Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Junk Yard Towing and other Junk Yard topics.
Just because you've arranged for free junk car pickup and no money has exchanged hands, that doesn't mean your contribution can't be claimed on your income tax. The Internal Revenue Service (IRS) has clearly explained how to go about claiming deductions based on whether the value of your donation is $250 and over or more than $500. For donations in the $250 range (or over), you must itemize deductions on Schedule A of Form 1040 (this applies only to U.S. residents). In addition, you'll need to obtain written acknowledgement of the donation from the charity.