What To Do With Unwanted Christmas Gifts (And How To Turn Them Into Cash)

According to a Bankrate survey, 43% of Americans have at least one unused gift card, voucher, or store credit, and the average unused amount is $244. Add the sweater that doesn't fit and the gadget you already own, and most households end the holidays with a pile of stuff nobody asked for. The good news: almost all of it can be returned, regifted, sold, or donated, and some of it can turn into real cash for January bills.

If you're tired of giving and getting "stuff," consider giving the gift of stock next year. For this year's pile, here's what to do, starting with the options that take the least effort.

Return The Unwanted Christmas Gifts

Returning a gift is the fastest way to get value back, as long as you know where it came from. Most big retailers extend their return windows for holiday purchases, and Consumer World publishes an annual survey of major retailer return policies in one place, which it posted on December 15, 2025, for that season. Check it before you drive anywhere, because policies differ on receipts, opened electronics, and restocking fees, the same way hidden fees eat into your budget everywhere else.

A gift receipt makes this easy. For Amazon gifts, you don't need the buyer's account: use the 17-digit order number on the packing slip or digital gift receipt to start the return, and the refund goes to you as an Amazon gift card (Amazon). In 2025, Amazon accepted holiday-season returns through January 31 (January 15 for Apple products). Check the 2026 dates on Amazon's returns page, and use cash back sites the next time you shop there.

No receipt usually means store credit, often at the item's lowest recent selling price, and some stores cap how many receipt-less returns you can make. If all you'll get is a gift card to a store you never visit, keep reading: that card is easier to sell than the item itself, and TCI has covered where people buy discounted gift cards, which is exactly who buys yours.

Regift It

Regifting is free, takes no listing or shipping, and is fine as long as the item is new, in its original packaging, and going to someone who'll actually use it. Keep a note of who gave you what so it never goes back to the same circle, and leave out personalized or obviously used items. A regift is also an easy way to cut next year's holiday spending without anyone noticing.

Sell The Unwanted Gift Cards

Before selling a gift card, try to use it. A card for a store you'd shop at anyway is worth 100% of face value, and you can spend it on things already in your budget, like groceries, gas, or household basics, and move that cash to savings. A prepaid card branded Visa or Mastercard works almost anywhere, so it rarely needs selling.

Federal rules say gift card money can't expire for at least five years from purchase, and inactivity fees can only start after a year of no use (FTC), so there's no rush. Some states go further: California requires stores to give cash back on request for balances under $15 as of April 1, 2026, up from $10 (Ballard Spahr). Check the exact balance before you sell, because exchanges price partial balances the same way discount gift card sites do.

If you'll never use it, sell it for cash. Our favorite place to sell unwanted gift cards is still CardCash, which pays up to 92% of face value depending on the retailer, according to CNBC Select (October 2, 2026). CNBC's examples: $77 for a $100 Apple card and $80 for a $100 Best Buy card.

You can take the payout by PayPal or ACH, or trade for a gift card you'll actually use for a higher rate. It's the same math as buying discounted gift cards, from the seller's side.

Compare offers before you sell. GCX (The Gift Card Exchange) pays up to 85 cents on the dollar after a 15% commission, Prepaid2Cash buys Visa and Mastercard gift cards between $25 and $1,000 for 85% to 90% of the balance, and Buy Back World buys cards from more than 400 retailers and pays by check, PayPal, or direct deposit. The few minutes of comparison count the same as any other quick side hustle.

Sell only through an established exchange. Posting a gift card on social media or giving the card number to a private buyer is how people lose the whole balance, and gift cards are a favorite tool of payment scammers for exactly that reason.

Sell The Unwanted Gifts

If you can't return a gift, sell it. The right platform depends on what it is: electronics and collectibles do best on eBay, books and movies on Amazon, clothes on Poshmark or Mercari, and anything heavy or bulky on Facebook Marketplace, where local pickup costs nothing. Our list of Craigslist alternatives covers more options.

Fees are lower than most people expect on some sites and higher on others. eBay charges 13.6% on most categories plus $0.30 or $0.40 per order, and pays straight to your checking account or debit card, no PayPal required (eBay fees; eBay payouts). Selling on Amazon as an individual costs $0.99 per item plus a referral fee of 5% to 45% depending on the category (Amazon).

For clothes, Poshmark takes a flat $2.95 on sales under $15 and 20% at $15 or more, and Mercari takes 10% of the item price, according to Underpriced's 2026 fee comparison. Facebook Marketplace charges nothing on local pickup and 10% on shipped items. Our post on selling used clothes for cash has more on pricing apparel.

Before you list, search each site's sold listings, not active ones, for the same item in the same condition. That's the real market price. Then subtract fees and shipping, and if the number is small, a quick local sale beats a week of messages. TCI's list of ways to make money from home covers more ways to turn clutter into cash.

What About Homemade Stuff?

A knickknack or handmade gift is hard to sell online unless it's a collectible or a recognizable craft. If it's genuinely well made, a local craft fair or a craft selling platform is worth a try. Otherwise, the best bet is in person.

A spring garage sale is still the easiest way to move these. You'd be surprised how well odd items sell to the right buyer, and clearing out the year's clutter early leaves room to get the new year's budget off to a clean start.

Do You Owe Taxes On Gifts You Sell?

Probably not. If you sell a gift for less than it cost, there's no gain to tax, and the IRS says a loss on the sale of a personal item isn't deductible either (IRS). Selling at a profit is different: that gain is taxable income, whether or not you get a form. Our explainer on getting a 1099-K when you don't run a business walks through the reporting.

Most casual sellers won't get a Form 1099-K. Platforms only have to send one when your payments top $20,000 and 200 transactions in a year, the threshold restored by the One Big Beautiful Bill Act (IRS via CPA Practice Advisor). If you do get one for personal items sold at a loss, the IRS has you report the proceeds and an offsetting adjustment on Schedule 1 so it nets to zero. If selling turns into a regular habit, read up on taxes for your side hustle.

Donations

Clothes, toys, and household items can do real good at a local charity, and it beats letting them collect dust. Just know how the charitable contribution rules work in 2026 before counting on a write-off.

Donated goods are only deductible if you itemize deductions. Starting with the 2026 tax year, people who take the standard deduction can deduct up to $1,000 ($2,000 married filing jointly) in charitable gifts, but only cash gifts count, not clothing or other property (NATP). Itemizers now lose the first 0.5% of adjusted gross income in charitable deductions, so someone with $100,000 of AGI gets no benefit from the first $500. Our breakdown of the standard deduction vs. itemizing shows which camp you're in.

If you itemize, get a receipt, keep a list of what you gave and its condition, and value it at thrift-store prices, not what the giver paid. Donations made by December 31 count on that year's return, which makes this one of the year-end moves that can save you on taxes.

Frequently Asked Questions

Can You Exchange A Gift Card For Cash?

Sometimes at the store, and almost always online. Some states, including California for balances under $15, require retailers to give cash back on small balances when you ask. For larger balances, gift card exchanges like CardCash, GCX, and Buy Back World pay 85% to 92% of face value. See where people buy discounted gift cards for the other side of that market.

Can You Return A Gift Without A Receipt?

Usually, but you'll get store credit, not cash, and often at the item's lowest recent price. Amazon gifts can be returned with the order number from the gift receipt or packing slip. Check Consumer World's annual return policy survey before you go, and treat the store credit like any other gift card you can sell.

Do I Have To Pay Taxes If I Sell My Christmas Gifts?

Not if you sell them for less than they cost, which is almost always the case with used gifts. Gains are taxable. Platforms only send a 1099-K above $20,000 and 200 transactions. Receiving the gift itself isn't taxable to you, since any gift tax is the giver's concern and only applies to very large gifts.

Can I Deduct Unwanted Gifts I Donate?

Only if you itemize. The new 2026 deduction for non-itemizers covers cash gifts to charity, up to $1,000 or $2,000 for married couples filing jointly, but not donated clothes, toys, or other goods. Our list of the most common tax deductions covers the rest.

Is It Rude To Regift?

Not if the item is new, unused, and a good fit for the person getting it. Don't regift within the same circle as the original giver, and skip personalized items. Regifting is one of the easiest ways to keep next year's holiday budget in check.

Final Thoughts

You don't have to feel stuck with unwanted Christmas gifts, and you shouldn't feel bad about letting them go. It's the thought that counts, but the bigger thought behind a gift is that the person receiving it actually wants it. Swapping it for something you'll use, even cold, hard cash, honors that. If the selling bug sticks, our best side hustles list has bigger ideas.

Have a plan for the money. If you put December on a credit card, send it there first, since card interest erases any resale profit fast, and our list of things to do to pay off debt can help. If you don't carry a balance, park the cash in one of the best high-yield savings accounts so it earns interest instead of disappearing.

Do you ever sell your unwanted Christmas gifts?