Goodwill question

[QuinSnydersHair]

Okay, this year alone, my wife and I have donated somewhere in the neighborhood of 30 black garbage bags worth of clothing (as well as other items) to Goodwill. We're talking about 400-600 items of clothing and if they're valued at about $4 per item (that's about right given Goodwill's value chart), that's $1,600-$2,400 of clothing (I'd say minimally) that we've donated.

My problem is, despite having receipts, the receipts I've printed out at the GW location are not specific. Based on what the guys who work there showed me what to do, I simply click Clothing once for each bag I donated.
That's how they did it when they first showed me how to use the system so that's what I've done myself ever since. The problem is, looking at their site more closely online, it says I should be as specific as possible about each item I donate (est. value, condition, etc.) but I obviously have not. For example, I donated 10 bags of clothing this afternoon and my receipt just says Clothing on it 10 times.

I guess what I'm getting at is this. I feel like I'll have been short-changed by about $500 on my taxes. Don't get me wrong. We donated in the first place because we wanted to simply declutter and give it to what we perceive to be a worthwhile cause. But if the tax laws say I can get x dollars for this, I'd like to get the dollar value I feel I deserve.

Does anyone have any experience with donating a lot to GW like this? Any advice?

 

[AlaskanAssassin]

Okay, this year alone, my wife and I have donated somewhere in the neighborhood of 30 black garbage bags worth of clothing (as well as other items) to Goodwill. We're talking about 400-600 items of clothing and if they're valued at about $4 per item (that's about right given Goodwill's value chart), that's $1,600-$2,400 of clothing (I'd say minimally) that we've donated.

My problem is, despite having receipts, the receipts I've printed out at the GW location are not specific. Based on what the guys who work there showed me what to do, I simply click Clothing once for each bag I donated.
That's how they did it when they first showed me how to use the system so that's what I've done myself ever since. The problem is, looking at their site more closely online, it says I should be as specific as possible about each item I donate (est. value, condition, etc.) but I obviously have not. For example, I donated 10 bags of clothing this afternoon and my receipt just says Clothing on it 10 times.

I guess what I'm getting at is this. I feel like I'll have been short-changed by about $500 on my taxes. Don't get me wrong. We donated in the first place because we wanted to simply declutter and give it to what we perceive to be a worthwhile cause. But if the tax laws say I can get x dollars for this, I'd like to get the dollar value I feel I deserve.

Does anyone have any experience with donating a lot to GW like this? Any advice?

I can give a little help, as I'm currently sitting for my CPA exams. It's funny, I actually sit for Regulation (Tax and Business Law) in two weeks. First off, I assume you're itemizing instead of using the standard deduction. It wasn't totally clear if you have already used these contributions on your last return (and didn't claim as much benefit as you believe you should have), or if you are trying to apply these contributions on your next filing.

Most non-cash donations are going to have to be an estimate. You're trying to ascertain the fair market value (not necessarily the most someone would pay) for your items. Goodwill actually publishes a value guide for commonly donated items:

https://www.goodwillnne.org/donate/donation-value-guide/

If you're giving your best honest and fair estimate (likely in the range listed in the chart) for your items and have the appropriate documentation showing the total number of items you have donated, you can sleep easy. The IRS only requires an appraiser to value your donations if they are above $5,000, which you are well short of.

 

[QuinSnydersHair]

I can give a little help, as I'm currently sitting for my CPA exams. It's funny, I actually sit for Regulation (Tax and Business Law) in two weeks. First off, I assume you're itemizing instead of using the standard deduction. It wasn't totally clear if you have already used these contributions on your last return (and didn't claim as much benefit as you believe you should have), or if you are trying to apply these contributions on your next filing.

Most non-cash donations are going to have to be an estimate. You're trying to ascertain the fair market value (not necessarily the most someone would pay) for your items. Goodwill actually publishes a value guide for commonly donated items:

https://www.goodwillnne.org/donate/donation-value-guide/

If you're giving your best honest and fair estimate (likely in the range listed in the chart) for your items and have the appropriate documentation showing the total number of items you have donated, you can sleep easy. The IRS only requires an appraiser to value your donations if they are above $5,000, which you are well short of.

Thanks man. My wife's a CPA but she's never dealt with this type of thing. So yeah, I am itemizing. And yes, in the past, over the past two or three years, I think I've claimed $500 each year which is some sort of a threshold for IRS purposes and to be honest, probably extremely fair based on how many bags we gave each year. 10 or so?

My original post was only in reference to the 30+ bags we've donated this year and yeah, I know it's just fair market value and about the value chart as I mentioned in the first post. The problem, like I said (did you read my post, lol?), is that I do not have proper documentation. For example, I donated about 10 bags today and just printed out my own receipt with the word "Clothing" on it 10 times. It does not specify how many items of clothing were in each bag or the value at all for any of the items/bags.

That said, if the IRS only requires an appraiser above $5,000, I guess I should be fine like you said. I'd just hate for some random audit three years from now, and to lack the exact proof of how much I donated. It's insane, man. Like seriously 500 items of clothes about.

 

[Stifle Tower]

Thanks man. My wife's a CPA but she's never dealt with this type of thing. So yeah, I am itemizing. And yes, in the past, over the past two or three years, I think I've claimed $500 each year which is some sort of a threshold for IRS purposes and to be honest, probably extremely fair based on how many bags we gave each year. 10 or so?

My original post was only in reference to the 30+ bags we've donated this year and yeah, I know it's just fair market value and about the value chart as I mentioned in the first post. The problem, like I said (did you read my post, lol?), is that I do not have proper documentation. For example, I donated about 10 bags today and just printed out my own receipt with the word "Clothing" on it 10 times. It does not specify how many items of clothing were in each bag or the value at all for any of the items/bags.

That said, if the IRS only requires an appraiser above $5,000, I guess I should be fine like you said. I'd just hate for some random audit three years from now, and to lack the exact proof of how much I donated. It's insane, man. Like seriously 500 items of clothes about.

What we usually do - and we don't donate as much as you do - is stack everything up (well,pile is a better word) and take pictures, especially if there is an item of higher value we're donating. We input everything into "It'sDeductible" (a Turbo Tax add-on). Values are calculated automatically and then uploaded into our tax return.

IRS audits are HELL! So from this point forward take PICTURES, both of all the items in piles and then of everything bagged. And time stamp the photos if possible.

 

[QuinSnydersHair]

What we usually do - and we don't donate as much as you do - is stack everything up (well,pile is a better word) and take pictures, especially if there is an item of higher value we're donating. We input everything into "It'sDeductible" (a Turbo Tax add-on). Values are calculated automatically and then uploaded into our tax return.

IRS audits are HELL! So from this point forward take PICTURES, both of all the items in piles and then of everything bagged. And time stamp the photos if possible.

After I donated the bags today, I thought the same thing. Take pics from now on. But I'm not sure how that is proof of anything. I could take pics and just give the clothes as hand-me-downs to a friend, or throw them out, or use them in a bonfire. Ya know?

 

[AlaskanAssassin]

Thanks man. My wife's a CPA but she's never dealt with this type of thing. So yeah, I am itemizing. And yes, in the past, over the past two or three years, I think I've claimed $500 each year which is some sort of a threshold for IRS purposes and to be honest, probably extremely fair based on how many bags we gave each year. 10 or so?

My original post was only in reference to the 30+ bags we've donated this year and yeah, I know it's just fair market value and about the value chart as I mentioned in the first post. The problem, like I said (did you read my post, lol?), is that I do not have proper documentation. For example, I donated about 10 bags today and just printed out my own receipt with the word "Clothing" on it 10 times. It does not specify how many items of clothing were in each bag or the value at all for any of the items/bags.

That said, if the IRS only requires an appraiser above $5,000, I guess I should be fine like you said. I'd just hate for some random audit three years from now, and to lack the exact proof of how much I donated. It's insane, man. Like seriously 500 items of clothes about.

Sorry. I tend to skim more often than I should. Here is my suggestion:

First, your suggestion that you do not have proper documentation is inaccurate, the receipt you have is proper documentation. Goodwill is never going to make an estimate for the items you donate, that's your job. My suggestion would be to estimate how many items of clothing were in each bag you donated, and then decide on a conservative value per item. Thus, if you donated 10 bags with 25 items each, you have 250 items of clothes. Choose your value per item, say $4, and you have a $1,000 itemized deduction. I would then write down on your receipt your estimated number of items per bag and the value you have assigned each item.

While I've never been an IRS auditor, I do understand the process they go through. They aren't concerned with minor contributions to Goodwill that may be off by a few dollars, because anyone's estimate (for this type of donation) can be off by a few dollars, it's subjective. Also, it's not like they are going to hunt down your items at Goodwill. They just want to make sure your estimate is reasonable, recorded (your receipts), and was made in good-faith.

 

[AlaskanAssassin]

After I donated the bags today, I thought the same thing. Take pics from now on. But I'm not sure how that is proof of anything. I could take pics and just give the clothes as hand-me-downs to a friend, or throw them out, or use them in a bonfire. Ya know?

Well, you would need to have the picture along with the receipt from Goodwill, because you are right, how else would they know you donated it?

Pictures are definitely a good idea for high-value items. For instance, if you donate an expensive flat-screen TV. The guy at Goodwill is only going to write down "Television" or something. In this instance it would be beneficial to have a picture that could better show the high value of the item. Without the proof, an IRS agent won't be able to tell the difference between your beautiful flat-screen and a $5 junk TV that you more likely would find there.

 

[QuinSnydersHair]

Well, you would need to have the picture along with the receipt from Goodwill, because you are right, how else would they know you donated it?

Pictures are definitely a good idea for high-value items. For instance, if you donate an expensive flat-screen TV. The guy at Goodwill is only going to write down "Television" or something. In this instance it would be beneficial to have a picture that could better show the high value of the item. Without the proof, an IRS agent won't be able to tell the difference between your beautiful flat-screen and a $5 junk TV that you more likely would find there.

Yeah, one thing I donated yesterday was this kickass $300 bedspread I bought when I was single about 12 years ago. She wanted it gone because of all the women I conquered on it and under it. Her words not mine. It's ashamed. The thing was heavenly. But I wasn't about to fight about it, her being less than two months away from shootin' out our first own LittleSerp.

 

[VINYLONE]

Okay, this year alone, my wife and I have donated somewhere in the neighborhood of 30 black garbage bags worth of clothing (as well as other items) to Goodwill. We're talking about 400-600 items of clothing and if they're valued at about $4 per item (that's about right given Goodwill's value chart), that's $1,600-$2,400 of clothing (I'd say minimally) that we've donated.

On the tax end of things, I don't think you have anything to worry about. Solid advice from the other folks.

On the donating end, good on ya, mate. I used to love things. I would just buy things to have them. Books, CD's, clothing, etc. You know, just things. I would always convince myself that I needed something. I've been living in my current apartment close to 3 years. One day, a couple of years ago, something just changed. I started to give away things. Clothes, music, just things that I hand't used in years. Some stuff I gave to the local Goodwill, other stuff I sold on eBay/ craigslist. I felt so much better after I pared down my belongings. My parents came over one day to visit and it was the first time they had been to my apartment. I remember my Dad saying, "Where's all your stuff?!?!" I don't know what changed but I wanted the least amount of stuff. Now, every few months, I go through my remaining stuff and if there's something I don't use, I get rid of it.