As fall approaches and huge sales and discounts are being offered at retail clothing stores, some parents may be going through their children''s closets to see what they need - and get an idea of how much they will be spending. But before discarding old clothes that they have outgrown, parents should consider donating them to charity and getting a tax deduction, according to CNBC.
Each year, many people clean out their children''s old clothes and throw them into the dumpster, but they are losing out on money they could be saving during tax filing
season. Instead, they should catalog the clothes they are planning on throwing away - including their fair market value - and take them to a qualified charity for donation.
Most qualified organizations will give the parent a receipt, which they should include in their tax documents.
"Documentation is key to how much you want to claim for donations. If you want a big number deduction, keep track of the items and their receipts - the more documentation you have, the higher a deduction you can claim," certified public accountant Tony Anchukaitis told Bankrate.
Taxpayers should keep all documentation is a safe location with their other income information.
Liberty Tax Service
provides computerized income tax preparation
and electronic filing. Each tax office
offers customers audit assistance, a money back guarantee, and free tax return checking.