Donating items is a great way to get rid of things that you no longer want or need without filling the landfills with junk. Approximately three-quarters of solid waste that is disposed of is recyclable, however less than one-third is actually recycled, with about 12 million tons of textile waste and old clothes being thrown into the garbage each year. This accounts to almost 82 pounds of solid or textile waste per person being tossed into the landfill each year. It’s easy to see why donating is important, but for someone who has never donated before this can leave them asking themselves “where can I donate clothes so that others can benefit from them?” Charitable donations do help those in need and those looking for bargains, but they can also benefit you because of the tax benefits. So while asking yourself “where can I donate clothes,” also ask yourself “How can I get the most tax benefits from my donation?” Read below to get tips to maximize tax deductions from clothing donations and other donations.
Lists
If you are donating many things at one time, make a list of the clothing items you donated. Make your list as detailed as possible. Attach this list to the receipt that you get from your donation. Keep this list and the receipt with you tax documents so that if any questions arise during tax time you have necessary documents supporting your donation.
Valuation
Some charities have a tool on their website where users can get the value of items that they want to donate. This helps when determining how much of a deduction you can take and keeps you from claiming too small of a deduction at tax time. Use these tools to calculate the total of your donation.
IRS
If you want to most benefit from your donation make sure you donate to an IRS-qualified charity. This is the only way that you can claim a tax deduction from your donation. Choose IRS-qualified charities and use the valuation tool when asking yourself “where can I donate clothes,” and “which charity is the best?”
Choosing where to donate is just as important as choosing what to donate. With a little research you can find the perfect charity and maximize your tax benefits while donating. Skip the trash can and carry that trash bag to a donation center to help others, and help yourself come tax time.