Do you know that many donations that you give to charity are tax deductible? That's right, you can turn your household goods that you no longer need into a tax benefit. So, as you venture into the depths of the Abyss (also known as the back of your closet), keep track of all the items you choose to donate. It's you responsibility to report your donation to the IRS.
All items donated must be in good condition or better, according to the new tax law.
When you take the items to the non-profit organization, be sure to obtain a receipt for your donation. While the receipt won't list an actual value of your donation, but can serve as proof should you need it during an audit that may occur in the future.
If the value of your noncash donation falls between $250 and $500, you will need a written acknowledgement (hence the receipt) from the nonprofit or charitable organization. This is often the case with vehicle donations. If your donated property totals more than $500, you will be required to fill out Form 8283.