Is it worth documenting thrift store donations for the IRS

June 13, 2021 12:13 PM

I have a heap of items going to the thrift store. Should I document them before sending them off for a deduction on my taxes (in the US)? Or would this just be rolled into the standard deduction? I can't remember, and google is failing me.
posted by nanook to Grab Bag (10 answers total)

If you are taking standard deduction, then it's extremely unlikely you can make use of them.
posted by flimflam at 12:30 PM on June 13, 2021 [9 favorites]

I always think it's worth listing out the items you're donating, just in case you're able to itemize your income tax deductions. Prior to the Trump tax changes, I itemized every year thanks in part to clothing and other items I donated. Since then, even with our very high property taxes in this area and donations of both cash and household goods, the standard deduction has worked out better for me. But I keep trying. (NB: Don't forget to get a receipt from the thrift shop.)
posted by DrGail at 12:31 PM on June 13, 2021 [1 favorite]

You can deduct charitable contributions up to $300/year without itemizing deductions (in addition to the standard deduction) and are supposed to have documentation on file for it. See the IRS website. But that may have only applied to 2020.
posted by jkent at 12:33 PM on June 13, 2021 [4 favorites]

My understanding is that donations are still deductible on your state taxes even if you take the standard deduction for federal taxes. I’ve kept documenting donations as a result — it doesn’t return as much as it did previously, but it’s not nothing. And it sometimes helps me realize that I’d donated something I find myself scouring the basement for several years later.
posted by sesquipedalia at 12:35 PM on June 13, 2021 [4 favorites]

You generally need a receipt from the donation center to justify the value should IRS audit you.
posted by kschang at 1:20 PM on June 13, 2021 [1 favorite]

If you are taking standard deduction, then it's extremely unlikely you can make use of them.

This is the big question: Are you itemizing your deductions, or using the standard deduction ($12,550 for an individual filer)? Most people use the standard, and thus tracking small charitable donations is unnecessary.

You can deduct charitable contributions up to $300/year without itemizing deductions (in addition to the standard deduction) and are supposed to have documentation on file for it. ... But that may have only applied to 2020.

You can do it this year, for your taxes in 2022 - $300 individual, $600 married - but it is cash donation only, not donation of goods.

You generally need a receipt from the donation center to justify the value should IRS audit you.

Only if you're saying that this single donation is valued at $250 or more.

Across all your donations: If you donate more than $500 in non-cash you need to complete IRS Form 8283, which simply breaks down your donation by good, recipient, and value. If you use TurboTax or similar tax software, it does this for you automatically.

If you donate over $5000 in non-cash of a single item or similar group of items to a single recipient, you then need to complete Section B of IRS Form 8283, which requires a formal appraisal of value.
posted by NotMyselfRightNow at 1:48 PM on June 13, 2021 [5 favorites]

I donate TONS of shit constantly - it's never worth more in $ and my TIME than the standard deduction.
posted by tristeza at 2:02 PM on June 13, 2021 [4 favorites]

I keep track in It's Deductible, which at least makes it easy. But I also have property taxes so I'm more likely to get above the standard deduction. If you aren't going to get anywhere near it, it isn't likely worth it to track.

That said, the deductible amount for household items and clothing is higher than you think it is, but the item needs to be in a condition better than "poor".
posted by magnetsphere at 7:11 AM on June 14, 2021

I live in a state with high property and income taxes, which combined with mortgage interest regularly pushed my deductions over the standard. The new tax bill and its SALT cap of $10K pushed me back below the itemized threshold and made my usual yearly charitable deductions moot.

TLDR check your entire tax position and see if it's even worth documenting and itemizing.
posted by JoeZydeco at 9:24 AM on June 14, 2021

Your donations for the benefit of itemizing and getting a tax break would have be be 1)cash and 2) over $300 in order to make any use of them.
posted by The_imp_inimpossible at 10:09 AM on June 14, 2021