Going through my final pile of things to sell/donate! My sanity and life is nearly reclaimed!
Thrift store donations increase exponentially during the Holidays. This is a good time to clear out your home for the new year while giving thrift store valuable merchandise. You realize these donations are tax deductible as well, right? Let's see if you can save on taxes next year!
Here's how you can easily write off those thrift store donations:
1) Is it Worth it? Don't bother itemizing your deductions unless what you're donating for the season (or the year!) will be worth more than the Standard Deduction you receive from the IRS. You can get an estimate of what your standard deduction is on the IRS website.
1) Keep Track: With pen and paper in hand, keep track of what you're donating. You can divide what you're donating into groups like "kitchen supplies," "toys," and "clothing".
2) Estimate Value: Items must be valued at the amount the thrift store can sell it for or it's realistic yard sale value, NOT the retail value or what you paid for it.
3) Get a Receipt: Do not leave the thrift store without a receipt of what you've donated. The IRS can audit your return seven years after it's been filed, so keep your receipt on record for seven years. Yep, Tax Man's evil.
4) File it: Attach IRS Form 1040 Schedule A to your Tax Return to claim your deductions.
Choosing the Right Store: My main concern with donating is choosing the right organization. We've had discussions on the site about how we feel morally about stores like Goodwill raising prices when they're known as providers for the needy and Salvation Army being firmly against the LGBT community. I prefer to find indie thrift stores to donate, but I'd love for us to discuss...
Where do you feel is the best place to donate to? How do you determine which thrift store is good to make donations to?
