Q: If I donate something other than cash, such as clothing, can I still get a tax deduction?
A: Potentially, yes.If you itemize deductions, qualifying charitable contributions can include cash and noncash donations.
The deduction isn’t new, but the floor is. Taxpayers who itemize have long been able to deduct qualifying charitable donations of money or property. What changed beginning this year is that a new floor applies: You generally can deduct charitable contributions only to the extent they exceed 0.5 percent of your adjusted gross income – a tax-law measure of your income.
For example, if your AGI is $100,000, the floor is $500. If you make $2,000 of otherwise qualifying charitable contributions during the year, generally $1,500 remains above the floor before considering other applicable limits.
This is different from the new deduction for people taking the standard deduction.
As we discussed in the previous tip, beginning in 2026, taxpayers taking the standard deduction can also potentially deduct charitable contributions, but that new deduction applies generally only to qualifying cash contributions. If you want to deduct qualifying donations of property, such as clothing, you generally need to itemize.
Keep good records of what you donate. Whether you donate cash or property, keep appropriate records from the qualified charitable organization. Noncash contributions can require additional documentation, particularly as the value of the donation increases.
The bottom line: If you donate property such as clothing, don’t assume that only cash contributions can provide a tax benefit. Noncash donations can potentially be deductible when you itemize; just remember that beginning in 2026, the new 0.5 percent-of-AGI floor applies to itemized charitable contributions.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
