When you donate through our program you are eligible for a tax deduction. However, to claim your deduction you need to itemize on your income tax return.
In 2005, the IRS changed the laws related to tax deductibility of car donations because of exaggerated deductions based on inflated book values. Under the new rules, the deductible amount of your vehicle donation is directly related to the selling price of your vehicle.
Donate a car and if it sells for less than $500 you can take a tax deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is explained as the "Blue Book" or "Guide Book" value of your vehicle. The charity is legally prohibited from providing fair market value to the donor but you can access that information easily. See our car donation to charity help links below for Kelley Blue Book, NADA Guides or Edmunds.
The receiving charity is required by IRS to send the donor a receipt or "contemporaneous written acknowledgement" within 30 days of the vehicle sale. This receipt must include the following:
*Keep in mind, companies promising goods or services in return for your car donation are legally cutting into the amount that you can claim for a tax deduction.
Car Donation Wizard wants donors to know that donating a car to charity not only helps the organization fund worthwhile research and activities, but you also may be eligible to claim a tax deduction for your charitable contribution. Here are some car donation tax tips:
If you have additional question about deductions and IRS Regulations the following links may be of assistance:
IRS Publication 4303, A Donor's Guide to Car Donations (PDF)FILL OUT A DONATION FORM
ONLINE OR OVER THE PHONE
SCHEDULE A PICKUP
AND GET A TAX DEDUCTION
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