For donations to Goodwill you can generally deduct the fair market value of the donated property if you itemize deductions and Goodwill is a qualified charitable organization. Fair market value is what a willing buyer would reasonably pay for the item in its current condition, which is usually similar to local thrift store prices rather than original purchase cost. There is no fixed dollar cap per bag or per visit. Instead, your total charitable deduction is limited by percentage of adjusted gross income, which depends on the type of property and the type of charity. You must keep receipts or written acknowledgments for contributions of 250 dollars or more. If your total noncash gifts for the year exceed 500 dollars you are required to file Form 8283.
