Guide to CAR tax
If a tax deduction is an
important consideration
for you when donating a car
to a charity, you should check out the
charity; check the value of your car; and
see what your responsibilities are as a donor.
Through this Publication 4303, the
Internal Revenue Service (IRS) and state
charity officials provide general guidelines
for individuals who donate their cars.
A companion brochure, Publication 4302, A Charity’s Guide to Car
Donations, provides guidelines for charities that receive donated cars.
Note: This publication is not intended as a guide for corporate donors.
Selecting a Charity
If you are eligible to deduct charitable contributions
for federal income tax purposes (see Qualifying for
a Tax Deduction later) and you want to claim a
deduction for donating your car to charity, then you
should make certain that the charity is a qualified
organization. Otherwise, your donation will not be
tax deductible. The most common types of qualified
organizations are section 501(c)(3) organizations, such
as charitable, educational, or religious organizations.
This publication refers to section 501(c)(3) organizations
generally as “charities.”
To verify that an organization is a charity qualified
to receive tax-deductible contributions, see IRS
Publication 78, Cumulative List of Organizations, an
annual list of most charities. Publication 78 is available
online at www.irs.gov/eo (under the Search for Charities
topic) and at many public libraries. You may also verify
an organization’s status by calling the IRS Customer
Account Services division for Tax Exempt and
Government Entities at (877) 829-5500 (toll-free). Be
sure to have the charity’s correct name. It is also helpful
to know the charity’s address.
Not all qualified organizations are listed in Publication 78.
For example, churches, synagogues, temples, and mosques
are not required to apply to the IRS for recognition of
exemption in order to be qualified organizations and are
frequently not listed. If you have questions, call Customer
Account Services at the above number.
If you want to learn more about a charity before donating
your car, use the resources listed under Assistance
Through the Charity, Through State Officials, and
Through the IRS at the end of this publication.
Qualifying for a Tax Deduction
You can deduct contributions to charity only if you
itemize deductions on your Schedule A of Form 1040.
You must take into account certain limitations on charitable
contribution deductions. For example, your deduction
cannot exceed 50% of your adjusted gross income.
Other limitations may apply. Publication 526, Charitable
Contributions, provides detailed information on claiming
deductions and the deduction limits. It also describes the
types of organizations that are qualified to receive taxdeductible
contributions. Publication 526 is available
online at www.irs.gov or by calling (800) 829-3676 (toll-free).
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