How does donating to Goodwill work as far as my tax credit and is there a limit?

Question

How does donating to Goodwill work as far as my tax credit and is there a limit?

Answer 1

Donations have nothing to do with tax credits.  You get a deduction for the fair market value of the goods -- what they'll sell them for, check the shelves for similar items -- that reduces your taxable income IF you itemize.  If you don't itemize it does you no good at all as far as taxes are concerned.

The general limit for charitable donations is 50% of your AGI.

Answer 2

You can receive a deduction for any cash and the FMV value of items donated to Goodwill or any 501c(3) charity.  The value of services (volunteer work) can't be deducted, although expenses incurred in performing such volunteer work can.  There is no limit, but it only works if you itemize deductions.