Another One Bytes the Dust

Unlike a human-to-human friendship, one way to say goodbye to your old friend is to take a sledgehammer to it. But you can probably do better than that. Many charities will gladly take your old computer, which not only will give you the warm fuzzies for doing good (both for the charity, and also for the environment) — bit it could also give you a nice little tax break to boot.

Here's how to get it done right:

Reuse or Recycle?
Thanks to the fast pace of technology, many old computers simply aren't worth enough to consider donating.

If you aren't sure whether your computer still has some life in it, check with the manufacturer (see chart below), advises Kate Krebs, executive director of the National Recycling Coalition. IBM has a general return program, and will sort out for itself whether your item is fit to donate or should be sent to the scrap heap. Dell, on the other hand, offers extensive guidelines to help you figure out what to do with your hardware.

Cleaning the Hard Drive
No matter where you computer is headed — to the recycling bin or to a charity — it's important to remove your personal information before it leaves your hands. And a simple "delete" isn't enough. Someone with computer knowledge can easily restore your files and check out everything you didn't want seen.

"Reformatting the hard drive won't do it," says Beth Givens, director of the Privacy Rights Clearinghouse, a consumer advocate. "Use a more in-depth program that over-writes it several times with zeros and ones." For a no-cost solution, check out Eraser 5.7, a free download with high ratings from CNET, an electronic review site.

Pick the Right Charity
Not every charity wants your computer. But don't worry — there are plenty that specialize in computer donations, including:

Of course, in order to get the tax deduction, you'll also want to make sure that the charity you choose is registered as a 501(c)(3) with the IRS. (For more tips on how to select the right one, see Make the Most of Your Charitable Donation.) No matter how much your dinosaur of a desktop is worth, you'll need a receipt from the charity acknowledging your gift, as well as its estimated dollar value. If it's valued at $500 or more, you'll also need to fill out Form 8283 come tax time.

Keep in mind, your computer may not be worth all that much. Most charities will help you appraise the computer's worth. To get your own estimate, input your computer specifics in this worksheet from eDeal.

You May Pay to Recycle
Oftentimes, you'll pay a small fee to recycle your hardware, but it's a more environmentally friendly option than kicking your computer to the curb — literally.

The ideal time to recycle your computer is when you're purchasing new equipment, says Krebs. Paired with a purchase, many manufacturers offer incentives such as free shipping and processing, or a discount for your next purchase.

Here's a rundown of the major computer manufacturers' programs: