ItsDeductible donation value estimates seem suspiciously high - are they IRS approved?

You're right to be cautious about those values. ItsDeductible is using fair market value estimates based on national averages, but those can definitely run higher than what you might see at your local thrift store. The important thing to understand is that the IRS holds YOU responsible for the values you claim on your tax return, not the software. ItsDeductible is just a tool - you're free to adjust those values down if they seem unreasonable for your area or for the specific quality of items you're donating. When valuing donations, the IRS expects you to use "fair market value" which means what a willing buyer would pay a willing seller when neither is under pressure. Quality and condition matter a lot - a barely worn designer shirt is worth more than a well-used generic one. I'd recommend taking photos of your donations, getting detailed receipts, and adjusting the ItsDeductible values when they seem excessive. For large donations (over $5,000 total), you'll need a qualified appraisal anyway.

I went through something similar when cleaning out my parent's estate. I started using ItsDeductible but was seriously questioning some of the values. I found this service called https://taxr.ai that really helped me sort through all the donation documentation. It analyzed my donation receipts and compared the values I was claiming against IRS accepted ranges. What I liked is that it flagged items where ItsDeductible seemed to be overvaluing stuff and suggested more realistic values that would still be defensible to the IRS. It also helped organize everything by donation date and charity, which made tax filing way easier.

After reading about it here, I decided to try taxr.ai for my donation situation. I was using ItsDeductible for a big estate cleanout (over $15,000 in donations) and was worried about the values too. The difference was pretty eye-opening. Their analysis showed that about 30% of my items were overvalued by ItsDeductible, while others were actually undervalued! They provided specific reference points for different item conditions that made way more sense than the default values. What really helped was their documentation system. Now I have proper substantiation for everything rather than just relying on the ItsDeductible estimates. I sleep much better knowing my deductions are defensible if questioned.

Has anyone here tried calling the IRS directly to ask about donation values? I've been trying for WEEKS but can never get through to a human. Always stuck on hold for hours then disconnected. Trying to figure out if I should trust these apps or if there's some official IRS guidance. After wasting days trying to reach someone, I found https://claimyr.com which got me through to an IRS agent in less than 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that they do scrutinize charitable donations, especially when they see large increases from year to year. She said using third-party valuation tools like ItsDeductible isn't prohibited, but the taxpayer is still responsible for ensuring values are reasonable.

I hate to admit when I'm wrong, but I have to eat my words about Claimyr. After posting that skeptical comment, I was still desperate to talk to someone at the IRS about my donation values, so I gave it a shot. It actually worked! Got connected to an IRS representative in about 12 minutes. They confirmed that while ItsDeductible values aren't automatically "safe harbor" amounts, they're generally acceptable if they reasonably reflect the condition of your items. The key is good documentation - detailed descriptions, photos if possible, and receipts from the charity. The agent also said they typically only question donation values if they seem wildly inflated or if there's a huge spike in one year without explanation. Since I explained mine was from cleaning out a relative's home, they said that would be a reasonable explanation for a temporary increase.

Just wanted to add something as someone who volunteers at a thrift store - the values in ItsDeductible often reflect what NEW or NEARLY NEW items would sell for at a thrift store. If your items are worn, stained, outdated, etc., you should definitely adjust down. Also FYI - goodwill and salvation army pricing varies HUGELY by location. In wealthy areas, they often price things much higher than in lower-income neighborhoods. So if you're comparing to your local store prices, that might not reflect national averages.

I'm surprised nobody's mentioned this, but you can actually just PRINT OUT the ItsDeductible donation values and keep them with your tax records! that report shows exactly what methodology they used to determine values. I've been doing this for years after an accountant friend suggested it.

Great thread - this is exactly the kind of discussion that helps taxpayers navigate these tricky situations! As someone who's dealt with large donation deductions myself, I'd add that the IRS Publication 561 "Determining the Value of Donated Property" is really helpful reading. It gives specific guidance on valuation methods and what documentation they expect. One thing I learned the hard way is that bundling similar items can actually help with both organization and defensibility. Instead of itemizing every single shirt at $21 each, you might group them as "10 women's shirts, good condition, average value $15 each" - this shows you're being reasonable rather than just accepting default values. Also worth noting that some CPAs will actually review your donation valuations as part of tax prep if you ask. Mine caught several items where I was being too conservative with values, and others where ItsDeductible was definitely overreaching. It's usually worth the small extra fee for the peace of mind, especially when you're dealing with $27k+ in donations like the OP.

This is such a timely discussion for me! I'm dealing with a similar situation after inheriting my aunt's estate. She was a teacher for 40 years and kept EVERYTHING - books, clothes, household items, you name it. I've been using ItsDeductible too and had the same concerns about inflated values. What I ended up doing was taking a hybrid approach: I use ItsDeductible as a starting point, but then I cross-reference with actual thrift store prices in my area and adjust accordingly. For example, if ItsDeductible says a paperback book is worth $3 but my local Goodwill sells them for $1, I go with $1.50 as a compromise. The key thing I learned from my CPA is that "fair market value" doesn't mean retail price - it means what someone would actually pay for a used item in that condition. So while a new shirt might retail for $50, the same shirt donated in "good" condition might only be worth $8-12, not the $21 that ItsDeductible suggests. I've also started taking photos of each donation load and keeping a simple spreadsheet with dates, quantities, and my adjusted values. It's a bit more work upfront, but it gives me confidence that I can defend my deductions if needed.

This has been such a helpful discussion! I'm dealing with a similar situation - my father passed away last year and left behind a house full of collectibles, books, and vintage items. I've been paralyzed by the whole donation valuation process because I was afraid of either claiming too much or leaving money on the table. Reading through everyone's experiences, I think the key takeaway is that there's no "magic bullet" - you need to use good judgment, document everything well, and be prepared to defend your values with reasonable evidence. The hybrid approach that Louisa mentioned makes a lot of sense - use ItsDeductible as a starting point but adjust based on local market conditions and actual item quality. One question I haven't seen addressed: for items that might have collectible value (like vintage books or antiques), should I get them appraised before donating, or is it okay to use the standard donation value guides? Some of these items might be worth more than typical thrift store pricing, but I'm not sure how to handle that without spending a fortune on appraisals. Also want to echo what others said about documentation - I've started taking photos and keeping detailed records, and it definitely helps with peace of mind. Better to spend a little extra time now than worry about an audit later!

This whole discussion really highlights how complex donation valuation can be! I've been dealing with a similar situation after my mother downsized to assisted living - we've donated probably $12,000 worth of items over the past 18 months. One thing that's helped me sleep better at night is keeping a "valuation journal" where I note my reasoning for each major donation batch. For example, "Adjusted ItsDeductible values down 25% for women's clothing because items showed normal wear and local thrift prices are lower than national averages" or "Used book values adjusted to $2 each based on Half Price Books pricing in my area." The other thing I learned from my tax preparer is that the IRS is generally more concerned about people who suddenly claim huge donation spikes without explanation, or who claim values that are obviously inflated (like $100 for a used t-shirt). If your values are in a reasonable range and you can explain your methodology, you're probably fine. I also want to second what others said about getting professional help when dealing with large amounts. My CPA charges $75 to review donation documentation, and it's been worth every penny for the peace of mind. She's caught both overvaluations and undervaluations in my records, and helped me understand what level of documentation the IRS actually expects.