Is there a car donation tax if I donate my car?

In the United States, you can claim a tax deduction for donating a car to a qualified charity. The amount of the deduction is the fair market value of the car at the time of the donation. You can find the fair market value of your car by using the Kelley Blue Book or Edmunds.com.

To claim the tax deduction, you must itemize your deductions on your tax return. You must also provide the charity with a Form 1098-C, which is a statement that the charity provides to you acknowledging the donation.

You can only claim a tax deduction for a car donation if the charity is a qualified organization. A qualified organization is one that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. You can find a list of qualified organizations on the IRS website.

There are some exceptions to the general rules for car donations. For example, you cannot claim a tax deduction for a car donation if you receive any benefit in return for the donation. Additionally, you cannot claim a tax deduction for a car donation if the car is worth more than $500 and you do not have a written appraisal of the car.

If you have any questions about car donations, you should contact the IRS.