The price the charity obtains for your car in a sale is usually the amount of your deduction. For example, if the charity sells the car at auction for $3,000, your deduction is limited to $3,000, even if the fair market value is $4,500. However, if the charity sells the car at a discount to a needy individual or keeps the car for its own internal use, then you can claim a deduction for its fair market value.
For 2016, you would have to have made the donation by 12/31/2016.
Charitable Contributions are part of itemized deductions. To be a benefit on your tax return, the total of all of your itemized deductions must be greater than the standard deduction. Other deductions that are included in the calculation of itemized deductions are real estate taxes paid, state and local income taxes, donations to charities, medical expenses greater than 10% of your adjusted gross income (7 1/2% if over age 65), and other miscellaneous itemized deductions.
The standard deduction is an amount that the IRS gives to everyone so that everyone will have some income that is not subject to federal income tax. The amount of standard deduction depends on your filing status. See the chart attached below. If you are married filing a joint tax return, your itemized deductions must total more than $12,600 before you will have a reduction to your taxable income.
