(prepared by the Oregon Department of Revenue and the Cultural Trust)

The following examples and chart provides guidance, individual tax circumstances may be different. These examples assumes a couple is filing jointly and is eligible for the maximum Cultural Trust tax credit of $1,000. A single file is eligible for a maximum of $500.

Itemizing Guidance (not including the Trust tax credit as a federal tax deduction)

If the joint filers are in the federal 32% rate and 9% rate for Oregon and donate a total of $1,000 to eligible cultural nonprofits, they are eligible to claim deductions for $320 tax savings on the federal return and $90 for state return. The taxpayers tax saving would be $410.

If the same taxpayers also contributed $1,000 to the Cultural Trust, and that amount is not claimed as a deduction on federal tax returns, the contribution is eligible for the Trust tax credit. The Oregon tax saving would be $1,000.

The total combined tax savings would be $1,410. The taxpayers gave a total of $2,000 to cultural nonprofits and the Trust and total cash outlay was only $590.

Standard Deduction Guidance (itemize deductions on the Oregon return only)

If the joint filers are in the federal 32% rate and 9% rate for Oregon and donate a total of $1,000 to eligible cultural nonprofits and do not itemize on their federal return they are not eligible to claim those contribution to cultural nonprofits as deductions on their federal return. There would be no tax savings for these donations if they are claiming the standard deduction. The contribution of $1,000 would be eligible as a deduction the Oregon tax return, the tax savings would be $90.

If the same taxpayers also contributed $1,000 to the Cultural Trust, and that amount is not claimed as a deduction on federal tax returns, the contribution is eligible for the Trust tax credit. The tax saving would be $1,000.

The total combined tax savings would be $1,090. The taxpayers gave a total of $2,000 to cultural nonprofits and the Trust and total cash outlay was only $910.

No Itemized Deduction on federal or state taxes

If the joint filers do not itemize on either federal or state taxes they may not claim the donations to cultural nonprofits on either tax returns. There would not be a tax savings.

If the same taxpayers also contributed $1,000 to the Cultural Trust, and that amount is not claimed as a deduction on federal or state tax returns, the contribution is eligible for the Trust tax credit. The tax saving would be $1,000.

The tax savings would be $1,000. The taxpayers gave a total of $2,000 to cultural nonprofits and the Trust and total cash outlay was only $1,000.

Exception

If your contribution to the Trust is above the maximum tax credit limit, you can claim the amount over the limit as a deduction on your state and federal returns as long as you itemize on both returns. For example: If you are eligible for a maximum $1,000 Trust tax credit and you donate $1,500 to the Trust, you can claim the $1,000 Trust tax credit and the over amount of $500 on your federal and Oregon tax returns.

Why doesn’t every Oregonian do this?

Most Oregonians don’t know about it, or think it’s complex to do. But making a matching contribution and claiming it on your tax return is very easy. Some might also forget to make their donation before Dec. 31.