One of the itemized deductions allowed by the IRS is for donations, including clothing, made to qualifying charitable organizations. To claim itemized deductions, you have to forgo the standard deduction, so you should only claim itemized deductions if their total value exceeds the amount of the standard deduction. To claim a deduction for clothing, you must accurately value your donation and file Schedule A with your tax return. If the donations are worth more than $500, you are also required to file Form 8283.
Determine that the articles of clothing are in good used condition or better. This limitation doesn't apply to individual items worth more than $500, for which you must include a professional appraisal with your return.
Confirm that the organization to which you made your clothing donation is a qualified charity by checking the IRS's online database (see resources).
Assess what the donated clothing is worth, based on its fair market value. Some charities have a list of commonly donated clothes and their approximate values that can be used to guide your valuation (see resources).
Add the value of your clothing donation to the amount of any other gifts of property that you made to charitable groups during the year.
Report the total value of your tax-deductible donations on line 17 of Schedule A.
Complete Form 8283 (see resources) and attach it to your tax return if your deductions total more than $500.
Tips
For donations over $250, you need to have a receipt stating what you donated and what, if anything, you received in return for your donation.
References
Tips
- For donations over $250, you need to have a receipt stating what you donated and what, if anything, you received in return for your donation.
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Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."