Donate by Dec. 31 for a 2024 car tax break in Tennessee

Donate your car anywhere in Tennessee by December 31 and your 2024 tax deduction can equal the sale price. Volunteer Wheels handles the towing, title, and IRS forms with fast, free pickup.

Donate your car in Tennessee by December 31 and you may claim a 2024 federal tax deduction when you file. With Volunteer Wheels, most vehicles picked up in Tennessee are sold at auction. If your car sells for more than $500, your deduction is generally the actual gross sale price, not Kelley Blue Book. After the vehicle sells, we mail you IRS Form 1098-C within 30 days of the sale, showing what it brought. For vehicles that sell for $500 or less, we send a written acknowledgment, and you may usually deduct up to $500 or the fair market value, whichever is lower. To use the deduction, you must itemize on Schedule A. Keep your pickup confirmation as proof of the donation date for the IRS.

Volunteer Wheels serves donors across Tennessee—from Memphis, Germantown, and Bartlett to Nashville, Franklin, and Hendersonville; from Knoxville, Maryville, and Oak Ridge to Chattanooga, Cleveland, and throughout the Tri-Cities, including Johnson City and Kingsport. We know year-end in Tennessee is busy with bowl games, family visits, and winter weather. That’s why our process is simple: a 2-minute form, free towing even if your car won’t start, and no inspection or repairs needed. Proceeds from your donated vehicle support Heritage for the Blind, a 501(c)(3) serving people who are blind or visually impaired. For detailed tax advice about your situation, always consult a tax professional.

Your year-end donation timeline

1

Lock in your 2024 deduction date

2 minutes

Complete our online form or call to schedule your free pickup anywhere in Tennessee. The IRS cares about your donation date, not the sale date, so make sure you donate on or before December 31 to count for the 2024 tax year.

2

Confirm title and pickup details

5 minutes

Our team reviews your vehicle info, answers tax-deduction questions, and confirms your pickup location in Tennessee—whether you’re in Knoxville, Nashville, Memphis, Chattanooga, or beyond. We’ll explain what to sign on your title and what ID to have ready.

3

Free towing at your Tennessee address

30–60 minutes (pickup window)

A licensed tow partner meets you at home, work, or a storage lot. No emissions test, repairs, or cleaning required. Non-running and damaged vehicles are welcome. You’ll receive a pickup confirmation—keep this as proof of your donation date for your records.

4

We handle sale and IRS paperwork

Within 30 days of sale

We arrange the sale of your vehicle. If it sells for more than $500, we mail IRS Form 1098-C within 30 days of the sale showing the gross sale price. If $500 or under, you receive a written acknowledgment for your records instead.

5

Claim your deduction at tax time

When you file

At filing time, give your acknowledgment or Form 1098-C to your tax preparer. If you itemize on Schedule A, you can generally deduct the amount allowed. Always consult a tax professional to see how the deduction works in your specific situation.

Year-end tax deduction facts

Form 1098-C for vehicles over $500

If your donated vehicle sells for more than $500, Volunteer Wheels sends you IRS Form 1098-C within 30 days of the sale. This form shows the buyer’s gross purchase price, which is the key number for your potential deduction.

Deduction equals sale price, not book value

For vehicles sold above $500, the IRS usually limits your deduction to the actual gross sale price shown on Form 1098-C, not Kelley Blue Book or what you think the car is worth. This is the amount you give to your tax professional.

$500-or-less vehicles use written acknowledgment

If your car sells for $500 or less, you receive a written acknowledgment instead of Form 1098-C. In many cases, you may deduct up to $500 or the vehicle’s fair market value, whichever is lower, when you itemize deductions.

You must itemize on Schedule A

Car donations are charitable contributions. To use them, you generally must itemize deductions on Schedule A of your federal tax return. If you take the standard deduction, you typically cannot add an extra car-donation write-off.

Donate by Dec. 31 for this tax year

The IRS looks at when you donate, not when the car sells. If your Tennessee donation happens on or before December 31, it generally applies to this year’s taxes, even if the vehicle sells and Form 1098-C arrives early next year.

FAQ

If I donate on December 31 in Tennessee, does it count for this tax year?
Yes. For federal taxes, the key date is when you make the donation, not when the vehicle sells. As long as your car is donated by December 31, it generally counts toward this year’s return. Keep your pickup confirmation and acknowledgment or Form 1098-C as proof for your records.
How is my car donation deduction amount actually calculated?
If your car sells for more than $500, your potential deduction is usually the gross sale price listed on IRS Form 1098-C, not Kelley Blue Book. If it sells for $500 or less, you’ll typically deduct up to $500 or fair market value, whichever is lower. You must itemize on Schedule A to use this deduction; ask a tax professional about your situation.
When will I get my tax paperwork after donating in Tennessee?
First, you’ll receive a pickup confirmation when your vehicle is towed—keep that for your donation-date proof. After the vehicle sells, Volunteer Wheels mails either IRS Form 1098-C (for sales over $500) or a written acknowledgment (for $500 or less) within 30 days of the sale. Save these documents for your tax preparer.
Can I claim the deduction if I take the standard deduction?
Usually, no. Car donations are charitable contributions that only reduce your taxable income if you itemize deductions using Schedule A. If you plan to take the standard deduction, you may not see extra tax savings from a vehicle donation. A Tennessee tax professional can review whether itemizing makes sense for you this year.
What if my car doesn’t run or has no current inspection?
Non-running vehicles are welcome. We arrange free towing anywhere in Tennessee—Memphis to Kingsport—so you don’t need current registration, inspection, or emissions testing. Just have the title ready if possible. The condition may affect the sale price, but we still handle all logistics and send the appropriate IRS documentation afterward.
Will I know what my car sold for before filing my taxes?
Yes. If your vehicle sells for more than $500, IRS rules require us to send Form 1098-C within 30 days of the sale, showing the gross sale amount. That number is what you share with your tax preparer. For $500-or-less vehicles, your written acknowledgment will indicate the applicable limit for your potential deduction.
Do Tennessee state taxes change how my car donation works?
The rules described here are federal IRS rules that apply to Tennessee residents. Tennessee doesn’t have a traditional state income tax for wages, so the main benefit is usually at the federal level. Because everyone’s tax picture is different, it’s wise to ask your tax professional how a car donation fits into your overall plan.

Related donation guides

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December Deadline
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Before December 31
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Donate your car in Tennessee today and lock in your potential 2024 tax deduction before the December 31 IRS cutoff. Our 2-minute form and free towing make it effortless—no repairs, no selling hassles, and non-running vehicles welcome. Volunteer Wheels handles the sale and sends you the written acknowledgment or IRS Form 1098-C for donations over $500, so you have what you need at tax time. Call now or start online to schedule your pickup and support Heritage for the Blind with your year-end car donation.

Related pages

Donate Before Year-End
Donate your car before year-end →
December Deadline
December car donation deadline →
Before December 31
Donate your car before December 31 →

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