Add New Donation
  About ItsDeductible
  How do I use the donations screens?
  How do I start entering items?
  What is a donation?
  What is an item donation?
  Why are my item values labeled "Estimate"?
  What is a money donation?
  What is a mileage donation?
  What is a stock donation?
  What records do I need for each kind of donation?
  What are qualified organizations?
  What charitable donations are not deductible?
  What is fair market value?
  Why does ItsDeductible provide High, Medium and Low value for items?
  What's the relationship between the IRS description of "good used condition or better" and High, Medium or Low value?
  Why can't I enter Low column values in ItsDeductible?
  What's my responsibility when valuing donations?
  What if I can't find my item in ItsDeductible?
  What if I donate an item that has increased in value?
  How are the fair market values in ItsDeductible derived?

About ItsDeductible

ItsDeductible is a free tool that helps you value charitable donations and track them year round. You can use ItsDeductible to track donations of items, cash, mileage/travel expenses and stock.

For non-cash item donations, you can use ItsDeductible to:

What ItsDeductible Does
The IRS states, "To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution." (IRS Publication 561)

Per the IRS, "Fair market value is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If you put a restriction on the use of property you donate, the FMV must reflect that restriction." (IRS Publication 561)

ItsDeductible provides reliable estimates of the value of more than 1,500 common items. We do this by combining high-quality data about comparable sales transactions for these items (from completed eBay auctions and from thrift store sales) with sound, conservative estimation algorithms for assessing the fair market value of the items.

Our estimates are designed to reflect the spirit and intent of IRS publications 561 and 526.

How to Use ItsDeductible
Important: While ItsDeductible provides the fair market value of comparable items, it does not value your specific item for you.

It is your responsibility to determine whether your item is comparable to the examples in ItsDeductible and to value it accurately.


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How do I use the donations screens?

To get started, choose any category and select Add or Edit to begin entering information.


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How do I start entering items?

You can either search or browse to find your items. Once you find your item, you'll enter a value for it on an Item Value Worksheet. Enter all items you donated on the same date. When you are finished, select Add Items To My Donation to see your Item Donation Summary.

From the Item Donation Summary associated with each donation date, you can select Add More Items or Done With This Donation.

When you are finished entering all items, select Done With Item Donations from the main Item Donations page.

If you do not find your item, select the Add It link, found at the bottom of each Item Value Worksheet, to add your own custom item and assign a value to it.


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What is a Donation?

A charitable donation is a donation or gift to, or for the use of, a qualified organization. The donation must be voluntary and made without getting, or expecting to get, anything of equal value in return.


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What is an Item Donation?

Item Donations are contributions of new or used goods to a qualified organization. The amount of your charitable deduction is the fair market value of those goods at the time they were donated. These goods would include items such as clothing, household goods, toys, sporting equipment, tools, furniture, jewelry, etc.
Learn More Show Examples

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Why are my item values labeled "Estimate"?

ItsDeductible generates item values using a blend of eBay sales data and thrift store pricing. To do this, we collect the data throughout the year and provide updated item values - known as "established values" - at the end of the year. This ensures that the item values provided on your tax form accurately represent the fair market values of the items when they were donated.

To allow you to track your donations and estimate how they may affect your taxes, ItsDeductible provides "estimated values" for you to use throughout the year. These estimated values will be updated automatically with the established values when you import your information into TurboTax* at tax time.

Note: Estimated values are updated on an annual basis. For this reason, they can vary significantly from the established values provided at tax time.


In particular, technological items such as desktop computers, cell phones, tablets, laptops, audio equipment, electronics, and TVs can have estimated values that differ significantly because technology changes so rapidly and frequently.

Often, a relatively new laptop or cellphone can end up with a lower established value than you might expect because even newer technology has become available.

*When using TurboTax Online and Desktop (Deluxe and above)


IRS Publication 526
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What is a Money donation?

Money donations include contributions made by cash, check, credit card, debit card or payroll deduction. Out-of-pocket expenses are also considered a monetary donation. For out-of-pocket expenses to be deductible, these expenses must be unreimbursed by the charity and be directly connected to the service you provide. They must have occurred only in the service of the charity and they cannot be your own personal or living expenses.

Learn More Show Examples

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What is a Mileage donation?

Mileage donations are contributions made by using your car for the service of a charity or to drop off donations to a charity. You also can deduct unreimbursed travel expenses that are related to the use of your vehicle when used to perform a service for a qualified organization. These expenses include things such as gas and oil, but do not include general maintenance and repair of your vehicle, insurance or the cost of tires. You are also allowed to deduct any parking or toll expenses separately.

Learn More Show Examples

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What is a Stock donation?

Stock donations are contributions of publicly traded stocks, bonds or mutual funds to a qualified organization. Depending on the value of the stock and the time you donate it, this donation will fall into one of two categories: ordinary income property or capital gain property.

Learn More Show Examples

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What records and receipts do I need for each kind of donation?

Record keeping requirements for donations depend on the type and amount of the donation. When determining the amount of donation, do not combine separate contributions made on different dates.


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What are qualified charities?

The IRS term for charity is a "qualified organization."

To find a qualified charity:

Examples of "qualified organizations" include:

Show Examples

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What charitable donations are not deductible?

You cannot deduct some donations:
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What is fair market value?

The IRS defines fair market value as the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act and both having reasonable knowledge of the relevant facts.

IRS Publication 561

Factors that affect the fair market value of an item include: condition, style, use, and age. ItsDeductible considers these factors together as contributing to an item's value.

You also need to consider the length of time you have owned an item.

Items Owned
Deduction Can Be
Less than one year No more than the original price paid
More than one year Generally at the fair market value
(Consult IRS publication 526 for certain exceptions.)

Show Examples

Note: Most items will not have a fair market value greater than what you paid for the item.

According to the IRS, there are no fixed formulas for determining the fair market value of your items, other than to know what similar goods are being bought and sold for.

The IRS recommends that you visit stores that sell used goods (such as thrift and consignment stores) and see what similar items are selling for to determine the fair market value for your donations.

ItsDeductible accomplishes this by aggregating information from completed eBay auctions and thrift and consignment store sales.


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Why does ItsDeductible provide High, Medium and Low value for items?

Factors that affect the fair market value of an item include:

ItsDeductible considers these factors together as contributing to an item's value. Because every item has a unique combination of style, condition, usability and age, we have aggregated these factors into three different "values":

Value
Factors Examples
High
Style Top brands/manufacturers, features, materials, etc.
Condition Looks new, no noticeable wear
Use Is still useful for the average consumer today
Medium
Style Mid-level brands/manufacturers, features, materials, etc.
Condition Shows slight wear
Use Could be used by most consumers today
Low
Style Low end or outdated
Condition Obvious wear/use, but still functional
Use Not useful for most consumers today

Learn More Show Examples

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What's the relationship between the IRS description of "good used condition or better" and High, Medium or Low value?

The IRS requires that to be tax deductible, an item must be in "good used condition or better." ItsDeductible values of Medium and High are comparable to IRS values of "good used condition or better."

The IRS also states that Items of "minimal monetary value" are not tax deductible. The IRS notes that "such used property may have little or no market value because of its worn condition. It may be out of style or no longer useful." IRS Publication 526

Value
Factors Examples Compare to IRS Description
High
Style Top brands/manufacturers, features, materials, etc. Better than used condition
Condition Looks new, no noticeable wear
Use Is still useful for the average consumer today
Medium
Style Mid-level brands/manufacturers, features, materials, etc. Good used condition
Condition Shows slight wear
Use Could be used by most consumers today
Low
Style Low end or outdated Worn/Minimal monetary value
Condition Obvious wear/use, but still functional
Use Not useful for most consumers today

Learn More Show Examples

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Why can't I enter Low column values in ItsDeductible?

ItsDeductible reflects the provisions of the Pension Protection Act of 2006, which does not allow a tax deduction for clothing and household items not in good used condition or better.

As per the table below, a "low" value is an indicator that a donated item is not in good used condition or better and therefore is not deductible. The IRS may also deny a deduction for any item with "minimal monetary value", such as used socks or underwear.

To make sure you don't inadvertently violate the policy, ItsDeductible will not allow you to make any entries for clothing and household items in the Low value column.

Note: If you make a donation of clothing or household items that you believe is worth more than $500 and it is NOT in "good used condition or better" (for instance, a worn antique chair), you can do this if you include a qualified appraisal of it with your return. IRS Publication 561

Value
Factors Examples Compare to IRS Description
High
Style Top brands/manufacturers, features, materials, etc. Better than used condition
Condition Looks new, no noticeable wear
Use Is still useful for the average consumer today
Medium
Style Mid-level brands/manufacturers, features, materials, etc. Good used condition
Condition Shows slight wear
Use Could be used by most consumers today
Low
Style Low end or outdated Worn/Minimal monetary value
Condition Obvious wear/use, but still functional
Use Not useful for most consumers today

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What's my responsibility when valuing my donations?

While ItsDeductible provides the fair market value of comparable items, it does not value your specific item for you.

It is your responsibility to determine whether your item is comparable to the examples in ItsDeductible.

When using the Item Value Worksheet (see example screenshot below), keep in mind that we provide assurance of accurate fair market values only. If you believe your item is not comparable to the items listed and their corresponding dollar values, please use the "Add it" feature to manually enter and value your item.



IRS Publication 561 IRS Publication 526


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What if I can't find my item in ItsDeductible?

Although ItsDeductible provides fair market values for thousands of commonly donated items, there may be an item that does not appear in our database or that has unique characteristics that affect its value. You can enter this as a custom item and estimate its fair market value on your own.
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What if I donate an item that has increased in value?

If you donate property with a fair market value that is more than the original cost of the property, special rules apply.

If you have owned the property for 12 months or less, then you are allowed to deduct only your original basis in that property. Your basis is either the amount you originally paid for it, or, if you received the property as a gift, your basis is what the original cost was to the original owner of the property. For example, if you buy a piece of art for $800 and donate it just six months later for $1,000, you are only allowed to deduct your basis of $800.

If you have owned the property for more than 12 months, then you are allowed to deduct the full fair market value for the property at the time of your donation. Using the previous example, if you had sold the art 14 months after you originally purchased it and the current fair market value was $1,000, then you could deduct the full $1,000.

IRS Publication 526

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How are the fair market values in ItsDeductible derived?

To provide reliable estimates of the dollar value of items, ItsDeductible collects and analyzes pricing information from the auction website eBay as well as resale outlets and thrift stores.

eBay Auctions
Each year, we collect data from hundreds of thousands of completed eBay auctions. This enables us to create a comprehensive, up-to-date Fair Market Value database based on real-world transactions between willing sellers and buyers. This is consistent with the guidance provided by the IRS.

This method enables us to capture valuations for items donated to charities that are often difficult to find in thrift, consignment, or specialty stores, such as electronics, computers, jewelry, and other higher priced items.

Thrift/Consignment Stores
Additionally, we collect pricing information through manual processes such as periodic surveys of thrift and consignment stores. These values supplement the millions of eBay transaction values we receive.

The data is then aggregated, filtered for quality control, and run through an algorithm for further accuracy. Results are reviewed by two tax experts.

The resulting dollar amounts are utilized in ItsDeductible to assist you in valuing your items.


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*TurboTax Online and Desktop (Deluxe and above)