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How much donation to Goodwill should i give so i can put it on my income tax return? |
How much donation to Goodwill should i give so i can put it on my income tax return? Whatever you want to give. But it will only do you any good if you itemize. If you take the standard deduction you get nothing for charitable contributions. The only thing though is that if you give cash you can only deduct up to 50% of your AGI and if there is any excess, it gets carried forward for future use, but has only a 5 year carryforward. If it's non-cash contribution (i.e. clothing) you can deduct up to 50% (30% for gifts of appreciated property) of your AGI, and there is another form (form 8283) you need to fill out if you give more than $500 in non-cash contributions. Also, due to a recent change in the tax laws, the clothing has to be in "good" condition or better to be deductible. If the non-cash deduction is more than $5,000 a qualified appraisal of the items must be obtained, and if the deduction is more than $500,000 (that would be a lot of clothing!) the appraisal itself must be attached with the return. If you don't have other itemized deductions and you are married I would say $10,000 plus how much you want as a write off. As long as you itemize, you can write off 100% of your donations (up to a certain amount). Anything over that amount will have to roll over to the next tax year. Usually you need at least $5000 for it to even matter and you have to itemize your deductions. You can get up to $5000 through various charitable contributions. The fair market value (what it will sell for at the Goodwill store) of anything you give to Goodwill (or the Salvation Army or other recognized charity) can be written off as a contribution. You have to have enough total deductions to exceed the standard deduction--$10,700 for a married couple in 2007, half that for a single--or there is no point in itemizing. With some limitations you can "write off" 100% of the FMV of your donations to Goodwill if you itemize your deductions. If you do not itemize on Schedule A you will not be aboe to take any deduction specifically for the stuff you give Goodwill. (Tax Deductions) What's New for 2006: Clothing and household items. You cannot take a deduction for clothing or household items you donate after August 17, 2006, unless the clothing or household items are in good used condition or better. You should read this... http://www.irs.gov/publications/p526/ar0... If your donation was $250 or more, be sure you get a receipt from Goodwill. If the amount of any single noncash contribution is greater than $500, you also must complete and attach Form 8283 on the long 1040 tax return, Noncash Charitable Contributions. And if your deduction is more than $5,000, the IRS may require you to get appraisals of the donated property. http://www.bankrate.com/brm/itax/news/20... Form 8283 http://www.irs.gov/pub/irs-pdf/f8283.pdf... |
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