Donating your unused household items can do more than clear out clutter — it can also lower your tax bill. If you give clothing, furniture, or appliances to a qualified charity, those items may be eligible for a tax deduction. But to claim it, you’ll need to understand how donation valuation works and what the IRS requires.
This guide breaks down how to determine the value of your donated goods, what records to keep, and how tools like That’s A Write-Off can make the entire process simple, accurate, and free to start.
Why Donation Valuation Matters
When you donate non-cash items, the IRS allows you to deduct their fair market value (FMV) — the price someone would reasonably pay for the item today, not what you originally paid for it. The goal is to assign a fair, realistic value based on condition and usability.
The catch? Determining FMV isn’t always straightforward. The IRS doesn’t publish exact prices for used goods — that’s up to you, as the donor, to document and justify. That’s why having a reliable valuation tool is essential.
What You Need to Know Before You Donate
Before you start boxing up old clothes and furniture, here are a few key things to keep in mind:
- Only qualified charities count. You can deduct donations made to IRS-recognized nonprofit organizations (501(c)(3)s), such as Goodwill, Salvation Army, or local shelters.
- Items must be in good or better condition. The IRS requires that donated goods be “in good used condition or better.” Damaged or heavily worn items generally aren’t deductible.
- Keep proper records. Always get a receipt from the charity — it should list the date, organization name, and a brief description of what you donated.
- Know when extra paperwork applies.
- If your total non-cash donations exceed $500, you’ll need to file IRS Form 8283.
- If a single item or group of similar items is worth more than $5,000, a professional appraisal is typically required.
How to Estimate the Value of Donated Items
Instead of searching endless “donation value charts,” focus on the two principles the IRS uses: fair market value and condition.
Fair market value is the resale price — what a willing buyer would pay for that exact item in its current state. For example, gently used designer clothes or high-end electronics hold more value than older, worn-out versions.
That’s A Write-Off automatically suggests fair market value ranges based on real-world comparable data, condition, and category — eliminating guesswork and spreadsheets.
Here’s how it works inside the app:
- Add your donated item (like “Men’s Jacket” or “Coffee Maker”).
- Choose its condition (“Good,” or “Fair”).
- The app instantly estimates fair market value using verified IRS-based valuation data.
- Save your donation, attach a digital receipt, and track it all in one place.
No manual math. No missed deductions. Just a clean, organized donation log ready for tax time.
Claiming Your Donation Deduction
When tax season rolls around, your total charitable contributions go on Schedule A of your Form 1040 (if you itemize). You don’t need to submit your itemized list to the IRS — just keep it in your records.
To stay audit-ready:
- Keep digital copies of donation receipts.
- Maintain records showing how you determined each item’s value.
- If you donated large items (like a car or furniture set), keep photos or documentation of their condition.
That’s A Write-Off automatically stores these records and generates a year-end summary that fits neatly into your filing workflow — whether you use an accountant or prepare your own taxes.
Why Not Use a Manual List or Spreadsheet?
While spreadsheets and paper receipts work in theory, they’re easy to lose, miscalculate, or forget about until April. That’s where mistakes happen — and where valuable deductions get left behind.
That’s A Write-Off is designed to handle:
- Automatic item valuation (no guessing or Googling prices)
- Digital recordkeeping for IRS compliance
- Real-time totals so you can see your donation value grow throughout the year
- Free and simple setup — no credit card required
Give More. Deduct Smarter.
Donating your gently used items helps your community — and your wallet. The key is keeping accurate records and assigning fair, defendable values.
With That’s A Write-Off, you can:
- Log donations in seconds
- Instantly calculate fair market value
- Store receipts and photos
- Generate a complete tax-ready report
Save time, stay organized, and maximize your charitable impact.
👉 Start tracking your donations for free at
ThatsAWriteOff.com
