Form 1098-C, explained
Form 1098-C is the IRS form a charity sends a donor after selling a donated vehicle worth more than $500. It tells you (and the IRS) exactly how much you can deduct. Here's what each part means.
The 30-second summary
Form 1098-C — 'Contributions of Motor Vehicles, Boats, and Airplanes' is issued by a 501(c)(3) charity to a donor within 30 days of selling a donated vehicle worth more than $500.
Three copies: Copy A goes to the IRS (charity files this). Copy B you attach to your tax return. Copy C you keep for records.
Box-by-box walkthrough
Box 1 — Date of contribution: the date you transferred title to the charity (not the date of sale).
Box 2 — Description of vehicle: year, make, model, VIN.
Box 3 — Date of sale: when the charity sold the vehicle.
Box 4a — Vehicle was sold in arm's-length transaction: almost always checked YES for auction sales.
Box 4b — Date of sale.
Box 4c — Gross proceeds from sale: THE NUMBER. This is your deduction (unless the $500 safe-harbor applies).
Box 5a/5b — If the charity certifies the vehicle was used or improved: rare, but if checked, you may deduct fair market value instead.
Box 6 — Goods or services received: if the charity gave you a gift (vacation voucher, etc.), the value reduces your deduction.
Box 7 — Did the donor know about the sale before the sale? usually no.
The $500 safe harbor
If your vehicle sold for $500 or less, the charity doesn't have to issue 1098-C with box 4c filled. You can claim a deduction of up to $500 (or the vehicle's fair market value if less) without further documentation.
This rule exists because the IRS recognized that requiring a 1098-C for a $200 clunker would deter donations.
If you don't receive your 1098-C
By law, the charity must send Form 1098-C within 30 days of the sale (or within 30 days of donation if the charity uses the vehicle for its mission).
If 30 days pass with no form: contact the charity directly. Most cases are administrative delays.
If the charity won't issue 1098-C, contact the IRS at 1-877-829-5500 and file Form 8453 with your tax return noting the missing acknowledgment. Your deduction may be limited to $500 in this case.
Common questions
Why is the sale price so much lower than KBB? Auction prices are wholesale; KBB shows retail. Auctions typically clear 60-75% of KBB retail.
What if the charity makes 'material improvements' before selling? You may deduct fair market value rather than the sale price. The charity will indicate this on Form 1098-C box 5a/5b.
Can I deduct without Form 1098-C? Yes, if your deduction is $500 or less. Above $500, you need 1098-C plus Form 8283 Section A. Above $5,000, you also need a qualified appraisal.
Ready to donate somewhere transparent?
Cars Helping Kids — Georgia 501(c)(3), free nationwide pickup, IRS Form 1098-C, no parent religious org, no AG actions, no active lawsuits.