Article by Richard A. Manfredi

f you donated a used car to a qualified charity, make sure that you learn the proper way to receive a charitable contribution for the donation.Every year thousands of Americans donate unwanted cars to charity. Donating a car to charity not only helps people in need, but also qualifies as a tax deductable gift. Unfortunately, far too many people misplace the vehicle donation receipt or forget to deduct the contribution. Here are a few tips from the IRS so that you can receive the benefits and reduce your taxes.The process of deducting your automobile donation depends on the amount of your claim. For example, depending on the amount of your claim, you may need special forms or records in order to qualify for a deduction. The IRS states that if you claim a deduction of at least $ 250 but not more than $ 500, you will need a written receipt from the charity. The receipt should have been given to you at the time of donation and includes the following information: the name of the non-profit organization; a description of the donated car and a statement confirming whether the charity or car donation program gave any goods or services in return for the donated vehicle. This statement should be kept for your records. Do not attach it to your tax return.When it comes to car donations over $ 500, donors need to provide the IRS with a copy B of Form 1098-C, section A of Form 8283. Along with the form, donors will need to attach a written statement from the charity with your name and taxpayer identification number. It also needs to include the vehicle identification number, the date of the donation, and a statement of whether the charity provided any goods or services in return for the car. If you did receive goods or services in return for the car donation in Massachusetts or California, for example, you will need to write a description and estimate of the fair market value of the goods or services, according to the IRS.Finally, deductions of more than $ 5,000 are required to include the same requirements listed above, for deductions of more than $ 500 as well as Section B of Form 8283. Donors will also need to include a written statement by a qualified appraiser.

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