Americans Overpay Taxes Due to "Garage Sale" Donation Value
San Luis Obispo, CA (PRWEB) November 2, 2008 -- Millions of taxpayers may end up paying the government more taxes than necessary. The Internal Revenue Service reports that about 37.5 million taxpayers report charitable donations and only one-third of all filers itemize their deductions to receive the tax benefit. Of $140.7 billion of charitable contributions made each year, $42 billion are from non-cash item donations such as clothing, furniture, electronics, etc. The IRS allows taxpayers to determine the fair market value of the item on their own as long as appropriate records that substantiate these values are maintained. Taxpayers are left on their own and often in the dark when it comes to determining what something is worth. They either give up, take the standard deduction or guess with low-ball garage sale values and hope they don't get audited. In reality, a bag of clothes with itemized fair market values is worth much more than it could be sold for on a driveway. Therefore, using researched fair market values and itemizing can boost your deduction and save you from overpaying taxes.
Fortunately, websites such as CharityDeductions.com are available to help taxpayers get more from their donations by providing fair market values for 100,000+ items. Users can track cash and non-cash donation activity throughout the year and generate an itemized report for documentation. The database categories and values are updated frequently and a new search feature has been implemented to quickly find the right item match for faster donation entry. The TaxPro Partners Program is available for tax professionals to offer this value-added service to their clients with discounted memberships. CharityDeductions.com is a stand-alone service that does not require the purchase of additional tax software.
"Taxpayers need to know that their item donations are worth more than they think," said David Anderson, co-founder of CharityDeductions.com. "In today's economy, taxpayers need to stop guessing what it's worth and start claiming fair market values to save money."
Woman's shoes, a commonly donated item, is normally valued at $2 - $4 at a garage sale has a fair market value of up to $25.00 depending upon its condition and brand, according to CharityDeduction.com's database. A one-year membership costs $24.95 and multiple-year memberships are offered at a discount. CharityDeductions.com offers a 30-day unconditional money-back guarantee to encourage taxpayers to join without risk.
CharityDeductions.com began in 2003 as the first web-based valuation software for charitable donations. The internet-based approach gives access to anybody with a computer, regardless of the type of operating system they used. The company's corporate goals are to make the website easy to use for all taxpayers, to save taxpayers money, and to continuously improve the website for a fulfilling user experience.