How to Donate Your Car to Charity and Get Tax Deduction > NetSparsh - Viral Content you Love & Share

Home
>
Tax
>
How to Donate Your Car to Charity and Get Tax Deduction

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:

Self assessment tax liability for FY19-20 over Rs 1 lakh? Pay by July 31 to avoid penal interest Economic TimesIncome tax department amends TDS rules, seeks more disclosure in form LivemintSelf assessment tax liability for over Rs 1 lakh? Pay by July 31 to avoid penalty Times NowIncome Tax Department Extends ITR Filing Deadline For Financial Year 2019-20 Till November 30 India.comIncome Tax Department extends deadline for filing IT returns for FY 2019-20 to 30 November FirstpostView Full coverage on Google News

Higher fuel taxes, fewer subsidies are good policy The Times of India Blog

India changes digital tax form to include new levy on foreign e-commerce companies Economic Times

Income tax return filing deadline for FY 20 extended to November 30, 2020 Times of India

Himachal tax officials directed to dispose of all pending legacy cases Hindustan Times

Investing in ELSS to save taxes? You have to pay more now to get full tax benefit The Financial Express

Do You Know The Due Date For Filing Your Income Tax Return? Here's All You Need To Know NDTV Profit

H-1B visa holders pay billions in taxes in Trump's America Quartz India

Employees allowed to claim I-T exemption on conveyance allowance under new tax regime: CBDT Economic Times

Gratuity: Eligibility, formula, taxation and other details Times Now

How to claim income tax deduction for investments made in April - July 2020 Business Standard

New income tax slab: Rules changed, no exemption on meal vouchers & coupons Livemint

NPS gives extra ₹50,000 income tax deduction: 5 updates Livemint

How much gold can you keep at home as per income tax rules? The Financial Express

Cap the tax part of fuel prices at 50% Economic Times

IPL Money Goes To Players And Taxes Not Sourav Ganguly Or Jay Shah: BCCI Treasurer Cricket Addictor

Taxes need to be simplified for a self-reliant India: Nirmala Sitharaman Livemint

Income Tax department extends five new deadlines for Indian taxpayerss Business Standard

‘Deadline for 2019-20 tax-saving investments extended till July 31’: Income tax dept Hindustan Times

Centre gives more time for income tax filings, investments for FY20 Livemint

Taxpayer Alert! 5 changes in income tax, personal finance rules effective from July 1 The Financial Express

Taxes may be the top reason why Americans want to renounce their citizenship CNBC

Were Your 2019 Taxes a Mess? Track Your 2020 Expenses Seamlessly with This Handy App. Entrepreneur

Govt exempts properties in Delhi's unauthorised colonies from income tax Economic Times

Income Tax Return Forms are available: Can you file your ITR now? The Financial Express

Want to save income tax on EPF withdrawals? Here's what you can do Times Now

Fall in direct tax collection on expected lines and due to tax reforms, says government The Financial Express

EPF withdrawal: Transfer your old PF account to save income tax. Here's how Livemint

Your Queries: Income Tax – Resident individuals have to pay tax on global income in India The Financial Express

Advance tax: All about the first instalment to be paid by June 15 Moneycontrol.com

Tax deadline draws near: How to apply for an extension of time to file Fox Business

Centre, state tax officers can take intelligence based enforcement actions for all purposes: CBIC Economic Times

Too many taxes The Indian Express

Opinion: Kenney can reduce income taxes by cutting public sector labour costs Calgary Herald

Stimulus check: Do you have to pay tax on the money? CBS News

With petrol base price at Rs 18, you end up paying 275% in taxes to central, state govts Times Now

ITR Filing: Know the changes in Form 26AS before filing your income tax return The Financial Express

Black families pay significantly higher property taxes than white families, new analysis shows The Washington Post

Telangana Transport Department welcomes one tax, one nation The New Indian Express

It's Time for Mexico to Tax the Rich Jacobin magazine

GST investigation arm unearths Rs 40 cr tax evasion by pan masala/gutkha mfg unit Economic Times

COVID relief: 6 tax deadline extensions you must know about Moneycontrol.com

Income Tax Return filing for FY2019-20: Here is all you need to do before filing your ITR The Financial Express

3 Ways to Decrease Capital Gains Tax Daily Journal Online

Income Tax Saving: Last minute tax saving options for FY 2019-20 The Financial Express

Govt collects 7% of full-year direct tax target as of mid-June CNBCTV18

Retirees: How to Stop Worrying About Heavy CPP & OAS Taxes Yahoo Finance UK

June 30 is the deadline for tax saving investments and linking Aadhaar with PAN Business Insider India

GST tax evasion of Rs 512 crore in a month; Indore’s pan masala, tobacco, cigarette makers under lens The Financial Express

Income Tax saving with PPF, ELSS, other 80C options for FY 2020-21: Deadline ends soon [Your Queries] The Financial Express

If I'd known the term 'effective tax rate' in 2019, I wouldn't owe $8000 in taxes this year Business Insider

Why Do People Want to See Donald Trump's Tax Returns? ProPublica

Governments eye new taxes on cigarettes, homes and tech giants to pay for big budget shortfalls related to the coronavirus The Washington Post

Opinion | We can do away with income tax assessments for most taxpayers Livemint

Pritzker kicks in $51.5 million more for taxes initiative CIProud.com

Aadhaar-PAN linking to ITR filing, 8 financial deadlines extended recently amid COVID-19 outbreak The Financial Express

Government Study Suggests India Should Ease Tax On Telecom Firms Like In China BloombergQuint

Tax Lawyer Reinvented Himself as a Crusading Professor The Wall Street Journal

Income Tax Return filing: What is new in the new ITR forms for AY 2020-21? The Financial Express

Call it the ‘boss tax:’ Seattle finally finds a potent way to tax the rich Seattle Times

Income Tax Return filing: New ITR forms for FY2019-20 – Know which one is for you The Financial Express

Know these changes in Form 26AS before filing your income tax return Times Now

Bombay HC asks tax dept to refund Rs 833 crore to Vodafone-Idea Business Today

Retirees, Beware These Tax Traps on Social Security and Medicare Barron's

Income Tax – Submit details of Section 80C investments early to reduce TDS The Financial Express

PPF or ELSS? How to aim for Rs 50 lakh by investing in both tax-saving investments The Financial Express

Wealth tax on rich should aid UK's Covid-19 recovery, says Labour The Guardian

As illegal mining booms in New Chandigarh villages, ‘goonda tax’ helps ‘unrestricted’ truck movement The Indian Express

Why is India’s tax administration not in sync with MSMEs and exporters? The Financial Express

Edelweiss books Rs 2,819 cr pre-tax loss in Q4 on spike in provisions Business Standard

General Fund revenue dips in June; ETF awaiting income tax payments WBRC

Just joined your first job? Here's how income tax is calculated on your salary Times Now

Liberals aren’t giving Joe Biden credit for a radical tax plan that goes after the indolent rich MarketWatch

Exempt allowances for salaried taxpayers in New Tax Regime: Here’s all you need to know The Financial Express

Biden tells donors: I'm going to get rid of most of Trump's tax cuts 'and a lot of you may not like that' CNBC

Filing belated income tax return for 2018-19? Here is how you can file it online The Financial Express

Deductions under Chapter VI A of Income Tax Act: Know how much tax may be saved The Financial Express

Sunak damps hopes of big UK tax cuts Financial Times

Uncle Sam is paying 5% interest on your late tax refund. And yes, it's taxable CNBC

Tax-saving investments for FY2019-20 allowed till July 31 Livemint

NPS Tier II income tax benefit is available only to these subscribers – Find out whom The Financial Express

New Tax Regime: You can still get tax benefit on NPS contributions – Check when it is possible The Financial Express

Congress writes to PM Modi, seeks rollback on tax levied on forces disability pensions - Republic World Republic World

Gross advanced tax collection falls by 31% in first quarter of fiscal year ThePrint

The Supreme Court decision on Trump's tax records just became more urgent than ever CNN

U.S. Withdraws From Global Digital Tax Talks The New York Times

IRS To Pay Interest On Your ‘Late’ Tax Refund Forbes

Less than half of Lancaster County school districts raised taxes in 2020-21; here's who did [chart] LancasterOnline

Estimated Taxes Due July 15: Tax Return Pros Warn About Special Issues For 2020 Forbes

Unemployment taxes could nearly triple by 2022 in Washington due to COVID Seattle Times

Social Security Double Taxation Does Exist in These 13 States Kenosha News

Are you aware of these lesser-known tax saving options? Times Now

Saudi Arabia Isn’t Just Raising Taxes The Atlantic

IR officials empowered to recover overdue non-tax revenue The News International

Tax on your gold and real estate investments Livemint

Every state with a progressive tax also taxes retirement income Illinois Policy

Workers’ migration, high taxes hurt strong beer, country liquor Times of India

Delay in tax refund worries exporters DAWN.com

New ITR forms for FY2019-20: Know which one is applicable for you Times Now

ITC Q4 Results: Lower Corporate Tax Boosts Profit Even As Sales Decline BloombergQuint

Keeping Your Own Money ? NOT Handing It Over To The Taxman

Most people trying to make a crust online (or offline... Read More

The Tax Man Cometh... To Search

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

Failure To Pay Employment Taxes ? Penalties

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

Tax Audits: What Signs Make You More Likely to be Audited by the IRS?

It's a major fear for most Americans: A notice from... Read More

IRS Offer-in-Compromise, Hype or Hope?

"Settle for Pennies on the Dollar! IRS debts settled for... Read More

Small Businesses: Company Car Vs. Personal Mileage Reimbursement In Hurricane Katrinas Wake

With gas prices at an all time high before Hurricane... Read More

Tax Reduction Tips

In the rush to get tax returns prepared and filed... Read More

IRS Obtains More Than 100 Injunctions Against Tax Scheme Promoters

The IRS has obtained civil injunctions against more than 100... Read More

Tax Tips - Which Tax Form Is Right For Me?

IRS Tax forms can be confusing.Am I a 1099 or... Read More

Tax Secrets - How Drew Miles Helped Me

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

Render Unto Caesar

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

Requirements To Produce Tax Information (Whats Up With That?)

"What we've got here is a failure to communicate." ... Read More

IRS Statute of Limitations: Do Taxes Ever Expire?

Many Americans believe that an IRS debt is a debt... Read More

Small Businesses Filing Amended Federal Tax Returns to Recover Money

Small Businesses Filing Amended Federal Tax Returns to... Read More

Reducing Taxes Through Dividend-Salary Mix Calculations

Should I take wages or dividends from my privately owned... Read More

Tax Investigation - What You Need To Do

The knock on the door from a Tax Inspector is... Read More

Deducting Points On Home Refinances

Deduction of Refinance PointsAny points that you pay in the... Read More

IRS Certifies 2006 Toyota Hybrid for Clean Fuel Deduction

The Internal Revenue Service has certified the 2006 Toyota Highlander... Read More

Income Tax Returns Your Accountant Should Not File

You've been feeling uneasy (perhaps even guilty) because you've failed... Read More

Tax Reform, My Way

We need real tax reform and we need it now.... Read More

How To Get An Instant Pay Raise

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

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Arrangement (IRA) or... Read More

Corporations Failing To Claim AMT Exemption Overpay Taxes By $11,000

Does your incorporated business pay alternative minimum tax ["AMT]? If... 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

Small Business Tax Deductions for Year End 2004

As a small business owner, it's wise to familiarize yourself... Read More

What to Do If You Can?t Pay Your Taxes

The end of tax filing extensions is quickly approaching. What... Read More

Seven Key Tax Deductions for the Self Employed

As a sole proprietor, it's wise to familiarize yourself with... Read More

How to Cut Duty Cost and Increase Profit as an Importer

Import duties continue to be significant elements in the cost... Read More

Understanding Basic Tax Terms

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

Some Folks Pay A Lot Less Tax Than Others On Very Same Income?Did You Pay Too Much Tax In 2004?

Someone once remarked, "Next to being shot at and missed,... Read More

Fiscal Deity: Tax Consultant

Strategic planning throughout the year results in a minimal tax... Read More

How To Claim CHILD TAX CREDIT The Right Way And Add An Extra $2,000 To Your Refund

The U.S. Department of Agriculture estimates that it costs nearly... Read More

Marriage or Divorce ? Check Your Social Security Number

Newlyweds and the recently divorced should make sure that names... Read More

Deducting Points On Home Refinances

Deduction of Refinance PointsAny points that you pay in the... Read More

Organizing Your Taxes

Does this scene sound familiar? It's April 7. You haven't... Read More

E-commerce Taxation

The means and types of businesses have transformed with advent... Read More

Business Tax Deductions

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

Gambling Income and Expenses - Tax Requirements

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

Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!)

We all love to criticize the IRS, don't we? And... Read More

Save Money on Taxes - Double Your Income Now With Tax Saving Tips on Deductions

Adding Your First Additional Stream of IncomeMost new wealth builders... Read More

I Havent Filed a Tax Return with IRS in Years, What Do I Do?

In elementary school, kids come up with creative excuses why... Read More

History Of The Federal Income Tax

The powers of Congress, and the limitations set upon those... Read More

Access to E-records by Taxing Authorities: A Case for Pakistan (Part I)

Background issues of access to recordsTo assess the records at... 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

What is a Federal Tax Lien?

A Federal Tax Lien (FTL) is a legal instrument that... Read More

Taxation of Forgiven Debt: The 1099C & You

Often people fall on hard times and stop paying on... Read More

How Likely Are You To Be Audited?

Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More

Tax Secrets - How Drew Miles Helped Me

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

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More