How to Get a Clothing Donation Tax Deduction - ToughNickel - Money
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How to Get a Clothing Donation Tax Deduction

I enjoy giving advice to others from my own personal experience—including giving blood.

Few things are more satisfying than a freshly cleaned out closet, but where do your clothes go? If you cannot pass off old clothing to friends or family, you are probably considering either throwing them away or donating them. You should donate! Not only can your clothing help others, you can get a tax deduction. What is not to like about that?

Below I'll guide you through the process of donating your clothing in such a way that you can claim that donation on your federal tax return.

You'll need to fill out this form if the total value of your clothing donation is greater than $500

You'll need to fill out this form if the total value of your clothing donation is greater than $500

Step 1: Weed Out the Bad Stuff

If you want your clothing donation to qualify for a tax deduction, it must be of good or excellent quality—no rags for the poor! A while back, clothing that was deemed to be in "fair" condition was considered OK, but those days are over.

To assess whether your old clothes are up to snuff, check to see that the clothing you are thinking of donating is:

  • Clean
  • Undamaged
  • Free of holes and tears
  • Not wrinkled

Basically, if you would feel uncomfortable giving an article of clothing to a friend or relative, you should probably think twice about donating it to charity. Nobody likes the jerk who unloads trash bags full of rags in front of Salvation Army stores.

Step 2: Find a Qualified Organization

If you want to donate clothing and have it count for tax deductions, you must donate to a 501 C(3) nonprofit organization. The major charities that take clothing donations and count when it comes to tax credits include:

  • The Salvation Army
  • The Goodwill
  • The Military Order of the Purple Heart

The Salvation Army and Order of the Purple Heart will actually pick up clothing donations, which is very convenient!

If you have shoes to donate, consider giving to Soles4Souls, which is a nonprofit organization that accepts shoes that they, in turn, give to needy children and adults. You might also consider giving used clothing to women with special needs by donating to Hand-Me-Down Used Clothing for Women.

Step 3: Calculate the Value of the Goods You Donate

Before making your donation, calculate the value of the clothing items you are donating. Below is a helpful table that can help you determine the general value of some of the most common articles of clothing that you may donate.

Donated Clothing Values

ItemLow-End ValueHigh-End Value

Women's Blouse or Men's Shirt

$2.50

$12.00

Pants

$3.50

$12.00

Sweater

$2.50

$12.00

Overcoat

$15.00

$60.00

Belt

$3.00

$8.00

Suit

$15.00

$60.00

Jacket

$7.50

$25.00

Shoes

$3.50

$25.00

Necktie

$3.00

$8.00

Step 4: Get a Receipt

It is always a good idea to get a receipt when you donate something, and if the total value of what you donate is greater than $250, you will have to provide a receipt in order to have it count for tax purposes. If you are not given a receipt, you must have a written acknowledgement from the organization to which you donated proving that you did indeed make the donation.

Hold on to your receipts as the year progresses and keep them all in one place so that they're easy to find when tax season rolls around!

  • Schedule A
    This is the Schedule A part of Form 1040; it allows you to make itemized deductions on taxes and interest paid, medical expenses, theft losses, and other things in addition to gifts to charity.
  • IRS Form 8283
    This is the form you will need to fill out if the total value of your noncash donations over the year is greater than $500.

Step 5: Fill Out the Right Forms

If the total value of your donations made throughout the year is less than $500, all you need to do is share the total value of those donations on line 17 of your Schedule A. This is one of the backup forms of the 1040 long form, which is the more detailed alternative to the 1040-EZ, and it allows you to make itemized deductions on things like medical expenses, interest paid, and job expenses.

If your noncash donation total has a value greater than $500, you will need to file the IRS Form 8283 with your tax return. This is a special form for noncash charitable contributions and is fairly simple. All you have to do is provide information on the property you donated, the name and address of the organization(s) to which you donated, and dates of your various contributions.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Comments

Kattonic Cats on June 02, 2012:

My husband died in March. If I donate all of his clothing, shoes, coats, etc. it's going to add up to more than $500, even if I pick the "low price". Do I really have to call in an appraiser? Someone told me I could just list all the stuff and take pictures of what I was donating as proof, is that okay for the IRS?

Tammy from USA on January 01, 2012:

I will have to keep this in mind next time I am doing my spring cleaning. Thanks for sharing this helpful information.

Sinea Pies from Northeastern United States on January 01, 2012:

Our school has a Goodwill Bin. We keep forms in the school office for anyone who wants one...or they can just print it out themselves online.

mljdgulley354 on January 01, 2012:

We have Goodwill Bins around the city with attendants who will fill out the donation form. Great hub

Simone Haruko Smith (author) from San Francisco on December 27, 2011:

Wow, that's really good to know! Thanks sylvar deskins!

sylvar deskins on December 24, 2011:

Also not the SPCA (although I am sure they may accept them too) but the Animal Care & Control in San Francisco (and I'm sure tons of other cities) accepts old sheets and towels for rags and bedding for the animals they house. Its a great donation to make and it just has to be clean and in a bag.

Simone Haruko Smith (author) from San Francisco on April 28, 2011:

I'm glad my notes were of service!

tirelesstraveler on April 28, 2011:

The Tax man told us to itemize our none cash donations. Thank for showing me how.

Simone Haruko Smith (author) from San Francisco on February 08, 2011:

Thanks, ezhang!! Well, you could always wash and iron out those things that are wrinkled, and they'll be good to go. If an old shirt or something is totally shredded and filthy, it might not be good to donate, but it sure will make a great cleaning rag!

Edward Zhang from Bay Area, CA on February 08, 2011:

Very informative hub! I learned a lot about the donation process for clothing.

One question: what about the clothes that cannot be donated? The ones that are wrinkled, etc. Seems such a waste to just throw it away...

Simone Haruko Smith (author) from San Francisco on February 01, 2011:

Whoah! So it's a sort of matching program? That's the coolest!!

hartingale on February 01, 2011:

It's clled gift aid in the UK and it means every donation you make to charity has 20% of its value is added on by the treasury.