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Video: How to Estimate the Value of Clothing for IRS Deductions

Written by a TurboTax Expert • Reviewed by a TurboTax CPAUpdated for Tax Year 2024 • October 16, 2024 1:48 AM
OVERVIEW

Learn how to estimate the value of clothing for IRS tax deductions as charitable donations. The value of clothing donations to charity are based on published lists of retail values or current thrift store prices. List your donation values on the Form 8283 with the help of TurboTax in this video on filing annual taxes.

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Video transcript:

Hello, I'm Jeremy from TurboTax with important news on how to value your clothing donations to charity.

Donating your used clothing to a charity can make you feel good but it can also save you some money on your tax bill this year. When you donate clothing the IRS will require you to determine their value since this value is what determines the amount you can deduct. This may seem like a daunting task but it is actually quite easy.

There are a few ways you can estimate the donation's value on your own. Some charities publish a list that estimates the average retail value for different types of used clothing. It may be helpful to refer to these when calculating your deduction. You can also check with what other thrift stores in your area charge for simpler articles of clothing or even reference some online auction sites to see what someone is willing to pay for a comparable item.

TurboTax offers a free online tool called ItsDeductible that will give you the IRS approved values for your clothing donations. You can even import this information into TurboTax when it's time to do your taxes.

Once you assess the total value of all clothing donations you made, you may need to prepare Form 8283 and attach it to your tax return if the total exceeds $500. For any single piece of clothing you value at more than $500 you must list these separately on the form and note how much you originally purchased the item for.

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