How much can i claim with my goodwill receipts? i have $8,000 right now, is that too much? i do t want to get audit. thank you!

[DianeW777 · Accepted solution]

For the typical taxpayer, $8,000 in donations at Goodwill could put you at risk for an audit. Per the IRS, if you claim a deduction of more than $5,000 per item (or a group of similar items), you must obtain a qualified appraisal of the item or group of items and fill out Form 8283, Section B. A group of similar items means property of the same generic category or type (whether or not donated to the same donee). This includes clothing, jewelry, furniture, household goods, collectibles, or decorative arts. A qualified appraisal for a group of similar items must provide all of the required information for each item of similar property. You are responsible for maintaining these records.

Generally, you can only deduct the fair market value (FMV) of what you gave to Goodwill. The items you gave usually carry a lower FMV than what you actually paid for the items. The Goodwill Donation Guide may be helpful as it provides FMV on many items.

Once you arrive at the donation dollar amount you are comfortable with and feel confident you can show the values, you can deduct that amount on itemized deductions.

• How do I enter my charitable donations in TurboTax?

If your total itemized deductions are greater than the standard deduction, this will be the best option and TurboTax will guide you.  Below you will see the standard deductions for 2023 to help you evaluate.

For single taxpayers and married individuals filing separately, the Standard Deduction is $13,850 in 2023. 

For married couples filing jointly is $27,700, and  

For heads of households, the Standard Deduction is $20,800

  

If you're at least 65 years old or blind, you can claim an additional deduction in 2023 of:

• $1,850 for single or Head of Household
• $1,500 for married or Qualified Surviving Spouse.

If you're both 65 and blind, the additional deduction amount is doubled. 

@Lynn1nn 

[Edited: 02/28/2024 | 5:30 AM PST]

[Opus 17]

You are correct that you are in a risk zone.  When you make a donation of a single item or "group of similar items" over $5000, the IRS requires that you have a signed appraisal, and you get a financial official from the charity to sign a paper copy of form 8283 listing the donation (that you mail to the IRS after e-filing the rest of your return.). And this is required even if the "group of similar items" is split between several charities.

The problem is that the IRS offers no guidance as to what actually a "group of similar items" means, or what kinds of timing are allowed.

Let's say you donate the contents of your parent's house after they pass away.  Is "furniture" a different group of similar items from "dishes and other kitchen goods" or is it all one group of "used household items"?  I'm not aware of any specific guidance (publications or instructions) that the IRS gives to taxpayers.  If you want to claim more than $5000 for donations of similar non-cash items, you may wish to consult your own professional for an expert opinion that covers your exact needs.