I bought brand new clothes and donated them, I still have my sales receipt. How do I enter the value shown on that receipt?

[mesquitebean · Accepted solution]

To use your own values you can enter them as a custom item.  For your records, be sure to hang on to that sales receipt as well as the receipt from the charity.

The 2 images below show how to enter a custom item in ItsDeductible and assign a custom value.

[mesquitebean]

@robbduss
For valuation you use the FMV (fair market value.)    When preparing your return, TurboTax will ask you what method you used to determine FMV, and there are  6-7 choices in a dropdown menu.

Read more about charitable donations, FMV, recordkeeping requirements, etc. in this IRS Publication 526--Charitable Contributions:

<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p526">https://www.irs.gov/publications/p526</a>

[mesquitebean]

@robbduss
NOTE:  I edited this comment 12/4/18:

I originally said that if it's a charity such as a thrift shop that will be reselling the clothes at reduced prices,  that the FMV for newly-purchased items you donate might be less than what you purchased the new item for.  But what I stated may not be correct.   We've also been discussing this in a backroom, and another Superuser has pointed out that a taxpayer may not need to consider that when donating new clothing items as long as Fair Market Value (FMV) is used to value it.  FMV is what a willing buyer would pay a willing seller in an open market.    So you'll need to go by FMV, whatever that is in your case.

[mesquitebean]

@robbduss
This thread has been edited.  Please return to the forum to see the full info.

[Opus 17]

Fair market value is what a fair buyer would pay to a fair seller.  You don't need proof that that is actually what the charity received for the items.  For example, if you buy a shirt for $30 and it is new with tags, but the charity sells all clothing items for $4.99 regardless of condition, your donation value can still be $30.  You don't have to account for the price the charity gets.

Most of the time, what you paid for something that is new with tags will be a good indication of fair market value.  I can always imagine hypothetical exceptions: for example, if you pay a high price for a designer handbag and find out it is counterfeit, the fair market value is its actual value, and not the price you paid.  But generally, you can use the price you paid.

[fanfare]

If you put that item for sale on ebay you won't get the ticket price you paid. That's because buyers are looking for a price reduction, and will go elsewhere.

[Opus 17]

I think that's rather nitpicking.  If I buy a box of copy paper for my church (which I have) for $25 at Staples, you could just as easily say that anyone on eBay will pay less because they are looking for a bargain so it's not really worth $25.  The fair market value is not necessarily the lowest possible bargain price for an item.

The IRS actually has an entire publication on how to determine FMV for donated items.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p561.pdf">https://www.irs.gov/pub/irs-pdf/p561.pdf</a>

"Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts."

"Factors. In making and supporting the valuation of property, all factors affecting value are relevant and must be considered. These include:
• The cost or selling price of the item,
• Sales of comparable properties,
• Replacement cost, and
• Opinions of experts."

"The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution.
The cost or selling price is a good indication of the property’s value if:
• The purchase or sale took place close to the valuation date in an open market,
• The purchase or sale was at “arm’s-length,”
• The buyer and seller knew all relevant facts,
• The buyer and seller did not have to act, and
• The market did not change between the date of purchase or sale and the valuation date."

[noodad]

> How do I enter the value shown on that receipt?

You don't.

When claiming a deduction for charitable contributions of property, you're expected to report the "fair market value" (FMV) of it. That is, as other answers have pointed out, what you believe to be a typical price that a buyer and seller would agree to in an open market.

This value isn't necessarily the same as the price you may have paid for earlier. In most cases, it probably isn't. Generally for any item it would be less than the "sticker price" or suggested retail price.

Besides, you may or may not have paid the sticker price either? Generally speaking, you might buy things on sale, or using some promotion you found. Or at a discount store. Or even at a thrift shop. So, the price you paid would often have little to do with FMV. 

[jaytheus32]

Well the thing is you’ll have the survey card for the chance to win a gift card. And on that gift card it has the website for Goodwill. As well as, a log, track and print receipt for your tax donation. And 10% off on your next goodwill purchase for in store credit. 

[strongmind772]

I don't see a link or anything to access information about how to enter the value for NEW men's shoes I donated to Goodwill.  Please someone help me.  Thanks.

[ErnieS0]

Enter new shoes in Items in TurboTax @strongmind772. TurboTax includes suggested values. You can also use a price you find online or in a store. To use TurboTax's suggested values:

1. Tap Guide Me on How Do You Want to Value Your Donations?
2. Ener the Date of Donation (mm/dd/yy)
3. Tap the Add or Edit Items
4. You will see a pop up called Browse Categories
5. Type shoes in Search. The suggested value for adult athletic shoes is $17 and $21 for dress shoes.
6. Enter the quantity and tap Add Items to My Donation

[savesomemoney]

At Goodwill shoes all have the same price of $4.50 or $5.00.  But nice or new shoes or boots for example are behind the counter and come out by request.  They go for $20 or $30, but a shiny new pair of name brand cowboy boots could be $40.

[JohnW152]

Yes, some thrift store items go for more than others.
So while it might be common for most boots and shoes to go for $5 a pair in your area thrift store, other premium brands or newer pairs might go for higher.  Just be reasonable.   
Your donation is worth what's called the fair market value.  This value is the amount someone would willingly pay for the item.  You can estimate it by determining what you'd pay for the item at a thrift store.
@savesomemoney