The short answer: the IRS rules for a Goodwill donation are the same as for any qualified charity. Goodwill gives you a receipt, but figuring out what your items are worth — and keeping a record of how you got that number — is your job.

How Goodwill donations work for taxes

Goodwill is a network of independent, locally run nonprofit organizations. Donations to a qualified organization can be deductible if you itemize, but a charity generally doesn't appraise your items or assign them a value. The value you claim is the fair market value of each item on the day you donate it.

Before you rely on any deduction, confirm that the specific organization is a qualified charity. The IRS offers a free Tax Exempt Organization Search for exactly this.

A simple routine for every Goodwill drop-off

  1. List what you're donating before you leave the house. A quick photo of the bag or box helps.
  2. Get a receipt that shows the organization's name, the date, and the location. At many drop-off locations the receipt leaves the item list and values for you to fill in.
  3. Value each item at what a buyer would pay for it used — thrift-shop pricing is a good yardstick. See how much donated clothes are worth.
  4. Write down your method next to the value, such as "compared with similar items at thrift shops."
  5. Keep it all together with your tax records. Generally that means at least three years after you file.

What if you use an unattended drop box?

If it isn't practical to get a receipt, for example when you leave bags at an unattended donation site, the IRS allows reliable written records instead. Your record should include the organization's name and address, the date and location, a reasonably detailed description of each item, and its fair market value and how you determined it. Make that record the same day.

Don't use the resale price as your deduction

The price Goodwill later puts on a tag isn't your deduction. Your deduction is the fair market value of the item on the date you gave it, in the condition it was in. A shirt that cost $60 new and is in good condition is worth roughly what a buyer pays for a used shirt, not $60. Items that aren't in good used condition or better generally can't be deducted at all.

Bigger donations

  • For a single donation worth $250 or more, get a written acknowledgment from the organization that describes what you gave.
  • If the deduction for an item or a group of similar items (like all your clothing) is more than $500, you generally need Form 8283.

The full breakdown is in IRS donation receipt requirements.

How DonationValue helps

DonationValue lets you log a Goodwill drop-off in seconds by speaking or searching, assigns a condition-based estimate to each item, and saves the charity, date, and values together. At tax time it can generate a report that lists every donation. See how valuations work. DonationValue is not affiliated with or endorsed by Goodwill Industries.

This guide is educational and general in nature, not tax, legal, or financial advice. Tax rules change and depend on your situation, so check the IRS sources below or talk to a tax professional. Last reviewed October 6, 2026.