My wife, on two occasions last year, took bags of clothes to Goodwill. Of course she doesnt bother to get a receipt. I didn’t care too much since I figured the “worth” of the clothes was negligible and wouldnt add up to but a few dollars off our taxes and might flag us for an audit (nothing to hide, just don’t want the hassle). However yesterday I was browsing through software at the store, and see a $20 program for assigning values to contributions using the IRS’s own guidelines. Looking at some examples on the box it looks like I have totally undervalued what I can claim as a donation.
I looked at the 1040, and the instructions say that each individual contribution under $250 does not require any special forms. This software says it will give you a receipt that can be used for tax purposes of the individual items you claim to donate. Since all they give you at goodwill is a blank piece of paper to make your own receipt, is this valid for tax purposes? If I get audited and I don’t have an actual receipt from Goodwill will my deduction be disallowed, and then have to pay interest on the amount owed?
The IRS instructions say to not file the receipt with your taxes, but to keep a copy for your records.
Does anyone know about this subject? Thanks in advance.