- To receive a tax deduction for clothing, you must donate your items to a qualified charity organization. Ask the charity whether the Internal Revenue Service has qualified it as a tax-exempt organization, also referred to a 501(c)(3) organization. Otherwise, check IRS Publication 78, Cumulative List of Organizations, for a list of most tax-exempt organizations.
- Before making your donation, itemize each item of clothing, including business and professional attire, winter coats, rain gear, sportswear, shoes, dresses, skirts, slacks, sweaters, socks and underwear. Each item must be in good condition. Determine the fair market value of each item. The IRS does not publish a formula or chart that computes the fair market value of donated items. However, in general, fair market value equals the price that could be obtained for an item.
Bring your items to the charity and request a charity receipt, which must identify the number of items, date of delivery and condition of each item. Notify the charity organization of the fair market value of your items. - The Internal Revenue Service offers the standard deduction method for paying your taxes, which caps your deductions at a set amount. The itemized method requires a manual calculation of all deductions. You can choose either method, if you meet certain criteria. However, unless the sum of all your itemized deductions exceeds the standard deduction given to all taxpayers, it makes the most sense to choose the standard method.
- If you donate more than $500 worth of clothing to charities, prepare Section A of Form 8283 Non Cash Charitable Contributions, and include it with your federal tax return. If you hired an appraiser, have him prepare Part III, Declaration of Appraiser, of Section B. This must also be included with your tax return. The IRS will contact you if you are required to hand over copies of your receipts for verification.