Year-End Car Donation Tax Deduction in Indianapolis

Donate your car in Indianapolis by 11:59 p.m. on December 31 and, in most cases, you can deduct the actual sale price on your federal taxes. Here’s how it works: if your vehicle sells for more than $500, Indy Car Connect (benefiting Heritage for the Blind) will mail you IRS Form 1098-C within 30 days of the sale. Your deduction is the gross sale proceeds shown on that form, not Kelley Blue Book. If your vehicle is worth $500 or less, you’ll receive a written acknowledgment and may deduct up to $500 or the fair market value, whichever is lower. To use the deduction, you must itemize on Schedule A of your federal return and should keep your pickup confirmation as proof of your donation date. Always consult a tax professional for advice about your specific situation.

Indy Car Connect makes year-end giving easy across the Indy Metro—whether you’re in Broad Ripple, Irvington, Fountain Square, Lawrence, Speedway, Greenwood, Carmel, Fishers, Avon, or Westfield. We offer free pickup, even for non-running vehicles, usually with Monday–Saturday dispatch. No inspection or repairs are needed. You complete a quick online form or call, we schedule your tow, and Heritage for the Blind—a real 501(c)(3) charity (EIN 58-2164446)—receives the proceeds to support programs for people who are blind or visually impaired.

Your year-end donation timeline

Start before December 31

2 minutes

Go online or call Indy Car Connect in the Indy Metro. As long as you submit your donation and lock in your pickup for a date on or before December 31, that donation generally counts for this tax year, based on the pickup confirmation date.

Share basic vehicle and contact info

2 minutes

Provide your car’s make, model, approximate condition, and the Indianapolis-area location—whether it’s in Meridian-Kessler, Castleton, Pike Township, Speedway, or Greenwood. You don’t need to repair or clean the vehicle; non-running cars are welcome.

Confirm your free pickup time

5 minutes

Our towing partner works with you to choose a pickup window, usually Monday–Saturday, at your home, work, or storage lot anywhere in the Indy Metro. You’ll receive a confirmation—keep this as proof of your donation date for your records.

Sign over the title at pickup

10 minutes

When the tow truck arrives in Indianapolis or any nearby suburb, you hand over the keys (if available) and sign the title. The driver gives you a simple pickup receipt, which you should save with your tax documents as initial proof of the donation.

Receive your tax paperwork by mail

Within weeks

After your vehicle is sold, Heritage for the Blind mails you either IRS Form 1098-C (for vehicles over $500) or a written acknowledgment (for $500 or less), typically within 30 days of the sale. Use this to support your deduction when you file your return.

Year-end tax deduction facts

Deduction equals actual sale price

For vehicles that sell for more than $500, the IRS generally limits your deduction to the car’s gross sale price—not Kelley Blue Book or an estimate. That amount is clearly listed on the Form 1098-C you receive after the vehicle is sold.

IRS Form 1098-C for vehicles over $500

If your donated vehicle sells for more than $500, Heritage for the Blind will send you IRS Form 1098-C within 30 days of the sale. This official form documents the sale price and is what you use to substantiate your deduction with the IRS.

Written acknowledgment at $500 or less

When a donated vehicle is valued at $500 or less, you receive a written acknowledgment instead of Form 1098-C. In that case, you may generally deduct up to $500 or the vehicle’s fair market value, whichever is lower, subject to IRS rules.

You must itemize on Schedule A

To claim a charitable car donation deduction, you have to itemize deductions using Schedule A on your federal tax return. If you take the standard deduction, you typically cannot also claim a separate deduction for your vehicle donation.

December 31 controls the tax year

Your donation counts for the year in which you transfer the vehicle—generally the pickup/transfer date, not the sale date. Donate in the Indy Metro by December 31, keep your pickup receipt, and consult your tax professional when filing your return.

FAQ

If I donate my car in Indianapolis on December 31, does it count for this tax year?

Yes, in most cases your donation counts for the tax year in which you transfer the vehicle to the charity or its agent. That’s typically the pickup date, not the later sale date. As long as your car is picked up and the title is signed over by December 31, it should apply to this year. Keep your pickup confirmation and talk with your tax professional when you file.

How is my car donation deduction calculated if I donate through Indy Car Connect?

If your vehicle sells for more than $500, your deduction is generally limited to the actual gross sale price shown on IRS Form 1098-C—not Kelley Blue Book. If the vehicle is valued at $500 or less, you may deduct up to $500 or the fair market value, whichever is lower, using the written acknowledgment you receive. Always confirm how these rules apply to you with a tax advisor.

When will I get IRS Form 1098-C or other tax paperwork?

After your vehicle is picked up in the Indianapolis area, it’s processed and sold. For vehicles selling above $500, Heritage for the Blind mails IRS Form 1098-C within 30 days of the sale. If your car is $500 or under, you’ll receive a written acknowledgment instead. Keep this with your tax records and use it when you prepare Schedule A if you’re itemizing deductions.

Can I claim a car donation if I don’t itemize my deductions?

Generally, no. The IRS requires you to itemize on Schedule A to claim a charitable contribution deduction for a vehicle donation. If you take the standard deduction, you typically cannot claim an additional deduction for your car. Because tax laws and thresholds can change, it’s wise to speak with a tax professional about whether itemizing makes sense for you this year.

What proof do I need for my year-end car donation?

You should keep three things: your pickup confirmation or tow receipt showing the date your vehicle was transferred, the signed title copy, and the tax document mailed to you (Form 1098-C or written acknowledgment). Together, these support the timing and amount of your donation. Store them with your other tax records and provide them to your preparer or CPA when completing your return.

Does my car need to run or pass an inspection to qualify?

No. Indy Car Connect accepts most vehicles in the Indy Metro, running or not. No emissions test, mechanical inspection, or repairs are required. We arrange free towing from your driveway, garage, or lot in areas like Broad Ripple, Carmel, Lawrence, or Greenwood. The vehicle will be assessed and sold after pickup; that sale result is what determines your potential deduction under IRS rules.

Who is the charity and how are the proceeds used?

Your donation benefits Heritage for the Blind, a real 501(c)(3) nonprofit (EIN 58-2164446). Proceeds from your vehicle help fund programs and services for people who are blind or visually impaired. Indy Car Connect handles the logistics in and around Indianapolis so your car can be sold efficiently, and Heritage for the Blind receives the net proceeds to support its mission.

Related donation guides

Donate Before Year-End

Donate your car before year-end →

December Deadline

December car donation deadline →

Before December 31