Most people either over-claim donated goods (because they think of original purchase price) or under-claim them (because they don't bother looking up values). The IRS has clear rules — and following them actually gets you a bigger, defensible deduction.
IRS Publication 561 defines fair market value (FMV) as: "the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts."
The key word is buyer. FMV is what a stranger would actually pay for your item at a thrift store today — not what you originally paid, not what it cost new, not what you wish it were worth.
IRS rules require that clothing and household items be in "good used condition or better" to be deductible. Items in poor or worn-out condition have a deductible FMV of zero, regardless of what they cost originally.
Special rule: An item in poor condition may still be deductible if its claimed value exceeds $500 AND you attach a qualified appraisal. But this is rarely worth the effort for everyday donated goods.
Use thrift store pricing for your area as a baseline. The Salvation Army Value Guide publishes annual ranges:
| Item | Good Condition ($) | Excellent Condition ($) |
|---|---|---|
| Men's shirt | 2–6 | 6–12 |
| Women's dress | 4–8 | 8–20 |
| Jeans / pants | 4–8 | 8–18 |
| Jacket / coat | 10–20 | 20–50 |
| Shoes (pair) | 3–7 | 7–20 |
| Sweater | 3–6 | 6–15 |
Designer or brand-name items in excellent condition can fetch more — check recent eBay sold listings for comparable items.
Furniture FMV varies widely by style, material, and local market. General ranges:
| Item | Good Condition ($) | Excellent Condition ($) |
|---|---|---|
| Sofa / couch | 50–150 | 150–400 |
| Dining table | 40–100 | 100–250 |
| Dresser / chest | 25–75 | 75–200 |
| Bed frame | 20–60 | 60–150 |
| Bookshelf | 15–40 | 40–100 |
Electronics depreciate rapidly. A 5-year-old laptop may have an FMV of $50–$150 regardless of its original price. Always use eBay "sold listings" for electronics — search for your exact model, filter by "Sold Items," and find the median recent sale price.
These are typically lower-value items. A set of pots in good condition: $5–$30. Books: $0.50–$2 each. Don't obsess over precision here — reasonable estimates based on thrift pricing are fine.
A qualified appraisal is required when:
A qualified appraiser must be credentialed, charge a fee not based on a percentage of the appraised value, and complete the appraisal no earlier than 60 days before the donation and no later than the tax return due date.
When you drop off a bag of mixed clothing, you have two options:
Pro tip: Count items before putting them in the bag. Write the count and condition on a sticky note inside the donation receipt envelope. It takes 30 seconds and makes your documentation airtight.
Built-in fair market value estimates for hundreds of common donated goods — clothing, furniture, electronics. Record donations in seconds with photo receipts.
See Deductly →For informational purposes only. Consult IRS Publication 561 and a qualified tax professional for your specific situation.
Fair market value (FMV) for IRS donation purposes is the price a willing buyer would pay a willing seller when neither is under pressure to complete the transaction and both have knowledge of the relevant facts. For donated goods, this is typically the thrift store resale value — not the original purchase price.
To determine fair market value of donated clothing, check prices at local thrift stores like Goodwill or Salvation Army for similar items in similar condition. The IRS Publication 561 provides guidance. Apps like Deductly include reference value ranges for common donated items based on thrift store data.
For donations of goods worth less than $250, a receipt from the charity is not required but is recommended. For donations of goods worth $250 or more, you must have a written acknowledgment from the charity. For non-cash donations over $500, you must file IRS Form 8283. Over $5,000 requires a qualified appraisal.
You can deduct donated goods under $250 without a formal receipt, but you should keep your own records including a description of items, the date donated, and the charity's name. For items $250 or more, a written acknowledgment from the charity is legally required to claim the deduction.