You can do this easily through TurboTax.
Ask
the charity for documentation. If it sells the vehicle, IRS rules state that it
must inform you of the sale amount within 30 days, generally on a Form 1098-C.
Regardless of whether it keeps or sells the vehicle, the organization must
provide you with a written acknowledgement that serves as your proof of the
donation.
At a minimum, the document must include your name and Social Security
number, the vehicle identification number, the date of contribution and a
statement that either lists all goods and services you receive for the donation
or confirms that you received nothing in exchange.
Here's how to do enter your car donation:
·
Sign in to your TurboTax Account
·
Click “Continue your return”
·
Click “My Account” located in the blue
menu bar towards the top of your screen
·
Select “Tools”
·
Select “Topic Search”
·
Type “donations”
·
TurboTax will automatically navigate to the “Donations
to Charity” section
·
On the "Did you make any donations to
charity in 2016?" Click Yes
· Follow along the interview.
Here's some extra info about donating your car that you may find useful
- If the charity sells your car sells for $500 or less, you can deduct $500 or your car’s fair market value, whichever is less. For example, if your car is valued at $650 but sells for $350, you can deduct $500.
- Most charities will report the sales price of your car to you on Form 1098-C.
- You must have documentation of your donation. At a minimum, the documentation you receive from the charity must include your name, the vehicle identification number, the date of your donation and a statement describing the goods and services you received, if any.
If
the organization is going to sell the vehicle, the IRS limits your deduction to
the sale price, even if it’s below the market value. However, if it sells for
$500 or less, you can claim a deduction for the lesser of its fair market value
or $500.
If
the organization plans to keep the vehicle, then you can deduct the value you
found online or buy appraisal. If that value is greater than $5,000 and the
charity doesn’t sell the vehicle, then the IRS requires you to obtain a written
appraisal before claiming a deduction.
If a charity uses your vehicle for their own purposes (such
as a local Goodwill using your van to pick up donations) and eventually sells
it, and is able to provide proof of its use in the meantime, you may be able to
deduct the vehicle’s original value rather than its lower sale price.
