Every little bit helps, and if you want to get a bigger tax return than you anticipated, it is time to up your deductions. Charitable contributions, including those made as household donations to goodwill or another charity count against the income that you made this year. So, go through your home and get that car filled with stuff that you can claim. You’ll have to get it donated by the end of the year in order for it to count on your 2011 taxes.
The first thing that you need to know about donating items to a charity and benefiting from being able to write them off on your taxes is that you will need proof of those donations. Ask your charity to give you a receipt. Keep in mind, though, that you are responsible for figuring out how much your stuff is worth.
The other thing that you need to know is that you have to have a record of exactly what you donated with the values of the items. I do this in a notebook, separating the records by month or date that it was donated. At the end of the year, I tally the donation amount and give that, along with my notebook to the accountant who does our taxes.
You might be surprised at what your discarded stuff is worth. You can put down the price that the charity will sell it at (or the value they will get), which is usually much higher than the prices you would get from selling the items at a yard sale. If you are a regular thrift store or consignment shopper, you probably already know what your items are worth. If not, do an online search. There are a number of websites out there that will give you general information on the resale value of general household goods.
Related Articles:
How Too Much Stuff Can Get You in a Financial Bind
Life Skills that Will Help You Save Money
Things I Won’t Do to Be Frugal