The IRS doesn't provide a fixed price list for donated clothes, but you can claim the fair market value (FMV) of items in "good used condition or better," which is what typical buyers pay at thrift stores, using guides from charities like Goodwill or Salvation Army as a benchmark. For example, a shirt might be valued at $3-$10, while a suit could range from $10-$96, depending on quality, brand, and actual resale prices. You'll need to track donations, get receipts, and use IRS Form 8283 if your total non-cash donations exceed $500 for the year.
You can claim a deduction of up to 60% of your Adjusted Gross Income. If you donated household items in less than good used condition, if the total estimated value is more than $500, you may still take the deduction. However, you should include a qualified appraisal on your return.
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.
If you believe your donation is worth more than $500, you must submit an IRS Form 8283 with your tax filing. The IRS will also require a professional appraisal for these items. The cost of the appraisal may also be deductible as a miscellaneous expense.
$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.
Maximum claim for clothing and laundry costs without receipts. The maximum you can claim for protective and workplace clothing and laundry costs without receipts is $150.
Congress extended this deduction in 2021 and increased the amount of the deduction for joint filers to $600. This temporary measure expired at the end of 2021.
Donations Eligible for 100% Deduction (Without Qualifying Limit) -
Five Most Overlooked Tax Deductions
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.
Your monetary donations and donations of clothing and household goods that are in “good” condition or better are entitled to a tax deduction, according to Federal law. The Internal Revenue Service requires that all charitable donations be itemized and valued.
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.
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.
Good to know: A similar, temporary provision during the COVID-19 pandemic allowed a $300 deduction for single filers ($600 for joint filers) for charitable giving under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. An estimated 90 million taxpayers claimed it in tax years 2020 and 2021. 2.
Donating to charity can help you save on taxes, but you need to itemize deductions to claim them. For the 2025 tax year, you can generally deduct up to 60% of your adjusted gross income (AGI) for cash donations and up to 50% for noncash donations.
Common Challenges in Claiming 80G Deductions
The One Big Beautiful Bill Act includes a game-changing shift in how charitable contributions are treated for both itemizers and non-itemizers. For the first time in years, starting in 2026 non-itemizers can claim a charitable deduction: up to $1,000 for single filers or $2,000 for married couples filing jointly.
Income tax strategies—Donations to 501(c)(3) public charities qualify for an itemized deduction from income. Because the tax rate is then applied to a reduced income, this can minimize your overall tax liability. Many donors don't realize that there are many ways to maximize this seemingly straightforward deduction.
But starting in 2026, the OBBBA reinstates the COVID-era deduction for cash donations by nonitemizers, subject to an increased annual limit of $1,000, or $2,000 for joint filers. (The limits were $300 and $600, respectively, for 2021 when this nonitemizer deduction was last available.)
Here are some of the best tax deductions that are often overlooked, as well as what it takes to qualify for each.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
The ATO states you are not required to have written evidence if you are claiming less than $300 in work expenses overall. That means you can claim a total of $300 without receipts, although you are required to show how you spent money on the item and how your claim was calculated.