If you have a car that you no longer need, you’ve probably considered getting rid of it by selling it online or trading it in. Unfortunately, these options can be difficult and confusing, and—if your car doesn’t have a very high value—they’re not always worth the effort.

Donating your car is a fast and simple way to get rid of it while simultaneously helping out your community.

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How to donate a car in Texas

Aside from philanthropy, convenience is the number one reason to donate your old car rather than try to sell it. Here’s all you have to do:

Choose an organization. Car donation is a growing industry, which means there’s also a growing amount of scammers out there. Carefully ensure that the organization you select is reputable by using the IRS’s

online search tool

to check Pub. 78 data.

Gather your paperwork. You’ll likely just need to donate your car with a

signed title

, but the recipient may require additional data regarding your car’s make/model and additional specifics.

Determine your car’s value. The state of Texas doesn’t charge an income tax, so they do not allow tax deductions for vehicle contributions. However, you can still file for federal tax deductions! You’ll need to

determine the actual cash value

of your vehicle when you file your taxes.

Arrange for pickup. Believe it or not, you won’t even have to drop off your car to donate it—most charities will pick it up! Simply call or set up an appointment online.

Hold onto your receipt. You’ll need it to claim your tax deduction the next time you file.

How do taxes work when donating a car?

A commonly known benefit of donating your car is the potential tax deduction. The state of Texas doesn’t charge income tax, so they don’t allow tax deductions for donated vehicles. However, you can still qualify for federal tax deductions.

Organizations will typically sell your vehicle to raise funds for their charity, so your federal tax deduction will be based on the amount your car sells for.

There’s a minimum $500 deduction, which means you can claim up to $500 for any car donated, even if the vehicle is sold for less than that amount. All you need is a receipt.

If your car sells for more than $500, you can claim the exact sale price on your taxes. An

IRS 1098C form

will be necessary, and if your car sells for over $5,000, you’ll also need to file an

IRS 8283 form

Occasionally, an organization will keep your car, not sell it. In this case, simply claim the fair market value and submit a 1098C form. If the vehicle is valued at over $5,000, an IRS 8283 form will be required, along with a third-party appraisal.

MORE:

What to consider before donating your car

Where to donate a car in Texas

The following organizations are great options for car donors in Texas:

Cars for Prostate Cancer

is a car donation service run by the Prostate Cancer Awareness Project. They make donating your vehicle incredibly simple—even if you’ve

lost your title

or have an expired registration, they’ll pick up your car for free. Service is often available same day!

Wheels for Wishes

Support your

local Texas Make-A-Wish chapter

by donating your unwanted wheels to

Wheels for Wishes

. Make-A-Wish grants wishes to children with life-threatening medical conditions, allowing kids to simply be kids again! Donating a car, motorcycle, boat, RV, or other vehicle is fast, free, and easy.

Goodwill Car Donations

When you think of Goodwill, you probably think of their secondhand stores. They take secondhand cars, too! They’ll accept running or non-running vehicles of every variety, from cars and SUVs to jet skis and golf carts.

Goodwill Car Donations

provides disadvantaged individuals with job training, employment services, and other critical community-building support.

Vehicles for Veterans

Donate your vehicle and give back to disabled veterans via

Vehicles for Veterans

. Proceeds fund programs that provide services offered to vets in need of assistance and support. (Among this population, the need for support is greater than ever. Homelessness, disability, and PTSD are prevalent among veteran communities.)

Cars2Charities

Most individual charities are unable to process their own car donations, so they hire a company like

Cars2Charities

that specializes in accepting and processing vehicle donations. They’ll even take steps to

spruce up your old car

so that it can sell at the highest price possible.

MORE:

8 charity organizations will pick up donations from your home

How to find affordable car insurance quotes in Texas

If you’re getting rid of an old vehicle, chances are that you recently acquired a new one. Protect your new ride with quality car insurance.

Jerry

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If you’re hesitant to

switch car insurance companies

because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and can even help cancel your old policy!

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