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That's exactly what they do... they want proof that what you claim is the actual value of that item.
NO WAY I would claim $4 for VHS tapes. They are more than likely WAY off on all the other thing too.
So would TurboTax donation values be valid in an audit?
Did you not read that the posters here feel that TT's values are inflated?
It is up to YOU to prove value, not some computer program.
How will you prove to the government that the clothing was worth what you are claiming? TT does not know if the sweaters are snagged, or if the pants are stained, or if the VHS tapes work. YOU have to prove that under oath (if it gets to that).
If you cannot, you will have penalties... and they can audit you for other things/ other years if they suspect fraud.
Did you not read that the posters here feel that TT's values are inflated?
It is up to YOU to prove value, not some computer program.
How will you prove to the government that the clothing was worth what you are claiming? TT does not know if the sweaters are snagged, or if the pants are stained, or if the VHS tapes work. YOU have to prove that under oath (if it gets to that).
If you cannot, you will have penalties... and they can audit you for other things/ other years if they suspect fraud.
Probably TT values are a nationwide average. Maybe in NYC used VHS tapes sell for $4 each but certainly not in the area where I live.
I also read that you can value donations of items by ebay averages. I might check that out just to see how that compares to TT.
Seeing what something sold for on eBay still does not pertain to YOUR item and its value, unless your item is identical in every way. And again, YOU have to prove that it is.
This is a really interesting article. The chart on average deductions for US taxpayers showed a higher interest deduction than I am taking, and a lower charitable deduction.
Also, I am not taking any medical deduction and according to the chart every income group showed an average medical deduction.
How are those medical averages even possible? You can only deduct the medical expenses that go beyond 7.5% of your AGI. So if you "make" 100K, the first $7,500 of medical expenses do not count toward itemized deduction.
Quote:
US taxpayers' average deductions Adjusted gross incomeInterest****Taxes******Charity****Medical
Under $15,000*******$8,838*****$3,337*****$1,496****$8,4 14
$15,000-$29,999*****8,434*****3,184*******2,048*****7,783
$30,000-$49,999*****8,699*****3,943*******2,274*****7,028
$50,000-$99,999*****10,153*****6,247******2,775*****7,269
$100,000-$199,999***13,456*****11,069*****3,888*****9,269
$200,000-$249,999***17,572*****18,524*****5,947*****21,599
$250,000 and up*****25,227*****48,317*****18,488****38,149
How are those medical averages even possible? You can only deduct the medical expenses that go beyond 7.5% of your AGI. So if you "make" 100K, the first $7,500 of medical expenses do not count toward itemized deduction.
I know, I wondered the same thing!
I have NEVER been able to deduct any of my medical expenses. In 2012 I had higher medical costs than most years because I paid for glasses and dental work for my kids and a couple prescriptions. But it wasn't even 1% of my income.
I can't believe the average person has enough medical expenses to be able to have that high of a deduction.
The average person doesn't.
As I read it, that chart shows the average deduction... which is nowhere near the same thing.
Yeah but considering the relative popluations of people who can claim anything via medical deduction vs. those who can't, it would take an insanely high amount from those who do in order to meet those numbers.
Amounts so high that I have to believe there's been an error somewhere. So your distinction is noted, but it should make a difference.
For example, it says people in the 50K-99K range have an average of 7,269 for medical.
What % of that income bracket population do you think has > 7.5% AGI medical expenses? 1%?
I'll be generous and say 2%. That means the average person deducting medical expenses (meaning they actually paid these!) has an annual bill around $365,000. No way.
It quite possible or even probable that the figure is medical expenses before the 7.5% limitation- that is listed on people's Schedule A and thus is possible to be fished from databases.
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