Take a Tax Break for Decluttering
Mind these tax rules when cleaning out your home and donating to charity.
Cleaning out your home or garage can be a boon to charities, but noncash donations come with their own set of rules. The IRS expects you to use the fair market value of your donation to determine your deduction. Tools such as TurboTax’s ItsDeductible can help give you an idea of an item’s fair value and can track your donations throughout the year. For anything worth more than $500, you’re required to provide a written description on Form 8283. For anything more than $5,000, you need an appraisal, but you can deduct the cost of getting one.
Donating a car is tricky because the deduction is limited to what the charity sells it for. Bob Meighan, lead CPA at the American Tax & Financial Center at Turbo Tax, says charities can often be in a hurry to sell and may accept a lowball price, which lowers your deduction. You’re more likely to secure a higher price by selling the vehicle yourself and then donating the money.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Get 60% Off Peacock for a Limited Time
Peacock is offering a 60% discount on their ad-supported plan, which you can buy for $29.99 for a year. The deal runs through February 18.
By Sean Jackson Published
-
Stock Market Today: Stocks Pop on Time-Delayed Tariffs
All three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
By David Dittman Published
-
New Colorado Tax Credit: What’s the Scoop?
State Tax Everything you need to know about the Colorado family affordability tax credit in 2025.
By Kate Schubel Published
-
IRS Tax Refunds Are $526 Bigger This Year: Here's Why
Tax Refunds Inflation-related changes to the tax code could result in a larger refund.
By Gabriella Cruz-Martínez Published
-
Retire in Costa Rica With These Three Tax Benefits
Retirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
By Kate Schubel Published
-
Ten IRS Audit Red Flags for Self-Employed Individuals
IRS Audits Taxpayers who file Schedule C with their Form 1040 have a greater chance of an IRS audit.
By Joy Taylor Published
-
Trump Wants You Out of the IRS, But You'll Have to Wait Until May
IRS Some IRS employees won’t be able to resign using the buyout offer until the end of tax season.
By Gabriella Cruz-Martínez Published
-
Are Tips Taxable in 2025? Understanding the IRS Rules
Taxable Income With all the recent talk about ending federal taxes on tips, some wonder whether tips are taxable income.
By Gabriella Cruz-Martínez Published
-
Key Family Tax Breaks Are on the GOP Chopping Block This Year
Tax Credits Several tax breaks, including the Child Tax Credit, may face reforms or be cut entirely as lawmakers seek revenue for Trump’s tax plans.
By Gabriella Cruz-Martínez Last updated
-
What's Going on With New Jersey Property Tax Programs?
Property Tax ANCHOR and ‘Senior Freeze’ just got a refresh, and there’s a new program: Stay NJ. Learn how to save on New Jersey property taxes.
By Kate Schubel Published