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December 17, 2018

How to Correctly Fill Out a Car Donation Form

Handing over your old vehicle to a charity is one of the best decisions you can ever make. Think about it: You’ll finally get rid of a financial burden without having to shell out a dime, and you’ll be doing it for a truly worthy cause—one that can uplift and even save the lives of poor, needy, and sick people. To top it off, you’ll receive a substantial amount of tax deduction!

Before anything else, it’s crucial that you choose a nonprofit with the IRS’ stamp of approval. This means that you must look for one that has the 501(c)3 status, which signifies their eligibility for tax exemptions. To determine whether your chosen charity is IRS-accredited, check it out by using the IRS’ Tax Exempt Organization Search tool.

What Happens After You Donate

So you’ve finally donated your clunker to a worthy nonprofit organization. What’s next? Since you expect to receive a tax-deductible sales receipt from them after the auction sale of your donated vehicle, be sure to check your mailbox from time to time.

The receipt will show how much your donated vehicle was sold at auction. You will use the indicated amount as the basis of your tax deduction claim. If your car was sold for less than $500, you can claim either its final selling price or its fair market value not exceeding $500, whichever is higher. However, if your vehicle was sold for more than $500, you can only claim its exact selling price.

The charity will also mail you a copy of the IRS Tax Form 1098-C, which you’ll need to fill out before you file your itemized federal income tax return.

What is a 1098-C Form?

Donors whose vehicles were sold for an amount greater than $500 will receive Form 1098-C from the nonprofit they contributed to. Also known as Contributions of Motor Vehicles, Boats, and Airplanes, the form is an important document required by the IRS when you file your itemized federal income tax return. If you fail to attach an accomplished form along with your return, there’s a huge chance that your request for deduction will be denied.

The document takes note of your vehicle’s year, make, model, mileage during the date of its donation, and the vehicle identification number (VIN). Personal details such as your complete name, address, and Social Security number are also printed on the form.

Documents to Bring When Filing Your Tax Deduction

Once you have donated your automobile to a charitable institution, it’s important that you ask for a written acknowledgment of your contribution. It should include your name, the date you donated, your vehicle’s VIN, and a statement confirming that no goods or services were made in exchange for your donation.

A key point to remember is to always keep a copy of any acknowledgments and receipts for your records. Also, be sure that you itemize your tax deductions carefully.

To claim your deduction from the IRS, here are the requirements you need to present:

Tax deductions worth $500 or less:

  • A document stating the name of your charity, information of your donated vehicle, and information if any goods or services were obtained

Tax deductions of more than $500 but less than $5,000:

  • A document stating the name of your charity, information of your donated vehicle, and information if any goods or services were obtained
  • Form 8283 Section A attached to Form 1040
  • Form 1098-C Copy B or a legal substitute document
  • Form 8453 (for online filing)

Tax deductions worth more than $5,000:

For instructions on how you can fill out Form 8283, click here. You can also check out this page to get a guide on completing Form 1098-C.

If you have concerns regarding any of these requirements, consult your tax adviser or talk to an IRS expert at 1-800-829-1040.

Donate to Veteran Car Donations and Get Huge Tax Benefits

Trade your old and unwanted vehicle for a hefty tax write-off by handing it over to us at Veteran Car Donations! In doing so, you will be providing life-changing assistance to the impoverished, handicapped, unemployed, sickly, and homeless veterans in your area.

We will sell your donated vehicle through auction and use the proceeds to support our IRS-certified 501(c)3 nonprofit organization partners in providing our nation’s heroes with mortgage-free and specially adapted homes, free physical and mental health care services, educational scholarships, career development, employment opportunities, and many other benefits.

For more information on our car donation program, check out our FAQs page. For inquiries, you can call our toll-free 24/7 hotline 877-594-5822 or send us a message online.

You can donate to Veteran Car Donations by either filling out our online donation form or calling us directly. We accept vehicle donations wherever you are in the United States since we have car donation programs in all 50 states.

Transform Lives with Your Car Donation

Call us today at 877-594-5822 and transform the lives of our struggling veterans with your car donation!

Veteran Car Donations operates in all 50 states.

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Or call (877) 594-5822!