Form 1098-C, Box by Box

What is Form 1098-C? It is the IRS form a charity files and sends you to report a donated car, boat, or airplane, and you need it when your claimed value is more than $500, whether the vehicle is a $3,000 car or a $30,000 one. This page walks through it box by box, from the date and vehicle details to the sale price and what to do with your copy at tax time.

You can claim this only if you itemize deductions. This page is general educational information, not tax, legal, or accounting advice, and because we are a charity rather than a tax advisor, we can't speak to your individual situation. Tax law is complex and changes, so talk with your own accountant, tax advisor, or attorney before you claim anything, since only a qualified professional who knows your full financial picture can advise you.

What Is A 1098-C Form?

Form 1098-C is the charity's report of your donation. It shows who donated, what was donated, and what the charity did with the vehicle. The charity files it with the IRS and sends you Copies B and C.

Copy B is the copy you attach to your return, and Copy C is for your records. Your copy may show only the last four digits of your taxpayer identification number, but the IRS says "the issuer has reported your complete TIN to the IRS."

We send your tax form within 30 days of your vehicle selling. If you're choosing a charity, you can read who issues your 1098-C.

Boxes 1 To 3: The Date And The Vehicle

The instructions on Copy B say Box 1 "shows the date the charity received the donated vehicle." That date, not the sale date, sets the tax year of your donation. Your deduction counts for the year you donate, even if your vehicle sells the following year.

Boxes 2a to 2d show the odometer mileage (motor vehicles only), year, make, and model. Box 3 shows the vehicle identification number (VIN), the hull identification number for a boat, or the aircraft identification number for an airplane.

Box 4a: Sold In An Arm's Length Transaction To An Unrelated Party

The charity checks Box 4a when it sells your vehicle without a significant intervening use or material improvement. The IRS instructions say the charity "must certify that the sale was made in an arm's length transaction between unrelated parties."

In plain terms, an arm's length sale is a sale between independent parties, each acting in its own interest. An unrelated party is a buyer with no special relationship to the charity. When Box 4a is checked, the sale price is what sets your deduction, and this is the box that applies to a donation we sell.

Box 4b: Date Of Sale

Box 4b shows the date the charity sold your vehicle. The instructions on Copy B say the charity must send you the form "no later than 30 days after the date it sold the donated vehicle (if box 4a is checked)."

Do not confuse Box 4b with Box 1. The sale date starts the 30-day clock, but the date in Box 1 sets your tax year.

Box 4c: Gross Proceeds

Box 4c is the box that sets your deduction. The IRS instructions tell the charity to "enter the gross proceeds from the sale of the vehicle. This is generally the sales price. Do not reduce this amount by any expenses or fees."

In plain terms, Box 4c is what your vehicle sold for. Your deduction is what your vehicle sells for. If it sells for $500 or less, you can generally claim its fair market value up to $500.

Towing, auction and processing costs do not come out of your deduction. The 1098-C reports gross proceeds. See how your deduction is calculated for more.

Boxes 5a, 5b, And 5c: The Exceptions

Boxes 5a and 5b are the exception boxes. Both routes use fair market value, and the difference is how the number gets proven. When either box is checked, the sale no longer sets the number, and what the donor deducts is fair market value, which is an appraiser's opinion.

• Box 5a: The charity certifies that the vehicle "will not be transferred for money, other property, or services before completion of material improvements or significant intervening use."
• Box 5b: The charity certifies that the vehicle "is to be transferred to a needy individual for significantly below fair market value in furtherance of donee's charitable purpose." The condition is that the transfer must be significantly below fair market value and in direct furtherance of the charity's purpose of relieving the poor and distressed or underprivileged who need a means of transportation. That is why auction sales cannot qualify, because "Vehicles sold at auction are not sold at prices significantly below FMV, and the IRS will not treat vehicles sold at auction as qualifying for this exception."
• Box 5c: The charity describes in detail the material improvements or significant intervening use and how long the use lasts.

The vehicle usually still gets sold in the end on this route. Above $5,000, it means a qualified appraisal and Form 8283, Section B. Your Form 1098-C shows which box is checked, and that tells you which route applies.

Boxes 6a, 6b, And 6c: Goods And Services

These boxes report anything the charity gave you in return for the vehicle. Box 6a asks, "Did you provide goods or services in exchange for the vehicle?" Box 6b shows the charity's good faith estimate of their value, and Box 6c describes them.

The instructions on Copy B explain the effect: "Generally, the amount of your charitable contribution is reduced by the value of the goods and services provided."

Box 7: A Claimed Value Of $500 Or Less

The IRS instructions say the charity must check Box 7 "if the vehicle has a claimed value of $500 or less or the donor did not provide a TIN." The printed text of Box 7 reads: "Under the law, the donor may not claim a deduction of more than $500 for this vehicle if this box is checked." That is the $500 rule described under Box 4c.

Form 1098-C Instructions For Donors

The instructions on Copy B say: "You must attach Copy B of Form 1098-C to your income tax return in order to take a deduction for the contribution of a qualified vehicle with a claimed value of more than $500."

If you e-file, the same instructions say you must "(a) attach Copy B of Form 1098-C to Form 8453 and mail the forms to the IRS, or (b) include Form 1098-C as a PDF attachment if your software program permits." If you do not attach it when required, "the IRS will disallow your deduction."

If your deduction is more than $500, you file Form 8283, Section A. Section A applies at every value, including above $5,000. Attach your 1098-C to the Form 8283. See Form 8283 and vehicles over $5,000 for more.

Form 8283 has two halves. Section A is the short one. Section B is the long one, for donated property worth more than $5,000, and it is the one that requires a qualified appraisal and an appraiser's signature.

The heading printed on Section B of the form reads: "Section B. Donated Property Over $5,000 (Except Publicly Traded Securities, Vehicles, Intellectual Property or Inventory Reportable in Section A)." Vehicles are named in the exception. That is why you do not need a qualified appraisal, no matter what your vehicle sells for, when we sell it: the sale price sets your deduction.

An appraisal is an opinion about what a vehicle would sell for, and the 1098-C reports what it did sell for. Keep Copy C with your tax records. We can't give tax, legal, or accounting advice, say whether you can claim a deduction, value your vehicle or advise on its fair market value, help complete IRS forms or a tax return, or obtain a qualified appraisal for you.

Frequently Asked Questions

Who issues Form 1098-C?

The charity that receives your vehicle files Form 1098-C with the IRS and sends you Copies B and C.

What is the difference between Form 1098-C and Form 8283?

Form 1098-C is the charity's report of your donation. Form 8283 is the form you file with your return when your deduction is more than $500.

Does a 1098-C mean I will get a deduction?

No. You can claim a deduction only if you itemize deductions, and we can't give tax advice, so talk to your own tax advisor.

Start Your Donation

Ready to donate? Start your car donation online or call 1-855-278-9474. For the IRS's own overview, see its guidance on vehicle donations.

Quoted text comes from the instructions printed on Form 1098-C (Rev. April 2025), the Instructions for Form 1098-C (11/2019), and Form 8283 (Rev. December 2025).