Car Donation - How To Donate A Car For Tax Credit

Okechukwu Solomon April 23, 2018

Donating a car to charity’s often one of the easiest ways to get it out of your driveway. While your donation won’t net you a tax credit – a dollar-for-dollar reduction on your tax bill – it may net you a deduction, which reduces your taxable income.


To get a deduction for a vehicle donation, you’ll need to forgo the standard deduction and itemize your deductions – which may not be worth it if you don’t have enough deductions. You’ll also need to follow the IRS’s rules about the donation.

How This Service Works

When you have a car, truck, SUV, camper, boat, or other vehicle you no longer want, donating it to charity offers a variety of benefits: You get rid of an unwanted vehicle. The organization that accepts your vehicle will use those proceeds to fund its programs, help disadvantaged citizens and make a difference in the lives of people who are hurting. You also qualify for a tax-deduction in the process.

 How a Car Donation Tax Credit Works

Throughout the United States, vehicle donations to eligible charities qualify for tax deductions; however, in different states, there are different methods for verifying eligible charities. You can contact state charity officials to know what your particular state’s regulations say, and you can verify a charity is registered with the IRS by searching IRS Publication 78. Tips for Taking Full Advantage of Your Car Donation Tax DeductionTo make sure your car donation provides the maximum benefits, follow these tips:

Check the Organization: 

Before donating your vehicle, do a little research on the organization to which you’ll be making a contribution. Ensure that the organization is eligible to receive tax-deductible gifts before donating.

Get a Receipt:

 When donating your automobile, ask for a receipt.

Consult a Tax Professional:

 If you have any questions about your deduction, talk to a qualified tax professional about the details of your car donation write-off.

 Donating to Goodwill Car DonationGoodwill

Car Donation accepts vehicle donations of all kinds, whether or not they are in working order. We haul your car or truck at no cost to you, and send you a tax receipt in the mail a few days later. Work with us for a hassle-free donation process — and enjoy a tax deduction. Are you ready to donate? Contact us today!

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