One type of charitable contribution that many people make is to donate eyeglasses. The Lions Club International collects glasses to be used to help other people with eye problems. Other times donations are made to thrift shops. Donated eyeglasses are tax deductible, but you need to deduct an appropriate amount from your taxes.
Where You Can Make the Deduction
The IRS allows donations of money, services and goods to written off as charitable contributions on Schedule A of Form 1040. Because the goods are used in a non-profit program, the Lions Club would be considered an acceptable charitable organization, although other organizations could also qualify, such as Goodwill or a church’s mission program.
Value of Contributions
The IRS requires you to place a value on your non-cash contributions. You should also make sure your contributions are in good condition. For a non-cash contribution, you will need to determine the Fair Market Value, called FMV.
Determining Fair Market Value
Fair market value is generally considered the price that the eyeglasses could be sold for. This can be tricky since prescription lenses, though expensive to the original purchaser, do not have much value to others. Frames, however, could be considered to hold their value fairly well if they are in good shape. You might ask the organization you donate the glasses to if they have a guideline for FMV. The IRS lists four factors in determining fair market value: cost of the glasses, sale of comparable glasses by the organization, replacement cost and expert opinion.
Get a Receipt
Make sure you get a receipt when you drop off the donation. The charitable organization most likely will not place a value on the receipt, but it will show what was donated and when it was donated. You can correlate this with your own record when preparing your taxes. The receipt is also proof to the IRS that the donation was made. Receipts are required for any donation valued at $250 or above.
How It Affects Your Taxes
Since the contributions are deductions, they lower your taxable income. You save a portion of your contribution in actual taxes you owe. How much depends on your tax bracket. For instance, in 2010, if you donate $1,000 and you are in the 28 percent tax bracket, you save $280 ($1,000 x 0.28). However, if you are in the 15 percent tax bracket, you save $150 ($1,000 x 0.15). Note that if you donate more than $500 worth of non-cash charitable contributions, the IRS requires you to complete and submit Form 8283 with your tax return.