STYLETHREAD -- LET'S TALK SHOP!

cc · Marc Jacobs

charitable tax deductions

bumblebee · Coach

i donate stuff to goodwill all the time (because i really shop far too much) and last year was the first year i bothered to ask for the receipts. but yes, they totally add up and it's worth it to keep track for your taxes. last year was also the first year that i used an accountant to do my taxes and itemized my deductions (usually i just take the standard deduction and do it myself) and i know that she used a particular formula for calculating the value of donations. it was something like $100/bag if it was clothes, a little more if it was shoes, etc. someone here should be able to help with that--i think it's a standard number they use across the board.

lsubatgirl · Gucci

it only matters if you have enough deductions to be able to itemize. Usually donations alone aren't enough and you need some big ticket item like interest from a house to itemize. The irs site should have some good info for you though.

I think you need receipts once you hit the $250 mark on donations but not sure if its per instance or total.

honey · Gucci

i agree w/ the others. most places will give you a receipt if you ask for, and the salvation army's website has a value calculator where you can determine the value of your deductions. however if you do donate it does have to be over $250 and unless you give a ton of stuff away it's probably better to do the standard deduction. when i did my taxes last year, i had given away more than $250 but it still turned out to be more worthwhile (to me) to take the standard deduction.

cc · Marc Jacobs

Thanks for all the info! In the meantime I had looked at an MSN article about this and it explained about how it's only worth itemizing if you can deduct more than the standard deduction. I should probably save my receipts and get receipts for clothing just in case though.

blink · Coach

ok, I don't remember all the specifics, but when I met with my accountant, she collected all those blank goodwill receipts and together we claimed the "maximum," (the govt wants and expects you to donate, so if the items are in good condition and you once spent money on them, go ahead and claim the max!) whatever it was...around $1000, I seem to remember that if we claimed over that amount, then itemization would be neccessary.

Generally, I keep track of the value of the items I donate if it's more than just used casual clothes. Like if it's a suit, bedding, kitchen items, I make sure I write that down.

It's good practice and I can remember at least one year that keeping track of those receipts has made the difference of getting a tax return or not getting one.