How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation; the charity gets your gift and you get tax deduction. Below are some simple steps to make a car donation.

1. Understand the rules. A good place to read the government rule on car donation is IRS Publication 4303, A Donor's Guide to Car Donations (available on the IRS's website at www.irs.gov). This guide outlines some important rules regarding car donation. For example, one important rule states that car donation must be made to qualified organizations in order to be tax deductible.

2. Determine the value of your used car. Although the blue book might help you determine the value of your car, you should read IRS Publication 561, Determining the Value of Donated Property (available on the IRS's website), to see what your car really worth.

3. Find a charity to donate your vehicle. If you are associated with any charity or non-profit organizations, that organization might be your choice for donating your car. Otherwise, check the Yellow Book or search on the Internet to find an organization to which you feel like donating your car. After you have identified a candidate, you should review IRS Publication 78, which is a list of organizations eligible to receive tax-deductible charitable contributions. This document is also available on the IRS's website and it's searchable. Make sure the candidate charity is eligible. Otherwise, you might not get your tax deduction!

4. Make your donation. After you have made the donation, make sure to ask for a written acknowledgement from the charity. You will need to attach this acknowledgement to your tax return in order to get your tax deduction.

John Lee is a freelance Internet writer. He has written articles for websites such as Car Donation Helper, (http://www.car4donation.com)

In The News:

Too many taxes, anti-rich mindset need to go for economy to be back on its feet  Times of IndiaThe economy is in bad shape. There is no more debate about it. With a second innings of a super-stable government, we should be looking at a double-digit ...
E-assessment scheme for faceless scrutiny of income tax returns notified  Economic TimesThe finance ministry has notified the e-assessment scheme 2019 for conducting faceless scrutiny assessment of income tax returns (ITR). The scheme involves ...
New Income-tax law – third time lucky?  Moneycontrol.comHimanshu Parekh. The current Income-tax Act, enacted in 1961, is nearly six decades old. With time, there have been a plethora of amendments making it a ...
How to use NPS to reduce your income tax this year  LivemintYou should start planning for income tax if you have not done so far. Among other options, you could closely look at NPS or National Pension Scheme to save ...
Income tax department relaxes time for applying for compounding of offences  LivemintNEW DELHI : The income tax department has relaxed time for applying for compounding of income tax offences by launching of a one-time facility. The Central ...
What to expect on personal taxation from the Direct Taxes Code  BusinessLineThe report of the task force on Direct Taxes Code (DTC) submitted to the Finance Minister on Monday is yet to be made public. But sources say that the panel ...
New income tax rule on insurance maturity proceeds: 5 things to know  LivemintThe new income tax rule on receipt of maturity benefits from insurance policy came into effect from 1st September.A higher TDS will be levied if the insurance ...
Millennials, Taxes or Failed Policy? Blame Game Ensues as Wheels Come Off India's Auto Sector  News18The country's once-booming auto sector — seen as an important barometer of overall economic health — is in the slow lane, with sales slumping for the ...
How your business structure affects taxes  Economic TimesRelevant business structure attracts a certain tax liability and it is important to consider the tax implications before finalizing the formation.
France to cut household taxes by 9.3 billion euros - Les Echos  EuronewsPARIS (Reuters) – Tax cuts for French households will amount to 9.3 billion euros ($10.3 billion) next year, Les Echos reported in a preview of.
Govt hoping for windfall gains from tax amnesty scheme  Business TodayAt a time when the government is scurrying for every penny that counts - because of fiscal uncertainty arising out of a slowing economy - it can hope to get some ...
CBDT launches one-time facility for compounding of income tax offences  Economic TimesA one-time facility to apply for compounding of income tax offences has been launched and taxpayers can avail this opportunity by December 31, a latest CBDT ...
Google will pay over $1 billion after French investigation over dodged taxes  The VergeGoogle has agreed to pay a $550 million fine to settle an investigation in France over its tax practices, Reuters reports.
Be aware of the taxes to pay while buying, selling or letting out a house  Moneycontrol.comCarefully preserve the records of your financial transactions relating to the house property, proof of payments, sources of investment etc.
The new tax plan |India Today Insight  India TodayThe Modi government considers a Donald Trump-style overhaul of India's direct taxes to increase compliance and reduce 'tax terror'.
Why so many non-religious Europeans pay church taxes  The EconomistIN THE Old Testament, priests are told to take a tenth of every believer's crops as a tax to support the faith. In these latter days, they can outsource the job to the ...
Taxing wealth at lower rate than income is wrong, says thinktank  The GuardianThe government could gain £90bn in extra revenue over five years if it taxed income from wealth in the same way it taxes income from work, according to a ...
Apple has day in court over Irish tax bill  Financial TimesIf all goes to plan for Apple, this week will be all about the iPhone 11. But Friday's product launch will come just after *fresh* headlines about news it would rather ...
The New Tax Math for People Living in High-Tax States  The Wall Street JournalMore snowbirds are expected to make a permanent move as the curbs on state and local tax deductions are starting to be felt. The Tax Cuts and Jobs Act of ...
Government to tweak Income Tax Act, won’t replace it with direct tax code  LivemintNEW DELHI : The government is unlikely to replace the Income Tax Act with the direct tax code, and will only incorporate select suggestions from the draft law to ...
GST Council meets next Friday; tax rate cut to hinge on revenue position  Moneycontrol.comThe all-powerful GST Council will at its Goa meeting next week consider demands for reducing taxes on products ranging from cars to biscuits keeping in mind ...
Delhi: ED raids income tax officer, books him for money laundering  India TodayThe Enforcement Directorate (ED) said on Saturday that it has raided multiple locations linked to IRS officer Neeraj Singh, a commissioner in the income tax ...
UP Ministers To Pay Their Own Taxes, Ending 38-Year-Old Law That Made The State Pay Them  ScoopWhoopIn UP, a law has been in existence for the last 4 decades which ensures that the state ministers do not pay their taxes since the state exchequer takes care of this ...
Reviewing The Democratic Candidates' Tax Plans. First Up: Bernie Sanders  ForbesThere are twenty candidates left vying for the Democratic nomination for President. Each of them have (or better have) a tax plan. Let's take them on one-by-one, ...
Income tax brackets to change soon? Panel suggests fresh income tax slabs  Business TodayA tax panel has proposed significant changes on the Income Tax Act, which dates back 68 years. A Direct Tax Code task force headed by CBDT member Akilesh ...
Hunt for new tax streams underway  Bangkok PostPrasong Poontaneat, the finance permanent secretary, has delegated the Revenue Department to seek other tax sources to offset forgone revenue in the event ...
College student tried to hack into Trump’s taxes by creating a fake FAFSA application  The VergeTwo college students are facing federal prison time for attempting to hack into President Trump's tax returns, as reported by CyberScoop. Andrew Harris, 24, and ...
Is it time to switch income tax with a sales tax?  The GuardianIs it time for the US to consider switching from income tax to a progressive consumption tax as a way of addressing growing wealth inequality? Many economists ...
Opinion | It’s time for a direct tax regime that’s growth-focused and fair  LivemintA more efficient direct tax system can create space for a lower and less complicated GST that could boost economy activity.
Income tax benefits on costs of education under Section 80E to Section 80  LivemintThe Income Tax Act allows tax benefits for a loan taker for higher education when certain conditions are met.Tax benefits have been laid down under Section ...
Are there special NRI/RNOR income tax provisions? Answers to your personal finance queries  The HinduQ. I have opened a capital gains account with a balance of ₹20 lakh. A major part of this would go to my builder who will be handing over the possession of our ...
Income tax dept launches faceless e-assessment scheme. 5 things to know  LivemintNEW DELHI : With the launching of faceless e-assessment facility, all your income tax returns (ITR) would be assessed and scrutinised in complete electronic ...
New income tax rules come into effect from September 1. Latest changes explained  LivemintSome income tax changes announced in this year's Budget comes from September 1, 2019. The full Budget for this year was presented in July this year.
Trump again dangles a promise of tax cuts  CNNWashington (CNN) President Donald Trump is reviving last year's promise to slash taxes for America's middle class as he seeks to bolster his reelection bid ...
Walmart dodged up to $2.6 billion in US taxes, former exec says  QuartzWalmart, the world's largest company, “improperly avoided” up to $2.6 billion in US taxes through an elaborate tax dodge involving a “fictitious” Chinese entity, ...
Labour's tax on City deals would be a big vote winner  The GuardianFinancial sector is rattled by John McDonnell's support for an FTT that would raise about £7bn a year.
HMRC faces legal fight for handing Britons' data to US tax officials  The GuardianCase could have implications for British citizens born in US, who risk having accounts frozen.
Dont let future Lijjat Papads die because of tax procedures: Tax tribunal  Business StandardIn a rare development, an income tax tribunal has suggested to the government to help new semi-skilled entrepreneurs become tax compliant instead of forcing ...
You need a systemic approach to tackle systemic corruption: Arvind Virmani  LivemintArvind Virmani, the chief economic adviser in the finance ministry from 2007 to 2009 and currently chairman of the Foundation for Economic Growth and Welfare, ...
7 changes in income tax laws that come into effect from Sept 1  Economic TimesHere is the list of the seven main changes in tax laws that will come into effect from September 1.
Pay penalty of Rs 10,000 for late Income-Tax filing after December 31  Business StandardI have received money from a friend abroad amounting to over Rs 2 lakh. He has said I can repay him at ease. When filing returns, can I declare it as a loan to ...
Govt gets tax bonanza from online ads on Google, Facebook  LivemintNew Delhi: Tax receipts arising from a levy on payments made to digital advertising platforms such as Google and Facebook from Indian entities jumped 59% in ...
No Prosecution for Minor Offences upto Rs 25 Lakh, Two-member Collegium For Higher Tax Defaults  News18New Delhi: Finance minister Nirmala Sitharaman on Saturday announced that prosecution for procedural or tax defaults below Rs 25 lakh will be sanctioned ...
Skoog: And with WHOSE taxes?  Minnesota DailyImmersed in the 24-hour news cycle, our own understanding of the world is shaped by the media we choose to view and avoid. Amidst the democratic debates, ...
To create a business-friendly tax framework  BusinessLineThe Income Tax department should leverage technology for certainty and efficiency in the issuance of withholding tax certificates.
ACAUT asks govt to put an end to illegal taxes  Nagaland PostACAUT Nagaland has drawn the attention of the state government to the persistent problem of “illegal and unabated taxations” imposed on all and sundry ...
This South Carolina court ruling could give Amazon 'significant additional tax liabilities'  Yahoo FinanceA ruling from a state tax court in South Carolina could mean a big sales tax bill for Amazon.
ITR processed? Here's how to request intimation notice u/s 143(1)  Economic TimesOnce your income tax return (ITR) is processed, the tax department is required to send you an intimation notice under section 143(1). This tax notice will tell you ...
Urgent need to cut both corporate and income tax: Saugata Bhattacharya, Axis Bank  Economic TimesTax cut is the most effective way of getting out of this slowdown and the sentiment.
What to expect from the Direct Tax Code  Forbes IndiaA report, which aims to overhaul the Income Tax Act, has not been released to the public, but its recommendations are expected to cover four primary areas.
Moving like billionaire Carl Icahn to a low-tax state may backfire for you  CNBCIf you're thinking of following Carl Icahn from high-tax New York to sunny Miami, you'll need to do more than just change your driver's license to make it official.
Police probing Budweiser-maker AB InBev in alleged New Delhi tax evasion case  LivemintNew Delhi: Police in New Delhi are probing a case of alleged tax evasion involving Anheuser-Busch InBev, according to a police officer and a document seen ...
States opposing cut in tax rate on auto ahead of GST council meet  India TodayWhile the government is keen to go for a reduction in GST rate cut from 28 per cent to 18 per cent for the auto sector, the move's negative fallout in the form of ...
Philippines Not Satisfied With Lower Tax Take From Online Gaming  BloombergPhilippines Finance Secretary Carlos Dominguez wants the main tax agency to shut down and file cases against online gaming operators that haven't paid their ...
Tax Notice To Be Issued With Document ID Number Starting October  NDTV NewsFrom October 1, any notice issued by the Income Tax department for tax claim will have to be issued with a Document Identification Number (DIN).
Oil companies flag roadblocks in rationalising taxes on jet fuel  Economic TimesNEW DELHI: Oil marketing companies have cited issues like sales tax as a barrier to the Civil Aviation Ministry's plan to rationalise additional charges that ...
Tough to claim input tax credit for donated goods  Economic TimesGST authorities have, based on the facts of the case, denied ITC claims, especially when the company was not distributing its own products.
Income tax benefits you get in sovereign gold bonds: 5 things to know  LivemintSovereign gold bonds are a good option to take exposure to gold as an asset class, say financial planners. After from fetching 2.5% interest, sovereign gold ...
Nebraska property tax ballot drive gains steam, donations  Associated PressLINCOLN, Neb. (AP) — A petition drive that seeks to lower Nebraska property taxes by sharply cutting state revenue is gaining steam and donations despite ...
ITR filing: Penalty you will pay for not filing income tax return before deadline  Business TodayThe last date for filing your tax returns for assessment year 2019-20 is Saturday, so procrastinators are now beginning to run out of time. Delaying tax filing can ...
Tax relief to SMEs | Small businesses may be exempt from filing FY18 GST returns  MoneycontrolThe Goods and Services (GST) Council may exempt small assessees from filing returns for FY18, reports BusinessLine. The Council, which will be meeting on ...
Best of BS Opinion: Price cuts as good as tax cuts to boost a slow auto mkt  Business StandardThe automobile industry's demands for tax concessions from a government struggling with a severe revenue shortfall is disingenuous. Given the profits and cash ...
HNIs using remittances plan to evade taxes: SIT  Economic TimesThe LRS is extensively used by HNIs to transfer funds abroad up to the permitted limit of $250,000 every financial year. Under LRS, there is no restriction on the ...
Death, taxes, and Freiburg overachieving  DW (English)Christian Streich's players sealed their best-ever start to a Bundesliga campaign. Their win at Hoffenheim was also a clash between two very different ...
The Case for a Goldilocks Carbon Tax  ForbesEarlier this week a group called the Climate Leadership Council unveiled a proposal for an economy-wide carbon fee. Proposals for carbon pricing are not new.
Tax on snacks would have 'huge impact' on obesity, say experts  The GuardianA snack tax of 20% on biscuits, cakes and sweets would have “a huge impact” on obesity levels in the UK and be more effective than the current levy on colas ...
Trump rules out for now cutting capital-gains taxes  CNBCPresident Donald Trump has ruled out for now slashing taxes on capital gains after a meeting with his advisers, a White House spokesman said on Wednesday.
How to check income tax returns (ITR) status  LivemintChecking the status of your ITR on the income tax department's e-filing website is simple.Here is a step-by-step guide on how to check ITR status and track ...
The Flaws of Elizabeth Warren's Wealth Tax Plan | Daniel Kowalski  Foundation for Economic EducationThe media praises Elizabeth Warren as the 2020 candidate with “a plan for everything." Many of her supporters are drawn to her because she is clear about ...
New income tax rules that impact TDS: All you need to know  Business TodayFrom increased TDS outgo on purchasing immovable property and life insurance maturity proceeds, to two new areas where TDS will now be slapped on, here's ...
In relief to tax-payers, 2 more ITR forms will be pre-filled from FY21  BusinessLineTwo more forms for filing Income-Tax Returns (ITR) will be pre-filled from the next financial year (FY21), which will provide relief to taxpayers who do not seek ...
How Elizabeth Warren's proposed tax could impact Jeff Bezos and Bill Gates  LivemintSenator Elizabeth Warren of Massachusetts, if elected President in 2020, has also proposed an 'Ultra-Millionaire Tax'.This 'wealth tax' could impact billionaires ...
ITR filing 2019: 5 websites to e-file tax returns before August 31 deadline  MoneycontrolWith only three days left to file your income tax returns (ITR) for FY 2018-19 and assessment year 2019-20, here are five websites to e-file your returns.
Brazil tax reform slides into confusion as key official fired, Bolsonaro wades in  India TodayA key figure in Brazil's plans to reform the country's complex tax system was fired, according to government sources, reflecting disagreements in cabinet about ...
Jammu traders demand extension of deadline for filing income tax, GST returns  India TodayCity-based traders' body Monday demanded an extension of deadline for filing income tax and GST returns as internet and other communication channels are ...
Trump may have committed tax fraud by fabricating a loan to avoid paying income taxes on nearly $50 million  Business Insider"If he didn't actually buy the loan, this is just garden-variety fraud," a commercial-real-estate-finance expert told Mother Jones.
Tax harassment will end, assures Sitharaman  LivemintNew Delhi: Finance minister Nirmala Sitharaman assured India Inc. that businesses will not face any harassment by tax officials and that a new system has been ...
Withholding tax on foreign arbitral awards - Delhi High Court settles the conundrum  Bar & BenchThe Delhi High Court's judgment in Glencore International AG v. Dalmia Cement (Bharat) Limited reinforces the pro-enforcement stand adopted by the Indian ...
How a Trump Tax Break to Help Poor Communities Became a Windfall for the Rich  The New York TimesOpportunity zones were created as part of the Trump tax law to lure investment to distressed areas. But much of the money is fueling real-estate developments ...
Elizabeth Warren Proposes Boosting Social Security by Hiking Taxes on the Rich  BloombergElizabeth Warren released a plan Thursday to expand Social Security benefits by $200 per month with a payroll tax increase on incomes above $250000, her ...
Direct Tax Code: Panel suggests peak income tax rate of 20%, says report  Moneycontrol.comThe panel on Direct Tax Code (DTC) has suggested a cut in personal income tax rates with revised of 5 percent, 10 percent and 20 percent, ET Now reported ...
All tax refunds under new export scheme may be tough, says finance ministry  Times of IndiaIndia Business News: As the government works on an “export package”, the finance ministry has said that it may not be possible for the government to shift all ...
Bernie Sanders and Kamala Harris want to erase student debt and reform healthcare by taxing Wall Street. ..  Business InsiderA new study from the Modern Markets Initiative shows how much a financial transaction tax — like ones proposed by Bernie Sanders and Kamala Harris &...
ITR filing: How to maximise your income tax refund  Business TodayThe deadline for filing income tax returns is August 31, and procrastinators are advised to hurry to do the needful to beat possible glitches thrown up in the last ...
Income Tax serves notices to Reliance First Family under Black Money Act  The Indian ExpressResponding to questions sent by The Indian Express on the notices and the key allegations, a Reliance spokesperson replied: “We deny all the contents of your ...
Govt to rollout tax benefits on QR-code based UPI payment  Business TodayMembers of the National Payments Corporation of India (NPCI), which manages the UPI platform, have approved a proposal wherein GST benefits are extended ...
Bumpy ride ahead: Tax department in rush to fight faceless regime hurdles  Business StandardThe ambitious faceless tax administration project, set to start on October 8, will initially take up the limited scrutiny cases across the country. Within a year, the ...
Never mind ‘tax raids’, Labour – just abolish private education  The GuardianAs drivers of inequality, private schools are at the heart of Britain's problems. Labour must be bold and radical on this, says Guardian columnist Owen Jones.
Dave Trabert: Tax council should reduce taxes, not grow government  Pratt TribuneGov. Kelly says she wants her tax reform council to focus on reforms “designed with adequacy, equity, and stability in mind.” Adequacy and stability is code for ...
Durga puja 'tax': Mamata or BJP, who'll feel the pinch? |India Today Insight  India TodayWest Bengal politics is witnessing *fresh* sparks ahead of the festive season. With the ruling Trinamool Congress (TMC) and the BJP out to project themselves as ...
EDITORIAL: Scheer's tax cut a breath of fresh air  Toronto SunCanadians pay a lot of taxes. A whole lot of taxes. So much so that, according to the Fraser Institute's Tax Freedom Day report, we shelled out 44.7% of our ...
France Won't Tax Crypto-to-Crypto Trades, But Will Hit Gains Cashed Out  Bloomberg TaxFrance will tax cryptocurrency gains when they're converted into “traditional” currency, but crypto-to-crypto transactions remain tax exempt, French economy ...
ITR Filing Last Date 2019: Haven’t filed your tax return yet? 7 essential steps to file income tax return for FY 2018-19  The Financial ExpressIncome Tax Return 2019: Today is the last date for income tax return filing for AY 2019-20, and as a taxpayer, you should be aware of all the essential steps to ...
Germany is considering a meat tax to fight climate change  Business InsiderGerman politicians are considering a controversial tax on meat to boost animal welfare, fight climate change, and improve human health.
A case for a differential global carbon tax  The HinduAll nations must climb down the emissions ladder without giving up on their standard of living.
Can you claim refund on tax deducted on FD in the name of your children?  Economic TimesAs per the Income-tax Act, the income of minor child shall be included in the income of the parent whose total income after including minors income is greater.
Dutch multinationals will be forced to pay profit tax in Netherlands: Report  NL TimesMultinational companies which conduct business in the Netherlands will soon be forced to pay taxes on their profits, instead of creatively using an accounting ...
Direct Tax Code may help bring change in mindset of taxpayers, authorities  Business StandardThe report by the panel on the Direct Tax Code, currently under the consideration of the government, is believed to have suggested several measures to reduce ...

The Tax Man Cometh... To Search

You're at your office, or home, and the doorbell rings... Read More

Failure To Pay Employment Taxes ? Penalties

As an employer, you must pay employment taxes if you... Read More

Need an Offshore Sales Office in a Tax Free Environment?

The 100 year old investment-banking firm of... Read More

Getting A Second Extension to File 2004 Taxes

Millions of people file tax return extensions every year. The... Read More

SFR Substitute for Returns: IRS Action on Non-Filers

In the latest Star Wars episode, the evil empire executes... Read More

The Implications of Income Tax Charge on Estate Planning

OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More

Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorce in the United... Read More

What You Need To Know About Taxes If You?re Getting Married

It may not be high on the list of wedding... Read More

Save Money on Taxes - Let Uncle Sam Pay for Your Fun!

"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More

Understanding Basic Tax Terms

If your like many, you don't always understand what people... Read More

What Is Tax Law?

The federal tax code is complex. This complexity generally arises... Read More

How To Get An Instant Pay Raise

As a gentleman was leaving my class recently, he wanted... Read More

1031 Exchange Rules and Requirements

Following is a reproduction of the IRS's rules and requirements... Read More

Render Unto Caesar

Once a year Canadian taxpayers are required, by law, to... Read More

Tax Trap #3 -- IRS Penalties, Interest and Love Letters

As a small business owner or self-employed person, one of... Read More

Section 179 ? Tax Relief From Depreciation Rules

"Depreciation." For business owners, this word is the one most... Read More

Furnishing Evidence in E-Tax Compliance

Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This... Read More

Tips and Simple Guidelines on How to Calculate Payroll Taxes

Managing a business small, medium or big requires you to... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

Need a Copy of Your Tax Return Information?

Taxpayers have two easy and convenient options for getting copies... Read More

Tax Secrets - How Drew Miles Helped Me

How about a Tax Tip?As we all know Taxes are... Read More

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested... Read More

Tax Trap #4 -- The Quagmire of Depreciation

If you are a Small Business Owner or Self-Employed Person,... Read More

Tax Strategy - Let Washington Pay for Your Corvette, Porsche, or Air Plane

Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More