Goodwill Car Donation » tax savings http://www.goodwillcardonation.net The Best Goodwill Car Donation Resource Tue, 07 Sep 2010 01:16:21 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 How To Calculate Deduction For Car Donation http://www.goodwillcardonation.net/507/how-to-calculate-deduction-for-car-donation/ http://www.goodwillcardonation.net/507/how-to-calculate-deduction-for-car-donation/#comments Fri, 11 Sep 2009 20:22:03 +0000 admin http://www.goodwillcardonation.net/?p=507 The amount of tax savings you will get from donating your car to charity depends on your tax bracket and the value of your donation, i.e. your car. Here is a handy calculator that lets you figure out how much tax savings you can expect to get by donating your car to goodwill.

Tax Savings = Value of Donated Car x Your Tax rate

So if your car is worth $1000 and your tax rate is 30%, you will save $300 on your taxes.

Keep in mind that you must itemize your deductions in order to gain a tax benefit. Make sure that when itemized, your total deductions are greater than your standard deduction. If they're not, stick with the standard deduction. For 2008, the basic standard deductions are:

  • Head of household - $8,000
  • Married taxpayers filing jointly and qualifying widow(er)s - $10,900
  • Married taxpayers filing separately - $5,450
  • Single - $5,450

*Your standard deduction may be increased if you are age 65 or older or blind.

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