IRS Form 1098-C, Line by Line: What Donors Actually Need to Know

If you donate a vehicle worth more than $500 to a charity, you should receive a copy of IRS Form 1098-C, "Contributions of Motor Vehicles, Boats, and Airplanes," within 30 days of the disposition. This form tells the IRS — and you — exactly what your deduction ceiling is. Misreading it is one of the most common reasons vehicle-donation deductions get adjusted on audit.

Box 1 — Date of contribution

The day the charity took possession of the vehicle. Your deduction belongs to the tax year in which this date falls, not the year the auction closed.

Box 2a–2c — Year, make, model

Identifying information for the vehicle. Compare against your title to confirm the charity reported the right car.

Box 3 — Vehicle identification number

The 17-character VIN. Mismatches here are the leading cause of bounced acknowledgments — if the VIN on the form does not match the VIN on the title, ask the charity to issue a corrected 1098-C before you file.

Box 4a — Sold at arm's length to unrelated party

If checked, the charity sold the vehicle at auction to an unrelated buyer, and your deduction is limited to the amount in box 4c.

Box 4b — Date of sale

The date the auction or private sale closed.

Box 4c — Gross proceeds

The dollar figure that matters most. This is the gross amount the charity received for the car, before auction fees and processing costs. This is your maximum deduction when box 4a is checked. Forget what Kelley Blue Book says; the IRS does not.

Box 5a — Vehicle will not be sold before significant intervening use

Checked when the charity intends to use the vehicle in its mission — for example, a Meals on Wheels chapter that will drive the car for at least a year on delivery routes. When this box is checked, you can claim the vehicle's fair market value rather than the auction price.

Box 5b — Vehicle will not be sold before material improvement

Checked when the charity will perform substantial repairs (engine rebuild, new transmission, body work) before transferring the car to a needy individual. Like 5a, this entitles you to claim fair market value.

Box 5c — Vehicle is being transferred to a needy individual

Checked by "wheels to work" and "cars for families" programs. Your deduction is the fair market value of the car at the time of donation — typically established with a Kelley Blue Book or NADA private-party value, adjusted for condition.

Box 6a–6b — Did the donor receive goods or services?

If you received anything in return — even a t-shirt or event tickets — the value must be subtracted from your deduction. Most reputable car-donation programs leave these blank.

Box 7 — Donee certifies vehicle was sold to needy individual at significantly below FMV

Specific to programs that subsidize the sale price for low-income recipients. Triggers the same fair market value treatment as box 5c.

What to do if you never receive a 1098-C

Call the charity. They are required by law to send one within 30 days of the disposition (or 30 days of the donation if the vehicle is being kept for charitable use). Without a 1098-C, the IRS will disallow any deduction over $500. If the charity has gone unresponsive, file Form 8283 with whatever documentation you have and attach a written explanation.