Did you know you can earn a tax deduction by donating used computers to nonprofits?
That’s right, by cleaning out your old electronics and donating them to community organizations or other good causes, you can help low-income families and get a nice tax break.
It’s a win-win situation!
Here is how PCs for People can help you get a tax deduction by recycling your old computer or other devices.
Is Donating a Laptop Tax Deductible?
The longer you keep a computer, the more you can benefit from its use and reduce e-waste. However, at some point, you might want to replace your equipment before its usefulness runs out.
Perhaps you need a more powerful device, or your current one is running into issues despite running decently.
Reduce clutter, reuse equipment, and get a federal tax deduction by donating your old computer to a qualifying nonprofit organization.
In most cases, the donated item must be usable for you to receive the benefit. To apply, you must also fulfill all Internal Revenue Service rules and filing requirements.
Where To Donate My Old Computers and Used Electronics?
PCs for People is a nonprofit organization that can help you donate a computer to support national charities.
One such charity is Computers with Causes. You can go to the Computers with Causes website and select your state, giving you access to an online form with information about what you want to donate.
The National Cristina Foundation (NCF) can also help match the office equipment you wish to donate to a nonprofit organization that might need it.
The World Computer Exchange has more than 945 partner organizations throughout Africa, Eastern Europe, the Middle East, and Latin America. They only accept working items, and you can schedule a delivery time to donate at their nearest chapter. As a note, Apple devices are only accepted at their Boston chapter.
Donations can also be dropped off at the local chapters located in eight U.S. cities and the Commonwealth of Puerto Rico.
Another organization that facilitates donations is Donation Town.
What Benefits Do I Get From Donating My Old Computers?
Large donations of desktops, phones, notebooks, and printers are a great way to support your local community.
You or your business will receive a current market value tax deduction, reduce e-waste, and support low-income families throughout the United States.
For Individual Donors
When an individual donates old computer equipment, the charitable deduction for technology contributions is equivalent to the fair market value, which is the retail value in the present market.
The donation is tax deductible for the year in which the organization obtains the equipment. Even the shipping costs are tax deductible under certain applicable rules and regulations, with free pickup included in some states.
For Corporate Computer Donations
For corporate donors, the IRS provides a tax deduction for electronic equipment donated to a charitable organization or a nonprofit, like PCs for People.
Tax deductions are limited to the amount of the donor’s tax basis of the property contributed. Exceptions may apply, so it’s important for corporate donors to consult their tax advisors to understand their possible returns.
What Are the IRS Rules for Donating Computer Equipment?
The IRS has published all the guidelines for donating computer equipment on its official government page.
The first thing to understand about IRS donations is fair market value. The IRS defines fair market value as the price you’d obtain as a willing seller dealing with a willing buyer, both in the know of all the relevant facts of the equipment.
For laptops and electronic equipment, fair market value is usually less than what they paid new. You can prove your laptop’s current market value by keeping its sales receipt, canceled check, or a description from the recipient.
You can also take a deduction from an item in worse condition if you receive a qualified appraisal for a fair market value higher than $500. This is difficult to get if you’re donating an older laptop and is usually reserved for high-end computers.
Who Will Receive My Donated Computers?
The organization will take care of the donated property and ensure the equipment reaches qualified individuals and community organizations in your area.
Public and private schools might need computers in computer labs, classrooms, science labs, libraries, or faculty break rooms.
Colleges, especially those that teach computer technical support or repair, might accept a computer donation for use as instructional machines.
Senior citizen centers and local charities also need used computers and other electronic equipment to train their staff. For example, desktop computers and laptop computers are used by the Salvation Army to raise funds for their programs.
You can also donate to American households lacking a computer. Around 82 million Americans lack access to computers or the internet at home.
How Do I Claim My Tax Deduction?
You’ll need a written receipt to claim a deduction of $250 or more for your laptop and other donated electronic equipment.
The tax receipt should list the name and address of the nonprofit organization, a description of the donated equipment, and the date of your donation. The receipt has to be provided at the time of the donation. It’ll also tell what kind of goods and services you obtained in return and their value.
If you don’t get a receipt for a donation worth less than $250, you’ll need to write down the information to keep for your records. An electronic device donated to a charity organization might earn an additional tax refund. These smaller donations are usually analyzed on a case-by-case basis.
What Equipment Qualifies for a Computer Donation Tax Deduction?
In addition to the more standard devices such as desktop or laptop computers and accessories, equipment donations can include circuit boards, video game consoles, art monitors, power cords, digital cameras, CRT monitors, working tablets, hard drives, and electronic household goods.
Larger items are disassembled to their component level, while smaller ones can be recycled or reused altogether.
Donate Your Equipment to PCs for People Today
PCs for People accepts computer donations from companies and individuals looking for a tax refund.
Help support low-income households and charities in the U.S. by providing them with functional equipment.
Learn how to donate your electronic devices today by visiting our website here.
