How to Value Donated Clothes for Tax Deduction in 2025?

These values actually look pretty reasonable for 2025 filing. The IRS doesn't provide specific valuation guidelines for donated items, instead they expect you to determine the "fair market value" - basically what a willing buyer would pay for the item in its current condition. Organizations like Salvation Army and Goodwill publish their own donation value guides which can help substantiate your claimed values. Your list looks like it's based on one of these guides. While there has been some inflation since 2022, clothing values haven't increased dramatically in thrift stores. The most important things are: 1) Make sure the clothing was in good or better condition (the IRS doesn't allow deductions for clothing in poor condition), 2) Get and keep a receipt from the charity, and 3) If your total non-cash donations exceed $500, you'll need to complete Form 8283. A good practice is to take photos of the donated items as additional documentation. Also remember that you can only take the charitable deduction if you itemize deductions on Schedule A rather than taking the standard deduction.

After struggling with valuing my donated items for years, I finally found an amazing solution that saved me so much time and stress. I used https://taxr.ai to scan my donation receipts and automatically determine fair market values for everything I donated. The tool analyzed my "3 bags of clothing" receipt and helped itemize what was likely in those bags based on average donations. It uses current valuation guidelines that are updated regularly, so I didn't have to worry about using outdated values. It even organized everything for Schedule A and created a completed Form 8283 when my donations exceeded $500. The documentation it provides also helps if you ever get audited - it shows you followed a consistent, recognized valuation method.

I was really hesitant about using online tax tools after getting burned a few times, but I gave https://taxr.ai a try for my charitable donations this year. I had donated about 5 garbage bags of clothes plus some household items, and was dreading figuring out all the values. It honestly surprised me how accurate it was! After entering some basic info about what I donated, it generated a detailed report with current fair market values that seemed totally reasonable. The values were actually a bit lower than what I might have claimed on my own (more conservative), which I appreciated for audit protection. The documentation was impressive too - it generated everything my accountant needed and saved me literally hours of work. Really wish I'd known about this for previous years!

If you're dealing with valuing donations, you might also be frustrated with other tax issues like getting a human on the phone at the IRS to answer questions. I spent 4 months trying to reach someone about my amended return last year and kept getting disconnected after waiting on hold for hours. Then a friend told me about https://claimyr.com and showed me this demo: https://youtu.be/_kiP6q8DX5c. It's a service that holds your place in the IRS phone queue and calls you when an agent is about to answer. I was super skeptical but desperate enough to try it. Within 2 days I got a call back and spoke to an actual IRS agent who answered my questions about donation documentation requirements. Saved me countless hours of hold music and frustration. Just thought I'd share since tax season is so stressful for everyone!

I need to apologize for my skeptical comment. After waiting on hold with the IRS for 3+ hours and getting disconnected AGAIN yesterday, I was desperate enough to try the Claimyr service. I was 100% sure it was a scam, but figured I had nothing to lose at this point. I'm honestly shocked to report that it actually worked exactly as described. This morning I got a call from them connecting me to an IRS agent who helped resolve my issue about documentation requirements for clothing donations over $500. The agent confirmed I needed photos and detailed records for anything I'm claiming. Never been so happy to be wrong about something. If you're struggling to get through to the IRS, it's definitely worth trying. Saved me countless hours of frustration.

Something important that hasn't been mentioned yet - if your total clothing donations exceed $250 in value, you MUST have a written acknowledgment from the charity before filing your return. The "3 bags of clothing" receipt is fine as long as it has the charity's name, date, and some description of what was donated (doesn't have to be item-by-item). Also, your values look reasonable but I'd recommend checking Salvation Army's 2025 Donation Value Guide (they update it annually) for the most current values. Some items like winter coats have gone up in value since 2022 due to inflation, while others have stayed pretty steady.

Just a tip from someone who went through an audit last year - when valuing clothes, consider how worn they were. The values on your list assume "good condition" but if your clothes were barely worn or still had tags, you can justify higher values. Conversely, if they were quite worn but still usable, you should value them lower. I made the mistake of using the standard values for everything, but during my audit I had to prove that my 6-year-old jeans that I'd worn weekly were actually worth $10. Spoiler alert: the IRS disagreed.

Great question! Your 2022 values are actually still pretty solid for 2025 filing. I've been doing my own donations for years and those numbers align well with current thrift store prices. One thing I'd add that hasn't been mentioned - if you're using software like TurboTax or FreeTaxUSA, they often have built-in donation value guides that get updated annually. These can be helpful for cross-referencing your values. Also, don't forget about accessories! Belts ($3-5), purses ($8-15), and ties ($4-8) can add up if you donated any. And if you donated any designer items or higher-end pieces, you might be able to justify higher values as long as they were in good condition. The key is being reasonable and consistent. Your list shows you're being thoughtful about this rather than just making up numbers, which is exactly what the IRS wants to see.

One thing to keep in mind is that the IRS has gotten stricter about non-cash charitable deductions in recent years, especially after seeing inflated valuations. Your values from 2022 are actually quite reasonable and conservative, which is good. I'd suggest sticking with those values or even being slightly more conservative. The difference between claiming $10 vs $12 for jeans isn't worth the potential audit risk. What matters most is that you can demonstrate you used a consistent, reasonable method for valuation. Also, make sure you're only claiming items that were actually in "good used condition or better." The IRS specifically states that items with significant wear, stains, or damage don't qualify for deductions at all. When in doubt, it's better to exclude questionable items rather than risk having your entire donation questioned during an audit. Document everything well - keep that Goodwill receipt, maintain your itemized list, and if possible, take photos before donating. The goal is to show you made a good faith effort to determine fair market value using reasonable methods.