Many people think about holding a garage, yard or moving sale as a way to make money from clearing out household clutter. But very often it would be more profitable to donate that used clothing, appliances or furniture to charity. With good record keeping and the help of tax deduction software, donations to charity can result in a significant tax savings without triggering an IRS audit.
Itemize Deductions to Claim the Charitable Donation Tax Deduction
The deduction for charitable donations is taken on Form 1040 Schedule A, Itemized Deductions. The deduction cannot be taken without itemizing deductions on Schedule A. It makes sense to use Schedule A if the total of all itemized deductions will be more than the standard deduction.
If the total of all charitable donations exceeds $500, the donations must also be detailed on Form 8283, Noncash Charitable Contributions.
