Car to charity but no1098.Letter says"car sold for $500 or less". Stated IRS requires vin if itemizing. Enter it thru "Its Deductible" at $500, but tax meter didn't drop.

[pro88]

Is the way I itemized it really that simple?

Doesn't irs want to know ANYTHING about the $500 car?

I read several answers to this question: there's a form to fill out?

IRS wants a condition report?

Why didn't the tax meter drop when "Done" clicked? It did for each of my Goodwill ddonations. I'm extremely worried. Please advise.

[xmasbaby0 · Accepted solution]

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.

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, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach.  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. Here are the Standard Deductions for 2016

Your standard deduction lowers your taxable income.  It is not a refund 

2016Standard Deductions

Single    $6300  (65 or older + $1550)

Married Filing Separately   $6300  (65 or older +  $1250)

Married Filing Jointly           $12,600  (65 or older + $1250@)

Head of Household $9300  (65 or older + $1550

[pro888]

I had so many deductions already before entering the car, my tax rate was at 0%.  Could that be the reason my refund didn't increase???