When you donate a car, how does the tax benefit work?

Question

I mean lets say you get $500 credit for donating a car and my taxes were $2000. So now when I file for taxes, do I get $500 off my tax returns (which means I pay $1500 in tax) or only a % (which will be your normal tax deduction) of 500 off ( which means I get relief 25% of 500 which is 125) tax returns?

Answer 1

its only helpful if you make enough money to itemize your deductions. (my moms an accountant)

Answer 2

Assuming you have other sufficient deductions to get you above the standard deduction base, you may claim the value of the automobile as a charitable contribution.  The value to you will depend on your tax bracket.  As an example, if the car is worth $500, and you are in a 28% bracket, you will receive a tax benefit of $140, which is 28% of the value of the donation.

If you do not have sufficient other deductions to qualify you for itemizing deductions, you get no additional benefit.