Donating your old car, truck, boat, or RV to Cars for Kids is not only a great way to support education for at-risk students, but it may also provide valuable tax benefits. If you donated a vehicle in 2024, you may be eligible for a charitable tax deduction when filing your federal taxes.

However, understanding how to claim your deduction can feel overwhelming, so we’ve created this simple guide to help you navigate the process.

Step 1: Confirm Your Eligibility

To claim a tax deduction for your vehicle donation, the donation must be made to a qualified 501(c)(3) nonprofit organization like Cars for Kids. You can verify an organization’s tax-exempt status using the IRS’s Tax-Exempt Organization Search.

Step 2: Determine the Deduction Amount

The IRS determines your deduction based on how the charity uses your donated vehicle:

1. If the vehicle is sold – Your deduction is the gross proceeds from the sale, meaning the amount the charity receives when auctioning or selling the vehicle. You’ll receive a Form 1098-C from Cars for Kids stating the final sale price.
2. If the vehicle is used by the charity – If we use the car for our programs rather than selling it, you may be able to deduct the fair market value of the vehicle.
3. If the vehicle is valued under $500 – You can deduct the fair market value or $500, whichever is lower, without needing additional documentation.

Step 3: Gather Your Paperwork

To claim the deduction, you’ll need:

• A receipt from Cars for Kids confirming your donation
• A Form 1098-C (if the vehicle was sold)
• IRS Form 8283 for deductions over $500
• Proper documentation of your vehicle’s fair market value (if applicable)

For more details, visit the IRS website.

Step 4: File Your Taxes

When filing your 2024 tax return, include your charitable deduction on Schedule A (Itemized Deductions) of your Form 1040. If your deduction is greater than $500, Form 8283 must also be completed and attached to your tax return.

Reminder: You must itemize your deductions to claim your vehicle donation. If you take the standard deduction, you cannot claim the donation separately.

Step 5: Consult a Tax Professional

Every tax situation is different, and while donating a vehicle can be a great tax benefit, it’s always best to consult a certified tax professional to ensure you’re maximizing your deduction properly.

Why Donate to Cars for Kids?

By donating your vehicle to Cars for Kids, you’re helping students earn their high school diplomas and build a brighter future. Plus, we make the donation process easy by offering:

• Free towing – We’ll pick up your vehicle at no cost to you
• $50 gift card – As a thank-you for your donation
• Hassle-free paperwork – We handle all the details
• Maximum tax deduction – We ensure you get the best possible deduction

Disclaimer: This blog post is for informational purposes only and should not be considered tax advice. Please consult a licensed tax professional or visit the IRS website for official tax guidelines.