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Donating your car in Michigan is a simple way to support Volunteers of America Michigan (VOA Michigan) while also benefiting from potential tax advantages. Whether you’re looking to clear out an unused vehicle or contribute to a meaningful cause, it’s important to understand how car donation tax deductions work. Here’s what you need to know when donating your car through Cars Helping People®.

Understanding Car Donation Tax Deductions

When you donate a car to a 501(c)(3) nonprofit organization like VOA Michigan, your donation is tax-deductible. The amount you can claim as a deduction depends on how much the vehicle sells for:

  • If your donated vehicle sells for $500 or less, you can claim either the fair market value or $500—whichever is lower—as a deduction, as long as you receive a written acknowledgment from the charity.
  • If your vehicle sells for more than $500, you can claim a deduction equal to the exact sale price. This will be documented on IRS Form 1098-C, which you’ll receive from the nonprofit.

For official IRS guidelines, refer to IRS Publication 4303.

Tax Documents You’ll Receive

After donating your vehicle, you will receive the necessary documentation for your records and tax filing:

  • Thank-You Letter & Tax Receipt – Issued within 30 days of the vehicle sale, serving as your official receipt for tax purposes.
  • IRS Form 1098-C – If your vehicle sells for more than $500 and your Tax Identification Number is on file, this form will be mailed to you, showing the gross proceeds received from your donation.
  • IRS Form 8283 – If your donation qualifies for a deduction of more than $5,000, you’ll need to complete Section B of this form, obtain an acknowledgment signature from the nonprofit, and include it with your tax return.

Common Questions About Car Donations in Michigan

Do I need a title to donate a car in Michigan?

Most car donation programs require a title. If you’ve misplaced yours, the Michigan DMV may be able to issue a replacement before you donate. In some cases, our team can help guide you through the process—just ask!

Do I have to pay any fees when donating my car?

No, donating through Cars Helping People includes free towing, and the entire process is handled at no cost to you.

Where can I check Michigan vehicle transfer requirements?

To learn more about transferring your vehicle title and releasing liability in Michigan, visit this guide on Michigan vehicle transfer requirements.

Donate Your Car in Michigan Today

Donating your vehicle to VOA Michigan is a great way to support local communities while benefiting from potential tax savings.

Ready to make an impact? Start your donation today by submitting an online donation form or calling 800-552-1515 to schedule a free pick-up.