Donated car, how to choose method of valuation?

Forum|Forum|3 years ago
April 17, 2023
2 replies
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I donated a car to my local public radio station and have a receipt showing the sale price.

But the dropdown menu in the Charity/Donations section is asking me which method I used

to value the car. I don't know what to choose. None of the options work for me.

xmasbaby0

Level 15

DONATING A CAR

https://ttlc.intuit.com/questions/2565781-how-much-can-i-deduct-for-donating-a-car

A charitable donation almost never changes your tax due or refund all by itself. First, your donation does not count "dollar for dollar"--it is calculated by a percentage based on your tax bracket. You need a LOT of other itemized deductions like mortgage interest or property taxes, medical expense, etc. to itemize and exceed your standard deduction.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts) The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income. It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950 (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950 (65 or older + $1750)

MARRIED FILING JOINTLY $25,900 (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD $19,400 (65 or older +$1750)

Legally Blind + $1750

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

jane5Author

Level 2

Thanks for all this. I was told, perhaps wrongly, that even though I don't itemize my deductions and wouldn't get any tax benefit for Federal taxes, that I would get it for my state (Oregon), which is why I listed the donation.

Hipnme

Level 2

Enter NADA in your browser and enter your vehicle info to get valuaton.

PattiF

Level 15

Line 18 of charitable contributions come straight from the federal. Gifts to Charity amounts will show reduced amounts if they are limited on the federal return. You can itemize on OR while taking the standard deduction on the federal.

@jane5

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