How Much Does the IRS Allow for Clothing Donations?
Learn how the IRS determines the value of donated clothing, what documentation is required, and how to accurately report noncash charitable contributions.
Donating clothing to charity can provide a tax deduction, but the IRS has specific rules on how much you can claim. The deduction is based on fair market value at the time of donation, not the original purchase price. Understanding these guidelines helps maximize deductions while ensuring compliance with tax laws.
To properly claim a deduction, it’s essential to know how value is determined, what documentation is required, and how to report it on your tax return.
Condition of Donated Items
The IRS requires donated clothing to be in good, usable condition to qualify for a deduction. Items should be free of excessive wear, stains, or significant damage. While charities may inspect donations, donors are responsible for ensuring items meet these standards. Poor-condition items may not be eligible for a deduction, even if a charity accepts them.
For clothing appraised at more than $500, exceptions apply. If a qualified appraisal confirms the item’s value, it can still be deducted despite visible wear. This is particularly relevant for designer or vintage clothing, which may retain significant resale value. Without an appraisal, the deduction is limited to what a buyer would reasonably pay for the item in its current state.
Methods for Establishing Value
Fair market value reflects what a willing buyer would pay a willing seller under normal market conditions. Because clothing depreciates significantly, resale value is often much lower than the original price.
One way to estimate value is by referencing thrift store pricing. Organizations like Goodwill and The Salvation Army provide valuation guides with typical price ranges for different types of clothing. For example, a men’s suit may be valued between $10 and $50, while a casual shirt might range from $2 to $12. These guides are not official IRS documents but serve as useful benchmarks.
Online resale platforms such as eBay, Poshmark, and ThredUp can also help establish value. Searching for completed sales of similar items provides a more precise estimate, especially for brand-name or high-demand clothing. Listing prices alone are not sufficient—only actual sale prices reflect what buyers are willing to pay.
Documentation for Noncash Deductions
To claim a deduction, donors must keep records showing the donation date, items given, and how value was determined. A receipt from the receiving charity should include the organization’s name, the date of donation, and a general description of the items. While charities do not need to assign a dollar value, donors must maintain their own records to justify the amount claimed.
For donations exceeding $250, the IRS requires a written acknowledgment from the charity stating whether any goods or services were received in return. If something was received—such as a fundraising dinner ticket—the deduction must be reduced by its fair market value. Without this acknowledgment, the deduction may be disallowed.
When total noncash contributions exceed $500 in a tax year, donors must complete IRS Form 8283, detailing the donated items, acquisition details, and cost basis. If donations exceed $5,000, a qualified appraisal is required, along with signatures from both the appraiser and the charity on Section B of the form. These stricter requirements primarily affect individuals donating high-value clothing, such as designer collections or rare vintage apparel.
Reporting Requirements on Tax Forms
Taxpayers who itemize deductions report noncash contributions on Schedule A (Form 1040) under charitable donations. The total fair market value of donated clothing throughout the tax year is entered here, reducing taxable income based on qualified contributions. Charitable deductions cannot exceed 60% of adjusted gross income (AGI) for most taxpayers, though limits of 30% or 20% may apply depending on the organization and contribution type.
When total noncash donations exceed $500, Form 8283 must be attached to the return. This form requires details such as the name of the charity, the date of donation, and a description of the items. If the total value of donated clothing surpasses $5,000, a qualified appraisal is mandatory, and both the appraiser and the receiving organization must complete Section B of the form. Failure to obtain the necessary documentation can result in the IRS disallowing the deduction.