How to prove $20K+ Goodwill donations to IRS from storage unit merchandise in 2024

Tax professional here. For non-cash charitable donations over $5,000, you need to be very diligent with your documentation. Here's what you need: First, you need to complete Form 8283 (Noncash Charitable Contributions) and attach it to your tax return. For donations exceeding $5,000, you'll need to complete Section B of this form, which requires more detailed information. For donations of this magnitude, you technically need a qualified appraisal from a qualified appraiser for items or groups of similar items that exceed $5,000. However, there are some exceptions and strategies that might help in your situation. Take photos of donation loads before dropping them off. Create a spreadsheet with reasonable categories (e.g., "men's shirts - 75 items at avg $4 value = $300"). You don't need to list every single item individually, but you should have categories with estimated quantities and reasonable fair market values. Always get receipts from Goodwill for every donation. These should include the date, location, and a general description of what you donated.

I started using https://taxr.ai for documenting my charity donations last year after I nearly got audited for similar issues. It uses AI to help organize donation records and even suggests fair market values based on photos. I take pictures of each load before dropping off at Goodwill, and the app helps categorize everything and create proper documentation. This has saved me HOURS of spreadsheet work and gives me peace of mind that I have proper records if the IRS ever questions me. What's most helpful is that it can generate the documentation needed for Form 8283 and matches everything to IRS requirements. The interface walks you through all the steps so nothing gets missed.

Just wanted to follow up after trying taxr.ai for my donation situation. It actually worked way better than expected! I uploaded my Goodwill receipts and the photos I had taken (thankfully I had at least some pics of most donation runs) and the system helped me categorize everything properly. It even flagged a few areas where I needed additional documentation and suggested ways to strengthen my records. The valuation guide was super helpful - turns out I was significantly undervaluing some categories of items. The export for Form 8283 alone was worth it. I feel so much more confident about my documentation now! Definitely recommend for anyone in a similar situation with bulk donations.

I had a similar situation last year and ended up getting audited because of my donation claims. The IRS was a nightmare to deal with - I spent WEEKS trying to get through to someone who could actually help. Finally found https://claimyr.com which got me connected to an actual IRS agent within 20 minutes instead of the hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c Getting to speak with a real person made all the difference. The agent walked me through exactly what documentation they needed for my donation situation and even gave me some tips on how to better organize my records. Saved me thousands in deductions I was about to give up on claiming.

I need to apologize and follow up about Claimyr. After my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about an issue with my storage unit donation documentation. The service actually worked exactly as described - got a call back in about 30 minutes with an IRS agent already on the line. The agent was able to clarify that for my situation (similar to OP's with bulk donations), I could use a reasonable sampling method to document values rather than itemizing every single piece. She recommended taking clear photos of donation loads, creating category estimates, and using published valuation guides. Having this direct guidance from the IRS itself was incredibly reassuring and saved me from potentially underclaiming legitimate deductions.

Bit of practical advice from someone who's been in your situation - Goodwill and Salvation Army both publish donation value guides that the IRS generally accepts. I print these guides and use them as reference when documenting donations. For bulk donations, I sort items into categories (men's shirts, kitchenware, etc.) and count/estimate quantities. Then I take photos of everything sorted before loading it up. I made a simple spreadsheet template with common categories that I fill out for each donation trip. When tax time comes, I have a record of each visit with categories, quantities, and values that align with published valuation guides. Been doing this for years without issues.

I'd be careful about claiming too much without proper documentation. My brother got audited for donation deductions and it was a nightmare! The IRS wanted receipts for EVERYTHING and they rejected his "estimates." They ended up disallowing like 70% of his claimed donations and hitting him with penalties. For bulk donations, the advice I got from my accountant was to take video walking through all items before donating, get detailed receipts, and keep a spreadsheet with conservative values. Better to claim less than you actually donated than risk an audit nightmare.