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DONATE YOUR CAR FOR TAX CREDIT IN ILLINOIS
Giving back to charity groups is a great way to help those in need. In Illinois, you can earn tax deductions on some charitable donations. One of these types of donations is donating a car to a charity in Illinois. When you donate your car to an authorized charity group, you can get tax credit for your donation and help out with your taxes.
To donate your car and receive tax credit, you must fill out the required paperwork for the company you are donating to and get back an acknowledgement that contains at least your name, the VIN from the car, the date of the donation, and any information about what you got in return (if you got anything in return). On your tax forms for that year, you will have to itemize your deductions in order to get the credit for your car donation. This can be done manually or through a tax service.
ADVANTAGES OF DONATING
- Tax deductions given when the donation is made to an authorized charity group
- Your spare vehicle is used or sold for a good cause
- Deductions equal to at least $500 or fair market value (whichever is lower) if vehicle is sold at a discount, used by the charity, or given away. Deductions can equal the price for which the car was sold in an auction or at fair market value.
TOP FOUNDATIONS FOR DONATIONS
- Make-A-Wish: Wheels for Wishes
Donating your car to this foundation helps to support the Illinois Make-A-Wish foundation that grants the wishes of children suffering from serious or terminal illnesses. Your vehicle can make a huge difference in whether or not those wishes are possible.
- Cars For Veterans
Here you can donate your vehicle for the benefit of US military veterans. Your donation will be used to fund programs which benefit veterans around the country. In addition to being 100% tax deductable, you will also receive a 3 day vacation voucher for free.
- Donation Line
While this is not a charity group in itself, the company helps facilitate your donation by giving you an easy to fill form, listing instructions about how to donate, and offering a list of authorized charities for you to donate to. They will also come and pick up your car, running or not, for free.
- Cars for Breast Cancer
This is a blanket charity that accepts donations and passes them on to other breast cancer charities of your choice. If there is a particular charity you are passionate about, you can donate your car through this charity and it will end up with the one you picked. Otherwise, the vehicle will be donated to the charity with the greatest needs.
SUMMARY
Donating an old vehicle, even one that isn’t running anymore, can do a lot to help charity organizations in Illinois. If you donate to the right charities you will get 100% tax deductions from your donations. This tax credit can be of more benefit to you than leaving a car sitting in the garage for years or trying to sell it on your own.