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.