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Scarlett Forster

Thrift Store gave me a blank donation receipt - what's stopping me from inflating values?

I donated a bunch of stuff to my local thrift store last year - some clothes, kitchen items, and even a dresser. Just pulled up in my truck, unloaded everything, and they handed me a completely blank receipt for the donation. There wasn't any kind of assessment process at all. The receipt basically lets me write in whatever items I want and assign any value to them. I'm not planning to do anything dishonest, but I'm really curious - what would actually prevent someone from claiming they donated $5000 worth of stuff when it was just a few shirts and kitchen items? The thrift store didn't inventory anything I brought in, and they have no way to verify what I actually donated. Can anyone explain how this works with tax deductions? Is there any verification process? And I guess I'm wondering if I should be claiming more value than I initially thought to maximize my deduction? Just trying to understand the system here.

Arnav Bengali

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This is actually pretty common with many charitable organizations. The IRS expects you to assign a "fair market value" to your donated items, which basically means what they would sell for in their current condition. While it might seem like there's nothing stopping someone from inflating values, the IRS does have some safeguards. For donations valued over $250, you need a receipt from the organization. For donations over $500, you need to fill out Form 8283. And for donations over $5,000, you typically need a qualified appraisal. Even with smaller donations, you're expected to keep good records of what you donated and how you determined the values. If you get audited, the IRS can question your valuations and potentially deny deductions that seem unreasonable. Inflating values is technically tax fraud, so I wouldn't recommend it. There are legitimate guides online from organizations like Salvation Army and Goodwill that provide estimated values for common donated items - these can help you assign reasonable values.

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Sayid Hassan

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How exactly would they determine what's "reasonable" though? Like if I donate designer clothes vs regular clothes, the value difference is huge. Does that mean I need to take photos of everything I donate as proof?

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Arnav Bengali

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For higher-value items like designer clothing, documentation is definitely helpful. Photos, original purchase receipts, or even printouts of comparable items selling for similar prices can strengthen your case. For everyday items, the IRS generally accepts reasonable estimates based on condition. Most thrift stores actually have valuation guides available - you can ask for one or look online. They typically list ranges like "men's shirts $2-12" depending on condition. These guides are considered reasonable by the IRS.

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Rachel Tao

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After donating regularly to thrift stores and getting frustrated with valuation questions, I started using https://taxr.ai and it's been a game changer. I uploaded photos of my donations and it automatically calculated fair market values based on comparable items. It even generates a detailed itemized list that attaches to your tax return. The thing I like most is it actually keeps me honest - prevents overvaluing while making sure I don't undervalue either. Last year I donated furniture similar to yours plus some clothes, and the system generated values that were higher than I would've guessed for some items and lower for others. The best part is it creates documentation that would stand up in an audit because it uses actual market data for the valuations rather than just my guesses.

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Derek Olson

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That sounds interesting but kinda suspicious too. How does it actually determine values? Like what if I have a shirt from some limited edition collection or something unique?

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Danielle Mays

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I've heard about these donation valuation tools but always wondered if they're worth it. Does it actually save you money compared to just using the free Salvation Army valuation guide? And do you still need to keep receipts from the thrift store?

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Rachel Tao

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For unique items like limited edition clothing, you can add notes about the specific brand, collection, and condition. The system uses that additional context along with market data to suggest appropriate valuations. You can always adjust the final values if you have better information about what something is worth. Yes, you definitely still need to keep your donation receipts! The tool is for determining fair values, but you still need proof you actually made the donation. I scan my receipts into the system too so all my documentation is in one place. Compared to free guides, I've found it pays for itself by helping me identify items I would've undervalued, plus the time savings from not having to research everything manually.

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Danielle Mays

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I actually tried taxr.ai after seeing it mentioned here a few months ago and it's legitimately helpful. I donated a bunch of furniture when I moved and was totally guessing at values. The software suggested values based on condition and brand that were actually higher than what I would have claimed for some items. It also flagged a designer coffee table I was about to severely undervalue - turns out it was worth about $300 in the condition I donated it, when I was going to claim maybe $50. The documentation it created made me feel much more confident about my deduction amounts. Plus, having everything organized in one place made tax filing way less stressful.

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Roger Romero

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If you're claiming substantial donation values (like over $500 total for the year), I'd strongly suggest having thorough documentation in case you get questions from the IRS. I spent 3 WEEKS trying to reach someone at the IRS last year when they questioned my charitable deductions. It was a nightmare getting through. I finally tried https://claimyr.com which got me connected to an actual IRS agent in under an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue so you don't have to stay on hold forever. Once I finally spoke with someone, they just wanted to verify my documentation for some higher-value donations. Having detailed records of what I donated and how I determined values made the process smooth once I actually got through.

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Anna Kerber

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Wait, how does this even work? I thought the IRS phone system was just permanently broken. Is this some kind of special access thing?

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Niko Ramsey

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Sounds like a scam to me. Why would I pay someone to call the IRS when I can just do it myself for free? Sure the wait times suck but that's just how government services work.

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Roger Romero

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It's not special access - they just automate the waiting process. Basically, their system calls the IRS and navigates through all the prompts, then holds your place in line. When they reach a human agent, you get a call back so you can take over the conversation. It saves you from being stuck on hold for hours. I was skeptical too at first, but after wasting entire days trying to get through myself, the time savings was absolutely worth it. Consider the value of your time - if you bill at even $20/hour professionally, spending 5+ hours on hold costs you $100 in lost productivity. And there's no guarantee you'll even get through after waiting that long.

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Niko Ramsey

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OK I have to eat my words. After posting that skeptical comment, I got a notice from the IRS questioning some of my deductions from last year. Spent THREE DAYS trying to get through on their phone line with no luck - kept getting disconnected after 2+ hours on hold. Finally broke down and tried Claimyr, and no joke, I was talking to an actual IRS person within 45 minutes. Turned out there was just a minor documentation issue they needed clarified. Whole thing was resolved in one conversation instead of weeks of back and forth by mail. The service literally saved me from what would have been a massive headache. Definitely keeping this in my toolkit for any future IRS issues.

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Totally aside from all the service recommendations, I worked at a thrift store for years. The blank receipt thing is standard practice at smaller shops. We were told to tell people to: 1. Make a detailed list of everything you donate 2. Take photos of the items before donating 3. Use the Salvation Army donation value guide to assign reasonable values 4. Keep all this with your tax records Most donations are small enough that the IRS isn't going to care much, but if you're donating enough to make a significant difference on your taxes, you should document it properly. And definitely don't inflate values - it's really not worth the risk of an audit just to save a few bucks.

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Jabari-Jo

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Does anyone know if stores like Goodwill provide more detailed receipts? I'm planning to donate a lot of stuff next month and wondering if I should go there instead of my local thrift shop.

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Goodwill usually has a slightly more formalized process. They'll typically give you a receipt that confirms you made a donation on a specific date, but they still don't itemize or value the items for you. That part is still your responsibility. Some Goodwill locations do have printed donation value guides they can give you, which is helpful. But regardless of where you donate, the documentation burden is on you as the taxpayer. The most important thing is to make your detailed list BEFORE you donate, take some quick photos as evidence, and use a respectable valuation guide.

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Kristin Frank

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I'm actually a volunteer at a thrift store, and there's a practical reason we don't inventory donations or assign values. First, we're not qualified appraisers. Second, it would take forever and we don't have the staff. But more importantly, the IRS specifically puts the responsibility on the DONOR to determine fair market value, not the organization. We're actually not supposed to tell you what your stuff is worth for tax purposes. Just be honest about what you donated and use reasonable values. The Salvation Army and Goodwill both publish valuation guides online that are pretty detailed and accepted by the IRS. Most clothing items are worth $3-12 depending on condition, basic furniture $30-150, kitchen items $1-5 each, etc.

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Micah Trail

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Thanks for the insider perspective! Question though - do you guys keep any records of who donated what? Like if the IRS contacted your store, would you have any way to verify someone's donation?

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Jamal Harris

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Just wanted to add some perspective as someone who's been through an IRS audit related to charitable deductions. The auditor wasn't trying to catch me in some elaborate scheme - they just wanted to see that I had reasonable documentation for my claimed values. What saved me was having photos of the items I donated along with a simple spreadsheet listing each item, its condition, and the value I assigned based on the Salvation Army guide. The auditor spent maybe 10 minutes reviewing it and moved on. The key thing I learned is that the IRS isn't looking for perfection in your valuations - they're looking for evidence that you made a good faith effort to be reasonable. A $20 shirt valued at $25 isn't going to raise eyebrows, but a $20 shirt valued at $200 definitely will. For your dresser specifically, I'd suggest looking up similar pieces on Facebook Marketplace or Craigslist to get a sense of what used furniture in similar condition is actually selling for. That gives you a solid basis for your valuation if anyone ever asks.

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This is really reassuring to hear from someone who's actually been through the process! I think a lot of people (myself included) get paranoid about audits when really the IRS just wants to see you made a reasonable effort. Your point about using Facebook Marketplace or Craigslist for furniture valuations is smart - that's probably the most realistic way to figure out what used furniture is actually worth. Way better than just guessing or using some random online calculator. Did the auditor give you any other tips about documentation during your experience? I'm planning some big donations this year and want to make sure I'm doing everything right from the start.

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Anna Stewart

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As a tax professional, I want to emphasize that the system actually works pretty well despite seeming vulnerable to abuse. The IRS uses data analytics to flag returns with unusually high charitable deductions relative to income, and they have access to aggregate donation data from major organizations. What most people don't realize is that inflating donation values is considered tax fraud, which can result in penalties of 20-75% of the underpaid tax, plus interest and potential criminal charges. The risk-reward ratio just doesn't make sense for most people. For your situation, I'd recommend documenting everything now even though you already donated. Write down what you remember donating, research fair market values using the Salvation Army guide or similar resources, and keep that documentation with your tax records. For the dresser, check sold listings on eBay or Facebook Marketplace for similar items to establish a reasonable value. The key is being able to show you made a good faith effort to determine fair market value. Perfect accuracy isn't expected, but gross overvaluation will definitely get you in trouble if caught.

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Aisha Mahmood

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This is really helpful insight from a professional perspective! I had no idea the IRS uses data analytics to flag unusually high charitable deductions - that makes a lot of sense as a safeguard against abuse. Your point about the penalties being so severe (20-75% plus interest!) really drives home why honesty is the best policy here. I was mainly curious about how the system works, but now I see there are actually pretty strong deterrents in place. Quick question - when you mention checking "sold listings" on eBay vs just current listings, is there a big difference? I assume sold listings give you a more accurate picture of what people actually paid rather than what sellers are hoping to get?

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