Year-End Car Donation Tax Deduction in Knoxville

If you donate your car through Tennessee Auto Legacy in Knoxville Metro on or before December 31, you can generally claim a 2024 charitable tax deduction when you itemize on Schedule A. For vehicles that ultimately sell for more than $500, your deduction is usually the actual gross sale price of the vehicle, not the Kelley Blue Book value. After your vehicle sells, Heritage for the Blind will mail you IRS Form 1098-C within 30 days of the sale, showing the sale amount you can use when you file.

For vehicles valued at $500 or less, you’ll receive a written acknowledgment, and you may typically deduct up to $500 or the fair market value, whichever is lower. We provide a pickup confirmation so you can document your donation date before year-end. Tennessee Auto Legacy serves the entire Knoxville Metro — from Fountain City, Halls, Powell, and Karns to Farragut, Hardin Valley, Bearden, South Knoxville, and beyond. Pickup is free, your car doesn’t have to run, and our team coordinates everything with Heritage for the Blind so you’re ready at tax time with the right paperwork.

Your year-end donation timeline

Start the 2-minute donation form or call

2 minutes

Submit our simple online form or call Tennessee Auto Legacy. We’ll ask a few basics about your vehicle and location in the Knoxville Metro — North Knoxville, West Knoxville, Fountain City, or surrounding areas — and lock in your donation request before the December 31 IRS deadline.

Pick your free pickup day and time window

5 minutes

Our dispatch team (Monday–Saturday) schedules free towing at a time that works for you, usually within a few days. We pick up from driveways, street parking, or workplaces across Knoxville, Farragut, Powell, and nearby communities. Non-running vehicles are welcome; no inspection or repairs required.

Sign the title and hand over the keys

10 minutes

On pickup day, the tow driver confirms your information, collects the signed title, and provides a pickup confirmation. Keep this document as proof of your donation date — especially important for December 31 donations you plan to deduct on your 2024 tax return.

Vehicle sells, then you receive your IRS paperwork

Within 30 days of sale

Heritage for the Blind handles the sale of your vehicle. If it sells for more than $500, you’ll receive IRS Form 1098-C within 30 days of the sale, showing the exact gross sale proceeds that typically determine your deductible amount. For $500-or-less vehicles, you receive a written acknowledgment.

Claim your deduction when you file your taxes

At tax filing

When you file your federal return, you generally must itemize on Schedule A to claim your car donation deduction. Use the 1098-C or written acknowledgment to report your deduction accurately, and consult a tax professional about how the rules apply to your situation.

Year-end tax deduction facts

Deduction usually equals sale price over $500

For vehicles that sell for more than $500, the IRS generally limits your deduction to the gross sale proceeds, not Kelley Blue Book or your own estimate. The sale amount appears on IRS Form 1098-C sent by Heritage for the Blind.

Special rules at $500 or below

If your donated vehicle is valued at $500 or less, you’ll receive a written acknowledgment. In many cases, you may deduct up to $500 or the fair market value, whichever is lower. Keep this acknowledgment with your tax records for when you file.

You must itemize on Schedule A

To benefit from a car donation tax deduction, you generally must itemize deductions on IRS Schedule A instead of taking the standard deduction. A tax professional can help you compare which approach is more beneficial for your household.

Form 1098-C arrives after the car sells

Once Heritage for the Blind sells your vehicle, they mail you IRS Form 1098-C within 30 days of the sale. This form shows the gross proceeds, vehicle details, and date of contribution, allowing you to document your deduction clearly for the IRS.

Donate by Dec 31 for this year’s taxes

For most donors, the key date is when you donate the car, not when it sells. If pickup and title transfer occur on or before December 31, the donation typically counts for that tax year. Always keep your pickup confirmation as proof of the date.

FAQ

If I donate my car in Knoxville on December 31, can I still claim a deduction for this tax year?

Yes, as long as the donation is completed by December 31 — meaning you’ve transferred the title and the vehicle has been picked up or otherwise delivered — the IRS generally treats it as a donation for that tax year. Keep your pickup confirmation and acknowledgment, and consult a tax professional to confirm how it applies to your return.

How is my car donation deduction calculated if my vehicle sells for more than $500?

When your donated vehicle sells for more than $500, the IRS usually limits your charitable deduction to the actual gross sale price, not Kelley Blue Book or what you originally paid. Heritage for the Blind will send you IRS Form 1098-C showing the sale amount, which you’ll use when you itemize on Schedule A with your tax preparer.

What if my donated car is only worth $500 or less?

For vehicles valued at $500 or less, you will receive a written acknowledgment from Heritage for the Blind. Under IRS rules, many donors may deduct up to $500 or the vehicle’s fair market value, whichever is lower. Save that acknowledgment with your records and check with a tax professional about the deduction you can legitimately claim.

Do I have to itemize to benefit from a Knoxville car donation?

Yes. To claim a federal tax deduction for donating a car, you generally need to itemize deductions on Schedule A instead of taking the standard deduction. If your total itemized deductions (including your car donation) don’t exceed the standard deduction, you may not see additional tax savings. A tax advisor can help you compare options.

When will I receive IRS Form 1098-C or my receipt?

After Tennessee Auto Legacy arranges your donation and Heritage for the Blind sells your vehicle, they will mail you IRS Form 1098-C within 30 days of the sale for vehicles that sell for more than $500. For vehicles at $500 or less, you receive a written acknowledgment. In both cases, you should also keep your pickup confirmation that shows the donation date.

What paperwork do I need to claim my car donation on my taxes?

You’ll need your pickup confirmation (proof of donation date), the written acknowledgment or IRS Form 1098-C from Heritage for the Blind, and your completed Schedule A if you’re itemizing. The 1098-C or acknowledgment lists your vehicle information, donation date, and either the sale price or required details for your return. Always consult a tax professional when filing.

My car doesn’t run. Can I still donate and get a deduction?

Yes. Tennessee Auto Legacy accepts most vehicles in the Knoxville Metro, even if they don’t run, and provides free towing. As long as the donation is completed by December 31 and all IRS rules are met, non-running status doesn’t prevent you from claiming a charitable deduction. The actual sale price or applicable $500 rule will still determine your deductible amount.

Related donation guides

Donate Before Year-End

Donate your car before year-end →

December Deadline

December car donation deadline →

Before December 31