I am cleaning out my closet before the end of December and taking it to the local helping hands store. When you deduct charitable donations of clothing at tax time, do you just guess at what they are worth? William Lewis, author of Cash for Your Used Clothing, says most people underestimate the worth of such items.
Before you donate, price each item against similar ones sold at the store where you drop them off. If you're in a 28% tax bracket, a donation worth $400 will earn you a tax deduction of at least $112. I have done this for the past two years and have saved on our income tax with a computer program, "It's Deductible".
By Bobbie G from Rockwall, TX
ThriftyFun is one of the longest running frugal living communities on the Internet. These are archives of older discussions.
How can I determine the fair market value for a car seat, infant swing, infant walker, and exercise equipment?
How can one best determine fair market value of vintage furniture (wicker) donated to charity?
How do I value clothing items I've donated throughout the year? I took pictures of each item for our records, but now I need to put a value to each item.
To help you determine your donations "fair market value", Goodwill provides a "Value Guide" and offers average prices in their stores for items in good condition.
