Decluttering and organizing is a chore – there’s no way around it. That said, not only does being organized help reduce stress, but it can even save you some money come tax season! Donating your gently used goods to nonprofit organizations can net you a write-off on your taxes. You can use MyShelf to track donation values, receipts, photos and help you keep your paper donation receipt!
Separate Your Donation
As you’ll do with the items you’re going to donate, make a separate pile! Using our Location feature, you can add a location to your inventory and call it “Donation.” You can also use Tags to tag the items as donation or donated. It’s important to separate them out so you can easily add each item towards your deduction.
Already have your items in MyShelf? Sort them into your Donation pile using the “Move” feature!
Add Details to Your Items
Every item in MyShelf has a variety of details that you can add. We recommend using these fields:
- Value: Input your “fair market value” for the item you’re donating. We found this source here from The Balance to help you out: https://www.thebalance.com/donation-value-guide-4172778
- Quantity: If you’re donating several of the same items (t-shirts, shoes) that are similar enough to not need separate entries, then choose your quantity!
- Notes: Put details on the items - list specifics like brands or even use it to remember why you’re donating this in the first place.
Photos along the way are incredibly useful, especially if they need to be used as proof of donation for your deduction. Photos of each individual item should be listed with the item. Add photos of the donation pile at home and at drop-off to your “Donation pile” location to keep those handy. Lastly, add your filled out paper donation receipt as an attachment.
Time to get your tax documents together, don’t forget your donation! Pull out that paper receipt and export your donation pile with photos. Depending on your tax filing software, it might request these additional documents. But it’s always good to know you have them.
And just like that, two rewards at once! A clean space and a little extra money off your taxes. MyShelf is here to keep both your decluttering and donating organized!
Disclaimer: MyShelf and its employees are not certified in tax law. This article should not be considered legal tax advice. Please consult a tax professional for detailed information on the deductions available to you