Fair Market Value of Vehicle vs what appears on 1098-C

[sandrawa]

So for 1098-C it shows value of $4500 for my vehicle. I check KBB Trade in value in poor condition and it lists it at $4000. When I input into turbotax it uses the $4500 value, but shouldn't it use $4000? I heard it is the lower of these two values?

[DaveF1006]

Yes, use the lower amount because that is the Fair Market Value of the car.

[sandrawa]

But turbotax doesn't allow me, it tells me to use the amount on the form 

[LindaS5247]

You can enter your donation value in TurboTax as follows:

In your search bar at the upper-right side of your screen enter "1098-c"

Choose "I'll Value Them"

Enter you relevant information:

Follow your screens through and enter your Form 1098-C. See the exception explained below.  

You can enter the lower value of your car, but you must meet one of the exceptions:

Please read the exception below.  This exception must be met in order for TurboTax to accept the "lower value" than what is on ‌Form 1098-C.

Exceptions to the sale proceeds limitation

A vehicle donation deduction over $500 is based on its fair market value and isn't restricted by the sales amount if the charity does any of the following:

• Keeps the vehicle for its own use
• Makes "material" improvements to it before selling it
• Decides to give the vehicle to a needy individual at no charge or at a price that's less than it is actually worth

If box 5a or 5b is checked off on Form 1098-C, your donation is typically eligible for an exception, and you can typically deduct the car's value.

Also refer to the instructions for Form 1098-C for a further explanation.  Click here for 1098-C Instructions.

Click here for information on Form 1098-C.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support.