Donating a Wedding Dress for a Tax Deduction

Donating a wedding dress can provide a potential tax benefit as a noncash charitable contribution. To receive a tax deduction, you must follow Internal Revenue Service (IRS) rules for valuation, documentation, and reporting. The value of the deduction is not based on the original purchase price but on its current worth at the time of donation.

Determining the Value of Your Dress

Establishing the dress’s Fair Market Value (FMV) is the basis for your tax deduction. The IRS defines FMV as the price a willing buyer would pay for an item. For a wedding dress, this value is almost never its original retail price, as it is influenced by its age, condition, designer, and current style trends. A dress from a well-known designer that is only a year or two old and in pristine condition will have a higher FMV than a dress that is several years old or has visible wear.

To determine a credible FMV, you must research what similar dresses are selling for on platforms for used wedding dresses, online marketplaces, and consignment shops. Document your findings by saving records of comparable dresses and their final sale prices. Taking pictures of your own dress to document its condition at the time of donation is also a good practice, noting any stains, tears, or alterations. The responsibility for proving the FMV rests with you, the donor.

Required Documentation for the Donation

Your donation must be made to a qualified organization, which is a charity registered with the IRS as a 501(c)(3) organization. You can verify a charity’s status using the IRS’s Tax Exempt Organization Search tool. For any contribution of $250 or more, you must obtain a written acknowledgment from the charity that includes its name, the date and location of the contribution, and a description of the dress.

If the total value of your noncash donations for the year exceeds $500, you must file IRS Form 8283, Noncash Charitable Contributions. For a dress valued up to $5,000, you will complete Section A of this form. This section requires information about the charity, a description of the dress, when and how you acquired it, your original cost, and its FMV.

A different rule applies if you value the dress at more than $5,000. In this situation, you are required to obtain a qualified appraisal from a qualified appraiser. You must then complete Section B of Form 8283, which includes a declaration signed by the appraiser and an acknowledgment from the charity. The completed appraisal report must be kept with your records.

Claiming the Deduction on Your Tax Return

To claim the deduction, you must itemize deductions on your tax return using Schedule A (Form 1040), as you cannot take the standard deduction and also claim this contribution. You will only receive a tax benefit if your total itemized deductions exceed the standard deduction amount for your filing status.

Your total for noncash charitable contributions, including the FMV of the wedding dress, is entered on Schedule A. If your deduction for the dress is over $500, the completed Form 8283 must be attached to your Form 1040. The deduction reduces your adjusted gross income (AGI), which lowers your overall tax liability.