20 Million Americans Overpay Taxes By Incorrectly Valuing Non-Cash Donations
PRESS RELEASE
According to IRS statistics, each year over 20 million people
who itemize on their income taxes report giving donations of clothing,
furniture, household goods and other non-cash items to charity. Unfortunately,
many of these taxpayers underestimate the value of their contributions by
$1,600-$1,700 per year or more because they do not know the correct fair market
value of their donation. As a result, the average person pays $526 more in
income taxes than required if they simply tracked and valued their donations
properly.
Valuing donations is difficult because charities do not set values. Donors are
supposed to do that, but most people have no idea what the fair market value of
their gift is worth.
Assuming “good” condition, following are some surprising valuations of commonly
donated items (2000 values):
Women's dress $35
Men's suit $95
Boy's jeans $10
Girl's sneakers $8
Can opener $7
Stuffed animal $6