Also, there are very few refundable tax credits in the tax code (EITC and child credit are the only two for individuals I can think of). That goes to your question about getting the entire (nonexistent) tax credit if it were to (hypothetically) exceed your tax liability.

Anonymous wrote:

Anonymous wrote:I am always shocked how many ppl don't get the difference between deduction and credit. I wish they would make some sort of PSA commercial about it.

Op here, I know what a deduction and is a credit, no where in my post did I say I didn't know the difference. I actually thought that I could skip dealing with the sale of my old car by donating and getting a tax credit, hence my question about the amount credited.

Then the answer is the same: There is no tax credit for donating a car. Never has been, never will be.

It might be a bigger savings than that, since charitable deductions are one way around the AMT.

Op again, and thank you for the helpful responses.

Anonymous wrote:I am always shocked how many ppl don't get the difference between deduction and credit. I wish they would make some sort of PSA commercial about it.

Op here, I know what a deduction and is a credit, no where in my post did I say I didn't know the difference. I actually thought that I could skip dealing with the sale of my old car by donating and getting a tax credit, hence my question about the amount credited.

Anonymous wrote:I am always shocked how many ppl don't get the difference between deduction and credit. I wish they would make some sort of PSA commercial about it.

"Shocked". A lot of people don't itemize their deductions. Not that much of a brain stretch to realize this.

OP, others were correct, it may decrease your tax liability if you otherwise itemize your deductions.

It probably would reduce your taxes, if you currently itemize deductions, but it's not a dollar for dollar reduction. If you pay 20% marginal income tax rate, then you would get $1 off your taxes for every $5 you donate.

If you take the standard deduction normally, then it might or might not reduce your taxes.

I am always shocked how many ppl don't get the difference between deduction and credit. I wish they would make some sort of PSA commercial about it.

thanks, I was under the impression that it reduced my taxes.

you get a deduction (which reduces your taxable income) not a credit (which reduces your taxes).

If I donate my car and receive a tax credit, will I receive the full credit amount if my taxes are less than the car's value?