All this week, 2 Wants To Know is talking about helping you get organized. Right now, we're talking about that pile of clothes you are thinking of taking to Goodwill. Something that could make you hesitate when tax time comes around is putting a price, or a value, on the donation. That's what the IRS asks for when you file your taxes, but they don't tell you how to come up with the number.
It's actually a simple process. It starts when you're gathering your items for donation.
- Make a complete list of the items you're donating.
- Then find the current re-sale value of the clothes. Both the Salvation Army and Goodwill publish value guides on their website. Click on the organization to be linked to their list.
2 Wants to Know looked into some of the Salvation Army's listed values. They say a jacket can go for $4 to $12, depending on the condition. A dress is valued at anywhere from $4 to $20, again depending on the age and condition. You determine the value of the items then add it up, and that's what you report to the IRS.
Keep this in mind: if the clothing donation total exceeds $500, you'll need to prepare Form 8283 and attach it to your tax return.