your Lucky jeans and Gap sweaters…
There’s more good stuff – including valuation advice – here.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the Taxgirl!
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{ 5 comments… read them below or add one }
Also, assuming you’re a cash basis taxpayer.
True, but it’s rare that an individual taxpayer is not cash basis.
Yes, but he could also be speaking of a wholly owned corp.
Not in this instance. There was a second email that indicated that she would be opening her own shop in the future but not now. So this is a regular ol’ calendar year taxpayer.
okay, so I’ve actually got my receipts
, really, I do. But do I send them in with the return, make copies and send those or hang on to them in case/until the irs asks for them… somehow the idea of sending even copies seems well, stupid… and wasteful.