Step 4: Gather necessary documentation
The documentation you’ll need to claim your deduction
is dependent on the amount of the deduction.
=$500
For a deduction of $500 or less, the IRS requires:
- the name of the charity
- a description of the donated vehicle
- a statement if goods and services were
received, and their value.
Quick tip: This information is usually found on the receipt
issued by the charity. If you donated to Kars4Kids,
your official receipt is all the documentation you will need
in this case.
$500-$5,000
For a deduction of more than $500 and less than $5,000,
the IRS requires:
- the name of the charity
- a description of the donated vehicle
- a statement if goods and services were
received, and their value
- Copy B of Form 1098-C OR a legal substitute
- If you are e-filing, Form 8453
Quick tip: The receipt issued by the charity may be a legal
substitute for Form 1098-C. Kars4Kids’ official receipt
is a legal substitute for Form 1098-C and can be used to
input all necessary information asked for by tax software
from the 1098-C.
>$5,000
For a deduction of more than $5,000,
the IRS requires:
-IRS Form 8283
-Form 1098-C or legal substitute (such as the
receipt from the charity)
-a written appraisal of the vehicle’s value.
The appraisal must be from a qualified appraiser
and must be completed no more than 60 days before
the donation. The cost of the appraisal cannot
be deducted as a charitable expense, but it can be
itemized in miscellaneous expenses.
Step 5: File tax return!
The tax deduction can be claimed in the year that the
donation was given. Don’t forget to include all the necessary
documentation, as outlined above, with your federal
income tax return. Whether your car donation qualifies
for a deduction on your state income tax return varies on
a state-by-state basis. Check with your state tax department.
Note: The tax benefit you receive for donating your car is
a deduction, not a tax credit. This means that the amount
of income that the government will tax you on is reduced
by the deduction amount, resulting in lower taxes for you.
0 Comments