Car Donation

[mbarraza]

Donated a car earlier this year to an "IRS approved" organization. Got a letter from organization saying car sold for more than 500 dlls.  but they want me to either send a slip that comes with this letter with my SS or to call a secure voicemail system and providing this info. Organization explaining they need SS to prepare 1098-c. Obviously don't want to give the info; really don't know what to do.   

[xmasbaby0]

https://ttlc.intuit.com/community/credits-and-deductions/help/how-much-can-i-deduct-for-donating-a-c...

Are you going to have enough other itemized deductions to exceed your standard deduction?   If not, the donation of the car will not make any difference.  Donations have no effect on your federal tax due or refund unless you have enough itemized deductions like mortgage interest, property tax, etc. to 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, 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 2020 Form 1040.

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

[Mike9241]

if you can itemize, you will not be able to claim the vehicle unless you furnish the org with your SSN.

1098-C rules

A donee organization must file a separate Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500. A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane. However, property held by the donor primarily for sale to customers, such as
inventory of a car dealer, is not a qualified vehicle. Contemporaneous Written Acknowledgment. If a donor contributes a qualified vehicle to you with a claimed value of more than $500, you must furnish a contemporaneous written acknowledgment of the contribution to the donor under section 170(f)(12) containing the same information shown on Form 1098-C. Otherwise, the donor cannot claim a deduction of more than $500 for that vehicle. Copy B of Form 1098-C may be used for this purpose. An
acknowledgment is considered contemporaneous if it is furnished to the donor no later than 30 days after the:
• Date of the sale, if you are required to check box 4a; or
• Date of the contribution, if you are required to check box 5a or 5b

with regard to your 1040 here are the requirements in order to claim more than $500 for the vehicle

If you deduct more than $500 for a contribution of a motor vehicle you must also attach a statement from the charitable organization to your paper return (you can't e-file). The organization may use Form 1098-C to provide the required information.  

[Opus 17]

When you donate a vehicle and the donee organization sells it to raise money, your tax deduction value is not the fair market value or bluebook value. The deduction value is the amount of money that the charity actually raised when they sold the vehicle, and this is reported to you and to the IRS on a 1098-C.  After you e-file your tax return, you must physically mail the original 1098-C to the IRS along with a cover page that TurboTax will print out for you.  If you don’t provide a 1098 – C to the IRS, the maximum tax deduction you can claim for a vehicle donation is $500.

If you won’t be itemizing your tax deductions or if you are fine with a $500 limit, you don’t have to share your Social Security number. Otherwise, the charity needs your Social Security number to issue a 1098-C.