You must itemize your tax deduction on Schedule A of your 1040 tax forms. If the car is a junker, it will probably be worth less than $5,000, which means you can use the Kelley Blue Book, Hearst Black Book or NADA to determine the value. This means that you must determine what the fair market value of the vehicle is before you donate. Many religious organizations may count as well but if you aren’t sure, check with the IRS before you donate.ĭon’t forget to find out the value of your old car.
Typically, these include 501(c)(3) organizations that focus on educational or assistance-based programs. You must first confirm that the organization you will be donating to is a qualified charity. However, to qualify for a charitable tax deduction, you have to follow strict IRS guidelines, including: If you are looking into vehicle donation to receive a tax credit or benefit, this could be a good choice for you. This means that cars that can't be driven due to mechanical or collision issues will typically be accepted, so if you need to donate a junk car, you're in luck. While a charity or nonprofit organization may only accept cars that are up and running, most will accept just about anything. Whatever your reasons may be you will have to figure out where to donate a car and how to donate a car. Maybe you're looking for free junk car removal, or have a favorite charity you'd like to support. Donating a car to charity starts with your decision to get rid of your junk car.
