Skip to main content
March 6, 2025
Question

Other than being a nice guy, what is the benefit to donate a car to charity?

  • March 6, 2025
  • 1 reply
  • 0 views

I donated a 2010 Nissan Altima to Charity. My form 1098-C states that the gross proceeds was $1,300.00.

 

I plugged all the info into TurbiTaX, and it did not increase my Federal Return at all.

 

What is the point of donating the car? I could have some it outright for 3 times that amount.

    1 reply

    March 6, 2025

    Charity donations are an itemized deduction that goes on Schedule A.   If you do not have enough other itemized deductions to exceed your standard deduction, then a charity donation has no effect on your refund or tax due.   Other itemized deductions for Schedule A include such things as mortgage interest, property taxes, sales tax, medical expenses, gambling losses....

     

     

    Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the tax laws that have been in effect since 2018, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

     

    The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.

     

     

    2024 STANDARD DEDUCTION AMOUNTS

    SINGLE $14,600    (65 or older/legally blind + $1950)

    MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

    MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

    HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    rbaronAuthor
    March 9, 2025

    xmasbaby0

     

    According to my 1040 line 12, my deductions are $32,300.00. The program gave me the standard deduction because my itemized stuff was insufficient.

     

    Thanks for the reply. I appreciate it.