Car Donation Tax Credit

 Car Donation Tax Credit

Car Donation Tax Credit

A tax write-off for a car donation is a way that you can a benefit from the non-cash charitable donation of a motor vehicle. In most cases, donated vehicles that sell for less than $500 are able to be claimed at the fair market value up to $500 without filling out any extra paperwork.

Car Donation Tax Deduction – How To Get The Maximum Tax Benefit Out Of Your Vehicle Donation

Donating your car or vehicle to charity can be a great way to get a 2021 federal tax deduction (state income tax deductibility depends on state law), and Wheels For Wishes makes it easy. If you would like to help your local Make-A-Wish® and get the maximum tax deduction, then you’re already almost done. It’s as simple as filling out the little form to the right or calling 1-855-242-9474. We make the process easy, and you get the most good (and highest tax deduction) for your car. Not only that, but you are also helping a local child’s wish come true.

How Car Donation Tax Deduction Works

The information below is intended to provide general information only and is not intended to be tax advice. Tax issues are individual to each donor and change year to year. Please check with your own accountants, advisors and tax preparers with regard to all deductions, tax preparation and tax advice issues.

Prior to January 2005, the IRS was allowing people who donated to a qualified car donation program to take a tax deduction based on their vehicle’s market value no matter how much or how little the vehicle sold for. Determining the market value of a donated vehicle is often quite difficult and time-consuming, which made determination of the amount of the tax deduction confusing. Fortunately, as a result of the new tax law that went into effect in January 2005, the IRS has taken the guesswork out of determining the value of your donated car, truck, RV, boat or other vehicle.

The IRS Allows The Taxpayer To Claim A Charitable Tax Deduction As Follows:

We make it easy to get the maximum tax deduction for your vehicle donation! Simply filling out the quick form to the right (or call 1-855-242-9474) and we take care of the rest. Your vehicle is picked up, sold, and proceeds benefit your local Make-A-Wish®, but you also get a tax deductible receipt.

If the donated vehicle is sold for less than $500, you can claim the fair market value of your vehicle up to $500 or the amount it is sold for if less than fair market value.

If the donated vehicle sells for more than $500, you can claim the exact amount for which the vehicle is sold.

For any vehicle sold for more than $500, the exact amount it is sold for will be stated on your notification mailed to you, which in turn will be your charitable tax deduction. For additional information, the IRS provides A Donor’s Guide to Car Donations (Publication 4303 linked below), which details the determination of the value of your donated vehicle. As always, we help people donate their cars every day, and we would be happy to help you do the same. Feel free to call us at 1-855-242-9474 with any questions you might have and one of our representatives will help you.

Four Simple Categories For A Car Donation:

A tax write-off for a car donation is a way that you can a benefit from the non-cash charitable donation of a motor vehicle.

In most cases, donated vehicles that sell for less than $500 are able to be claimed at the fair market value up to $500 without filling out any extra paperwork.

If your donated car sells for more than $500, you will be able to claim the exact amount for which your vehicle sold with a 1098-c form or a 8283 form. The Form 1098 C is specifically for motor vehicles, the Form 8283 is for general property. Both can be used to file for a car donation.

If you are looking for a car donation tax credit of over $500 but less than $5,000 you’ll have to fill out a 1098-c form or a 8283 IRS Form for a non-cash charitable contribution. A tax deduction for a donated car is a simple step within the document in section A of the 8283.

A car donation tax credit for over $5,000 will need a 1098-c form or a 8283 form with a written appraisal. You can find this simple step within section B of the 8283 IRS Form for non-cash charitable contributions.

According to the American Jobs Creation Act of 2004 there are specific documents and record keeping required when donating non-cash items. Here is a chart to help you with the filing of your car donation tax write off:

Suggestions On How To Get Your Tax Deduction For A Car Donation:

Set up a car donation with an IRS registered 501(c)(3) charity of your choice. With Wheels For Wishes all you need to do is fill out an online donation form or call us at 1-855-242-9474 and we’ll do the rest for you!

Depending on the State, a title may be needed to complete the donation process. Click here to find out more about your State’s title laws.

When your donation process is complete, request a receipt from the charity program. With Wheels For Wishes your receipt is automatically sent to you.

When you receive your car donation receipt hold onto it for next year’s taxes.

When you are filing your taxes in 2021 for last year’s car donation all you have to do is fill out a Form 1098 C and attach it to your federal tax return. The Form 1098 C is specifically for motor vehicles, the Form 8283 form is for general property. Both can be used to file for a car donation.