How much can I write off on my taxes for my donation of used goods?
Donations to Goodwill are tax deductible; however, Goodwill is prohibited from placing a value on your contribution. IRS regulations require that the donor be the one to determine the “fair market” value of the donation using purchase receipts or some method of calculating the value at resale (like online auction sites). This fair market value is what you would be able to obtain for the item(s) if you sold them yourself, or they were sold in a thrift store or consignment shop. Please note that clothing loses value dramatically at the time of original purchase, similar to a car, so the amount you can deduct is often far less than you paid. If your contribution is valued at $250 or more, you must retain your donation receipt. Please talk with your tax preparer for more details.