Charitable Goods

Many people miss the boat come tax time because they short change themselves on their charitable giving. Clothing, in particular. Many people assume a shirt goes for a quarter, etc. This is not necessarily the case. You are allowed to claim the thrift store price for that item. If you haven't been in a thrift store lately, maybe you should go in and check it out. It is important, however to keep good records of your donations. There is software available that keeps track of your deducions, such as Deduction Pro and It's Deductible. I personally inventory all items donated, include condition of items and thrift store value. If you have more than $500 in goods, there is an extra tax form that is required, but it is well worth it!