If you have clothes you are no longer using you can donate them to charity and get a tax deduction. Here are step by step directions on how to value donated clothes for a tax deduction.
Gather all the clothes you have that you no longer want or need. The IRS will only allow you to take a deduction for clothes that are in good or better condition, so discard any that are not.
Make a list of the clothing items you have. To value donated clothes for a tax deduction you will need to know the "fair market value" for these items. Wikipedia defines fair market value as "an estimate of what a willing buyer would pay to a willing seller, both in a free market, for an asset or any piece of property".
Look at items that are comparable to yours to value donated clothes for a tax deduction. Look on ebay or visit thrift stores to find out what they are selling for.
Use valuation lists to value donated clothes for a tax deduction. These are provided by certain charities. Go to the Goodwill and The Salvation Army sites (see resources for links) to see what donated clothing sells for. At Goodwill for example, the listing shows that a man's sweater will sell between $5.00 and $15.00. Value your clothing using the guidelines the lists provide.
Donate the clothes to a tax exempt charity. Make sure to get a receipt for the items for tax purposes. Include the donation on Schedule A of Form 1040, when you file your taxes.
Items you will need
- Clothes to donate
- Taking a photograph of the items prior to donation to keep with your itemized list, will help if you are ever questioned about it by the IRS.