Yes, you can claim $500 or more in Goodwill donations, but you must itemize deductions on your federal tax return and use fair market value (FMV). If total noncash contributions exceed $500, you must file IRS Form 8283. Items must be in "good used condition or better".
According to the Internal Revenue Service (IRS), a taxpayer can deduct the fair market value of clothing, household goods, used furniture, shoes, books and so forth. Fair market value is the price a willing buyer would pay for them.
You can deduct every goodwill charitable contribution you make from your taxable income. While this deduction doesn't affect self-employment taxes, it does help when paying income taxes.
$500 to $5,000: A non-cash donation over $500 in value will also require a written acknowledgment of your donation and a record of how and when the items were acquired and their adjusted basis.
For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property other than cash contributed.
The IRS has a helpful booklet on this subject, Publication 561: Determining the Value of Donated Property. For items valued at more than $500, you'll need to fill out Form 8283 and attach it to your return. On this form you have to: describe each item over $500 that you donated.
$300 maximum claims rule
This rule states that if the total of your work-related expenses is $300 or less (not including car, travel, and overtime meal expenses, which can be claimed separately), you can claim the total amount as a tax deduction without receipts.
To claim donated clothing as a deduction, the IRS requires you to determine its value. If your total clothing donations for the year exceeds $500, you may need to attach Form 8283 to your tax return. Any single clothing item worth more than $500 must be listed separately on the form.
100% Deduction (No Limit) – Donations to funds like the National Defense Fund, Prime Minister's National Relief Fund, National Foundation for Communal Harmony, and National/State Blood Transfusion Council qualify for a full 100% tax deduction without any limit.
Form 8283. For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated.
How much can I deduct for household items and clothing? You can deduct the amount based on a percentage of your Adjusted Gross Income. The fair market value of donated items in good or used condition can be claimed as a deduction on your tax return. You can claim a deduction of up to 60% of your Adjusted Gross Income.
Five Most Overlooked Tax Deductions
Did you know that “stuff” donations to Goodwill are tax deductible? When you donate your stuff, a donor representative can give you a receipt for tax purposes. Be sure to hang on to that receipt for tax time.
Donating clothing doesn't just help Goodwill—it helps your community. “Clothing makes up about 60% of our sales floor,” Julie explains. “So every item donated helps generate store revenue, which funds our workforce programs and community services.” And it's not just about what sells in stores.
It's easier than ever to track your Goodwill donations by eliminating your paper receipts. Once you register, and every time you donate your receipts will be filed here electronically. And, at tax time, simply log into your account and print your yearly Goodwill donations summary! It's that simple.
The fair market value of donated clothing is generally tax-deductible, though taxpayers must retain documentation, such as receipts, for the donations. For donations valued over $500, Form 8283 must be completed and attached to the individual's tax return.
No matter how generously you gave to charities in 2025, you'll only be able to deduct up to 60% of your AGI if you gave in cash to standard public charities. For donations of appreciated assets, the maximum charitable deduction in 2025 is 30% of your AGI.
Common Challenges in Claiming 80G Deductions
Substantiation. If you want to take a charitable contribution deduction on your income-tax return, you need to substantiate your gifts. You must have the charity's written acknowledgment for any charitable deduction of $250 or more.
The “$600 tax rule” on Cash App refers to an IRS reporting requirement1-(877)(483)(6251) : if you receive $600 or more in payments for goods or services in a year on Cash App1-(877) (483)(6251), the app may have to send you (and the IRS) a Form 1099-K to report that income for tax purposes.
If you take the standard deduction, you can now also deduct up to $1,000 (single filers) or $2,000 (married couples filing jointly) for cash gifts to qualified operating charities, with inflation adjustments over time. Note: The deduction excludes donor-advised fund (DAF) contributions.
The IRS allows you to deduct fair market value for gently-used items. The quality of the item when new and its age must be considered. The IRS requires an item to be in good condition or better to take a deduction. Our donation value guide displays prices ranging from good to like-new.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
Section 1.274-5(c)(2)(iii) requires documentary evidence for any expenditure for lodging while traveling away from home and for any other expenditure of $75 or more, except for transportation charges if the documentary evidence is not readily available.
If you exceed the $300 limit, you must have written evidence of all your expenses (such as receipts or invoices), except the laundry expenses (excluding dry-cleaning) if they are $150 or less. If your total claim for work-related laundry expenses is $150 or less, you can claim a deduction without written evidence.