You are allowed to deduct the fair market value of items you donate to qualified charitable organizations. But you probably don't do a very good job of it because how on earth are you supposed to know the fair market value of that computer or bag of clothes?

If you're like most of us, you stuff a bunch of clothes into bags, drop them off at a collection center and claim a $100 deduction.

Guess what? Those clothes easily could have been worth $1,500 or more if you only knew how to value them.

The law does not allow the charity to set the value of an item. You -- the donor and taxpayer -- must do that. But how much should you claim?

If you overstate the value, you risk an audit, penalties and interest. If you underestimate, you will pay more taxes than you should. Here are some examples of what donated items are worth, assuming they're in "good" condition:

-- Women's dress: $13.

-- Men's suit: $35.

-- Boy's jeans: $8.

-- Girl's sneakers: $12.

-- Luggage set: $10.

-- Stuffed animal: $3.

See what I mean? It really can add up quickly.

Certified public accountant William R. Lewis of Certified Used Clothing Values Inc. has written a booklet called "MONEY For Your Used Clothing -- 2007 Tax Year" that comes to the rescue of uncertain taxpayers. The booklet lists values for more than 700 items of clothing and household goods commonly donated to charity.

The values are obtained from annual surveys of consignment and thrift shops, conforming to IRS requirements for donated items.

"MONEY For Your Used Clothing" is guaranteed in two ways:

-- If you itemize your tax return, Lewis guarantees you will reduce the taxes you owe or increase your tax refund by at least $250 or your money back.

-- If the IRS disallows the deduction, Certified Used Clothing Values Inc. will pay any interest or penalties.

Lewis estimates clients have saved more than $11 million in taxes that otherwise would have lined the pockets of Uncle Sam. Wow!

"MONEY For Your Used Clothing" also addresses recent tax law changes and guidelines for the tax return you must file by April 15, 2008. The booklet retails for $25. However, I've negotiated a discount with Bill Lewis for my "Everyday Cheapskate" readers: $20 plus shipping and handling.

Go to www.DebtProofLiving.com and click on "Bookstore," or call 1-800-550-3502 Monday through Friday from 9 a.m. to 5 p.m. PST. My staff will take your order and mail the booklet to you right away.

I can tell you from my own personal experience that you are going to love this booklet. It just feels good to give and to deduct my contributions with confidence.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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