Donation Tax Facts

Donating clothing, shoes and other possessions not only benefits others, it can also benefit you. If you itemize on your income taxes, you can deduct the fair market value of the clothing you've donated [source: Goodwill].

What Clothes Should I Keep?

Deciding which clothes to keep, which to donate and which to toss can be an emotional process. What should you do with that t-shirt from middle school gym class? What about that sweatshirt from your senior year of high school with everyone's name on it? It can be tough to part with sentimental clothing. If you need to keep a few things from your past, by all means, do so. But if the items in this pile number more than five, consider tossing a few things to get the number down. Purging can also be a liberating process -- getting rid of items from your past can also make it easier to look forward to your future.

One way to sort is to keep only those clothes that you've worn in the past 12-18 months. If items have not been worn during this time, donate or trash them, because it isn't likely that you'll wear them again. Try on any pieces that may not fit, and take an honest look at yourself in the mirror. Do you like the way the clothes fit? If you do and you believe you will wear them again soon, then keep them. If they fit poorly or are out of style but in good condition, donate them so someone else can get some use out of them.

Don't forget to choose an organizational strategy for the clothes you decide to keep. Consider purchasing or making drawer dividers for your underwear and sock drawer. Divide the drawer into sections based on your needs. Possible sections include a sock section, pajama section and underwear section. Using dividers can keep your drawers neater by designating space for each type of clothing [source: Good Housekeeping]. Keep clothing of the same type together, too. Put all your cotton knit tops in one drawer, bulky sweaters in another and your jeans and pants in another. You can even designate a drawer -- or part of one -- for work out clothing if you have enough of it.

There are multiple possibilities for organizing your closet with the clothes you decide to keep. You can hang clothing based on length or color. You could coordinate matching pieces and hang outfits together, or plan your closet based on your work week and your weekend. Choose a method that works well for your lifestyle.

Once your clothes are organized, you'll need a place to put the seasonal pieces you aren't using currently. Read on to learn a simple, streamlined process for storing your seasonal clothes.