Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: Today’s question comes from Ann. She writes: I regularly make purchases at my local thrift store, where the purchases benefit charity. Can I write those purchases off as charitable donations?
A: Love a good thrift store haul – but unfortunately, those bargains aren’t tax-deductible, as Shawn King, a federally licensed Enrolled Agent and Registered Forensic Investigator with White Crown Accountant, explains.
“Since you receive goods of equal value in return for your payment, it is treated as a retail transaction rather than a donation,” he says. “To qualify for a charitable contribution deduction, a taxpayer must make a true gift of money or property to a qualified organization and itemize deductions on their federal return.”
So while your thrift store finds won’t lower your taxes, you’re still supporting a good cause, and you can still up your game when it comes to scoring the best deals. Here’s one go-to guide.
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