• Overview
• Fast Facts
• FAQs

Do you donate bags of used clothing, toys and other household items to charity? You may be among the millions of Americans who overpay their taxes by hundreds of dollars simply because you do not know what your donated items are worth. ItsDeductibleTM, now available at Jackson Hewitt Tax Service® offices nationwide, will help you to determine and assign the actual fair market value to your donated items quickly and easily, enabling you to take advantage of the full, legal charitable contribution deduction. You could save hundreds of dollars on your taxes!

Determining the fair market value of non-cash contributions is not an easy task. The IRS suggests that you compare your items to similar ones at thrift stores to determine their value. However, this is a difficult and time-consuming process.

ItsDeductible is the solution! ItsDeductible does the work for you so you can assign accurate valuations to your donated items in minutes. These valuations were determined in strict accordance with IRS guidelines so you can be sure that your deduction will pass IRS scrutiny.

Ask your Jackson Hewitt tax preparer how you can save hundreds of dollars using ItsDeductible to assign accurate values to your donations.

• Non-cash donations are one of America’s most-overlooked tax deductions. It’s estimated that 20 million Americans overpay taxes every year by underestimating the value of their non-cash donations.
• According to the IRS, more than one-third of all taxpayers itemize deductions – and approximately 89% of that group claim charitable deductions.
• Most taxpayers underestimate the value of their non-cash donations by an estimated $1,600 per year; they’re missing out on a potential savings of up to $600 for each person.
• The IRS states in publication 526 and 561 that you have a legal right to deduct the “fair market value” of your donated items. However, the IRS does not provide a guide to determine this value.
• Most charitable organizations provide receipts for donations but these receipts do not include valuation data for your donated items.
• The IRS recommends that you keep the receipt from your charity in your personal files as proof of your donation. You do not need to include these receipts when you file your tax return.
• The IRS also recommends that you take a quick picture of the pile of items you intend to donate to charity as further proof of your donation.
• In order for your donation to be tax deductible, you must choose a qualified charity or a 501 (c)(3) non-profit organization. Examples of such organizations include, but are not limited to, Amvets, Boy Scouts of America, Girl Scouts of America, Goodwill, Churches and Synagogues, the American Red Cross, the Salvation Army and tax-exempt educational institutions.
• Most taxpayers do not realize that the miles they drive to a charity to drop off their non-cash donations are deductible at $0.14 per mile.

Q: What does ItsDeductible do?
A: ItsDeductible is a revolutionary product that enables taxpayers to properly value their non-cash donations such as used clothing, toys or other household goods, so they can deduct the actual fair market value and receive the full deduction when itemizing their taxes. There is no other product like it available to taxpayers.

Q: How does ItsDeductible help me maximize my tax savings?
A: Every year, millions of taxpayers donate bags of clothing and other items to charity. Yet the vast majority of these taxpayers miss out on tax savings to which they’re legally entitled because they don’t know how much their donations are worth. By providing actual fair market values for thousands of commonly donated items, ItsDeductible enables you to take advantage of the full, legal charitable contribution deduction. This could save you hundreds of dollars on your taxes.

Q: To what types of items does ItsDeductible assign values?
A: ItsDeductible software contains valuations for thousands of commonly donated items such as: Women’s and Men’s Clothing, Girl’s and Boy’s Clothing, Toddler and Infant Clothing, Baby Supplies and Equipment, Toys and Games, Sporting Goods and Exercise Equipment, Furniture and Appliances, Household Goods and Books and much, much more!

Q: How does ItsDeductible determine the fair market value of donated items?
A: ItsDeductible software uses patent-pending Intelligent Indexing technology, combined with a nationwide network of manual data collection. This powerful software accurately applies the fair market value to thousands of commonly donated items. Each item is given a specific value based on its condition good, fair or poor which translates directly into tax savings for you.

Q: What does the IRS say about the taxpayer’s right with regards to non-cash donations?
A: IRS publications 526 and 561 both state that it is your legal right to deduct the “fair market value” of donated items. However, no guide is available to help taxpayers value their donations. Therefore, taxpayers must compare their donated items to a few similar items in thrift and consignment stores to get an indication of their fair market value. Because of the time and effort involved, most taxpayers simply choose not to do this and therefore miss out on one of the most significant tax deductions available today. That’s where ItsDeductible can help!