How Much Can I Deduct for Donating Toys?

Identification

The IRS limits the maximum charitable contribution of any taxpayer to 50 percent of his gross income -- 30 percent for donations to some organizations, such as fraternal organizations. The actual deduction is worth the fair market value of the toys times your tax rate. For instance, if you donate $10,000 worth of toys, and the IRS taxes you at 35 percent, the deduction is only worth $3,500.

The IRS considers toys a "household item," which means they depreciate in value over time. The exception is a brand new toy. The IRS requires you to judge the value of any used item or get an appraisal of the toys from an expert. You can appraise items yourself by comparing your toys to similar items sold by a thrift store. If you donate new, unopened toys, you can go by the price on your receipt as long as the toy is a recent purchase.

If you donate more than $500 worth of toys not in good condition, you must receive an appraisal from a qualified agent, such as a toy expert. Regardless of the value of the donation, you must have a receipt from the organization that includes the name of the charity, the date and a description of the property. If you donate more than $500 worth of toys, you must keep a record of how you attained the property and the method you used to arrive at its value.

Verify the status of a 501(c)(3) organization before you donate to it by finding its name in IRS Publication 78, or through the Internal Revenue Service. You cannot, for instance, take a deduction for donating toys to a neighbor. If you need to pay for an appraisal, you can deduct appraisal fees that exceed 2 percent of your adjusted gross income. Also, you must itemize to deduct a charitable donation. Unless your other itemized deductions exceed the standard deduction, taking a charitable donation deduction does not save you money on your tax bill.