Vehicle Donation: Donate My Car For Tax Credit

Vehicle Donation: Donate My Car For Tax Credit

Since launching the national vehicle donation program, Cars for Homes, in 2005, Habitat has accepted over 120,000 vehicles for reselling or recycling, raising funds for Habitat to partner with local families to build stability and security that a safe affordable home allows.  We make it fast and easy to donate a vehicle and you may qualify for a tax deduction. Your vehicle donations raised over $30 million in just the last five years!

How To Get Your Tax Deduction For A Car Donation:

1. Set up a car donation with an IRS registered 501(c)(3) charity of your choice. With Wheels For Wishes all you need to do is fill out an online donation form or call us at 1-888-737-5808 and we’ll do the rest for you!
2. Depending on the State, a title may be needed to complete the donation process. Click here to find out more about your State’s title laws.
3. When your donation process is complete, request a receipt from the charity program. With Wheels For Wishes your receipt is automatically sent to you.
4. When you receive your car donation receipt hold onto it for next year’s taxes.
5. When you are filing your taxes in 2023 for last year’s car donation all you have to do is fill out a 1098-c form and attach it to your federal tax return.

Four Simple Categories For A Car Donation:

A tax write off for a car donation is a way that you can get money back from your taxes for the non-cash charitable donation of a motor vehicle.

1. In most cases, donated vehicles that sell for less than $500 are able to be claimed at the fair market value up to $500 without filling out any extra paperwork.
2. If your donated car sells for more than $500, you will be able to claim the exact amount for which your vehicle sold with a 1098-c form or a 8283 form. The 1098-c form is specifically for motor vehicles, the 8283 form is for general property. Both can be used to file for a car donation.
3. If you are looking for a car donation tax credit of over $500 but less than $5,000 you’ll have to fill out a 1098-c form or a 8283 IRS Form for a non-cash charitable contribution. A tax deduction for a donated car is a simple step within the document in section A of the 8283.
4. A car donation tax credit for over $5,000 will need a 1098-c form or a 8283 form with a written appraisal. You can find this simple step within section B of the 8283 IRS Form for non-cash charitable contributions.

How Much Does Donating A Car Save On Taxes Specifically?

Our area of expertise is tax deductions for car contributions. Following the receipt of your vehicle donation by Wheels For Wishes, we will mail you a receipt detailing the proceeds from the sale of your vehicle. (usually at the fair market value of the car). You will be given that sum as a tax deduction for your vehicle donation. We’ll make sure you have all the information you need to claim your tax deduction for donating a car to a good cause.

In 2023, are car donations tax deductible? Yes, they do! All donated vehicles from 2023 can be written off against taxes for the following year. The gift you are giving to a child who is suffering from a serious illness is the main benefit; your tax deduction for car contributions is merely an extra bonus!