The FMV of my vehicle is $2800. Is it dollar-for-dollar better to sell it or donate it for a write off? Basically, how much money will I save on my taxes for donating?

[Vanessa · Accepted solution]

If you donate it, in order to benefit from the donation you would need to itemize your return.  Your total itemized expenses would then need to be greater than your standard deduction in order to benefit from it at all.  If you are single, the standard deduction is currently $12,000, $18,000 for Head of Household and $24,000 for Married Filing Jointly.  So, if your total itemized expenses are less than that, you will not see any savings at all.

Also, if it increases your itemized expenses so you can itemize it will just provide you with a dollar for dollar decrease in taxable INCOME NOT tax liability.  

So in the majority of scenarios, you will make out better selling a vehicle and getting the cash than donating it strictly for tax purposes.