Americans will soon be filing their 2003 taxes and could be paying hundreds more than necessary. The Internal Revenue Service reports that more than 20 million Americans deduct charitable donations of clothing, toys and other household items. But many significantly overpay taxes because they undervalue their non-cash donations.
Taxpayers have the legal right to deduct the "fair market value" of their donated items. (IRS Publications 526 and 561) However, determining the accurate fair market value is no easy task. As a result, most taxpayers often guess conservatively, perhaps valuing a bag full of donated items at only $50 when the actual value could be $300 or more. Ultimately, the result is overpaid taxes.
ItsDeductible™ software from Intuit, the makers of TurboTax®, offers a solution to this widely overlooked deduction. ItsDeductible assigns accurate fair market valuations to donated items; ensuring taxpayers receive the full deduction to which they are legally entitled. With ItsDeductible, taxpayers can be confident in the accuracy of their deduction while maximizing their tax savings.
"Taxpayers need to be sure they understand their legal rights related to charitable deductions," said Gordon Whitten, product group director for ItsDeductible. "Simply valuing donations accurately will undoubtedly save taxpayers hundreds on taxes this year."
All deductions are not created equal. A man's designer suit, for example, is worth $100 in poor condition, $274 in fair condition and $399 in good condition. Similarly, a sofa could have a fair market value between $45 and $253, according to the ItsDeductible database. The valuations are determined in strict accordance with IRS guidelines and are backed by an exclusive DatAssure™ Guarantee ensuring the accuracy of the valuation data. ItsDeductible guarantees at least $300 in tax savings or customers can return their product for a full refund of their purchase price. In addition to software, ItsDeductible is available in workbook format and products range in price from $19.95 to $29.95. ItsDeductible can be purchased at local retailers or at www.shopintuit.com.
