Documenting Clothing Donations

• When tracking donations, individuals should keep a detailed record of all donated clothing items, including the number of clothes, the condition of the clothes, the dates the clothes were purchased, the original purchase price and a picture of the donated clothes. Receipts should be signed and dated by the organization that receives the clothing.
  
  

Fair Market Value

• Don't expect to deduct the original purchase of the clothing. A system called "fair market value" determines the clothes' worth. Fair market value is defined as a reasonable price that a regular buyer would be willing to pay in a normal market situation. Fair market value isn't the original purchase price, but the thrift or second-hand price. Clothes that are unsuitable to wear are unsuitable for donation. The IRS requires that clothes be in a wearable condition.
  
  

Forms for Deductions

• Charitable donations must be reported using IRS Form 1040. Form 8283 is required for clothing donations that exceed $500. Those who make a donation worth more than $5,000 must have their donation evaluated by an appraiser. After evaluating the clothes, a qualified appraiser must complete Part III Declaration of Appraiser, which should be included in the tax return.
  
  

Considerations

• You can only get a deduction if you give your clothing to a qualified organization (those with a tax-exempt status). It's wise to ask the charity if it is IRS qualified. Many qualified organizations accept clothing donations. Two of the most prominent are the Salvation Army and Goodwill. Both organizations have centers around the country.