Tax Deductible Car Donations

Written by Rylee Newton
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If you're donating a car to a charity, you need to make sure you can deduct your contribution on your income taxes. While there are some scams out there, it's easier than you might think to prove that a charitable organization is legitimate. With one simple phone call you can take the guesswork out of donating your car to a charitable organization.

Itemizing non-cash deductions on your income taxes is often something that IRS officials sometimes feel the need to review. If you itemize a car donation, it's important to keep all the necessary paperwork on hand for at least five years after you file your taxes. Thanks to the new Jobs Creation Act, it's easier than ever to determine the correct amount to write off on your taxes.

Required Reading Prior to Donating

The best way to verify that an organization is legitimate is to contact the IRS directly. You can do so by calling 1-800-829-1040. If you want to report a fraudulent organization, it's a good idea to contact the state attorney general. You can also find a list of organizations that are considered tax exempt by reviewing the information available online from the National Association of State Charity Officials.

If you want to review the financial records and mission statements for charitable organizations, you can check out a publication called the Cumulative List of Organizations. This publication lists organizations that are eligible to receive tax-deductible donations. It's important to note that some organizations are not listed in this publication. If you don't find your charity in this publication, it's a good idea to check with the IRS.

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