STS Tax Talk: Have Extra Candy? Donate your Halloween candy to the troops and claim a tax deduction! -

Thursday, October 31, 2013

Have Extra Candy? Donate your Halloween candy to the troops and claim a tax deduction! -

Have extra Halloween candy, want to do some good, and looking for tax deductions? Well we have an uplifting solution to your issues! Donate candy to the U.S. troops! Brighten the spirits of someone overseas working to protect your freedom and get a deduction! You can generally deduct the value of these goods as an itemized deduction on your Schedule A. It’s simple – document your gift and get a receipt from the organization.

Charitable organizations with 501(3)c status like Operation Gratitude, Operation Shoebox and Soldiers’ Angels collect leftover Halloween candy to include in care packages for soldiers. They are three of many 501(c)3 organizations on the IRS-approved list to donate tax deductible charitable goods. Always be sure to check the IRS list before claiming your donations are tax deductible, as status can change.

Get Started

First, make sure your donation is one that is wanted or needed. Our research shows Halloween candy is approved by many charities collecting for care military care packages, and that soldiers always need candy.

1. Gather your bags of commercial candy sealed in wrappers. According to known sources, hard candy travels best – which might rule out many of our favorite, chocolate. Chocolate and other types of candy may melt during transit, but that really depends on where it is being shipped too. Ask the non-profit if they have any specific rules or requests.

2. Using flat rate shipping boxes from the USPS work great. They’re free to use, and shipping is often cheaper. Important to note: most organizations probably will not pay the cost of shipping, so do not use shipping expenses as part of your tax deduction.

3. Fill out and include the charity’s donor form(s) for each box you send, so you will be properly acknowledged by the IRS-approved charity. Remember, you’ll need that receipt for your tax records.

4. Check to be sure you are sending to the correct mailing address to avoid any delays or confusion.

5. Send the candy care package on its way! Be sure to follow up with the charity a few days after the package was sent to be sure they received your donation.

Here are direct links to some of the Halloween Candy Donation programs going on:

Operation Shoebox Candy Donation Info

Operation Gratitude's Candy Buy Back Program (They are also collecting dental hygiene donations!)

Want to include a letter from you or your children? Maybe they want to make a colorful drawing to include with the candy? Operation Gratitude has a flyer showing you how!

Want to donate to a local Seattle organization? Seattle’s Lawton Elementary School is in its 8th year of taking Halloween candy donations to give the Ballard Food Bank. Email clparks@seattleschools.org to find out more about donating your candy for their school’s drive.