(Image credit: Getty Images)
It happens every year: the dreaded moment when you peel back the wrapping paper to reveal a gift that makes you second guess whether the giver put the right name on the tag. An estimated 53% of Americans received at least one unwanted gift last year, according to a 2024 report by Finder. That amounts to over $10 billion wasted on gifts the recipient didn’t want nationwide.
Whether it’s a kitchen gadget you don’t need, an item of clothing that isn’t quite your style or any other unwanted gift, how can you claw back some of that $10 billion spent on unwanted gifts so that the well-intentioned gift giver didn’t completely waste the money they spent?
Depending on what exactly you received, cashing in on the value of the gift might be as easy as returning it to the store for credit. In other cases, you might have to get a little creative — but there’s more than one way to make lemonade out of those lemons you got this year.
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Exchange the gift at the store
This is the easiest way to extract the full cash value out of any unwanted gifts you received this year. If the giver provided the receipt, exchanging it should be a straightforward process. Even without a receipt, some major retailers offer more generous return policies around the holidays, knowing that some recipients will be looking to return gifts without a receipt.
If you go this route, you’ll most likely only be able to get store credit for the gift rather than cold, hard cash. If it is from a major retailer like Target or Walmart, it should be easy enough to spend that credit on something you actually do want.
But if the gift is from a more niche boutique, your options might be more limited. If there’s nothing you would want for yourself, you may be able to use the store credit to find a gift for someone else. That way, you’ll get an extra early head start on next year’s holiday shopping.
Sell it on Facebook Marketplace or a similar online platform
If you can’t return the gift or you’d rather have cash than store credit, there’s always the option to sell it. With platforms like Facebook Marketplace, Offerup and others, it’s easier than ever to list the unwanted items in your home for sale.
With a brand new, unused item like your gift, you can get away with listing it for a price closer to its original value. But you should still discount it — no one is turning to Facebook Marketplace because they want to pay full price for an item.
To squeeze even more value out of that unwanted gift, stash the cash you earned from selling it in a high-yield savings account to earn a little extra interest on it. Even if it’s only a few bucks, every bit helps pad your emergency fund and increase your yields.
Use the tool below, powered by Bankrate, to find the right savings account for your holiday cash:
Donate it and claim the donation as a tax deduction
With just days left before the end of the year, you still have time to squeeze in any last-minute charitable donations to help lower your tax bill next year. Your unwanted holiday gifts can help with that.
When you donate items to places like Goodwill or other charitable organizations, you typically have the option of getting a receipt to confirm you made the donation you’re claiming on your tax return.
Since the item in question is likely new, the fair market value you’ll be able to claim will more or less be the price the giver paid. But make sure you understand how to claim charitable tax deductions before donating. While the rules are a little less strict for lower cash value items — which your unwanted gift likely is — there are still important IRS guidelines you need to follow.
Still, when done correctly, donating a gift to claim the tax deduction is a great way to extract most of the cash value out of the gift without having to exchange it for store credit.
(Image credit: Getty Images)
Regift it next year
Maybe the gift in question isn’t quite your thing, but someone’s bound to like it. While you won’t technically earn any cash or tax deductions with this method, you will have one less gift to buy next year, allowing your future holiday gift budget to stretch a little further. Those savings can come in handy amid rising prices.
If you do plan on regifting the item, tape a note to it now reminding you who gave it to you. You don’t want to accidentally regift it to the same person next year.
How to handle perishable gifts you don’t want
Sometimes, the unwanted gift in question is something edible. Maybe it’s a gift basket filled with snacks and candy you don’t like. Maybe it’s a thoughtful mix of homemade baked goods that don’t align with the new diet your doctor ordered.
While you won’t necessarily benefit financially from these perishable goods like you would other unwanted gifts, you can at least avoid wasting them. To start, ask around your social circle to see if anyone else would enjoy them. If there are no takers, call around to local food banks and soup kitchens to see if they would accept a donation of holiday treats.
