How to Calculate the Tax Deduction for Donated Clothing
- 1). Compare your taxable income, found on line 44 of form 1040, to the income tax brackets for the current year to find your marginal income tax bracket. The income tax brackets can be found in the most recent version of IRS publication 17. The marginal income tax bracket is the highest tax rate you pay. For example, for 2010 if you file as head of household and your taxable income equals $90,000, you would fall in the 25 percent tax bracket.
- 2). Estimate the fair market value of your clothing that you donated to charity. Some charities offer ranges of fair market values (see Resources) to assist your valuation. If the clothing is worth more than $5,000, you must have it professionally appraised.
- 3). Multiply the tax bracket percentage by the value of your deduction to determine how much you will save because of your donation of clothing. For example, if you fall in the 25 percent tax bracket and donate $400 worth of clothing, you would save $100 on your taxes.
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