Sell or donate unwanted goods
If you want to sell or donate your unwanted goods, it’s best that you do some research beforehand. That’s because the IRS has certain rules when it comes to the tax refund you might receive for such items. “For a charitable donation to have an effect on your tax return, you must have enough deductions to allow you to itemize your deductions,” said LeMons.
If the itemized deductions do not exceed the standard deductions, don’t expect charitable donations to help you lower your taxes much. On the other hand, the money you receive for a sold item is not reportable unless you got a higher amount that what you originally paid for that item. If you itemize, the limit on charitable deductions by individuals has been set to 100% of adjusted gross income in 2021, pursuant to the CARES Act.
Read also: Qualified Charitable Distributions Can Lower Your Taxes! Find Out How.
