Do you know the difference between a tax DEDUCTION and a tax CREDIT? Neither did we.
A deduction cuts down on your TOTAL taxable income. So if you make 30K … and have 5K deduction . . . the government only taxes you on 25K.
A CREDIT counts against your total bill. So if you owe 25K in taxes . . . and have a 5K credit . . . you only write a check for 20K.
So why a tax lesson on a blog about good news? because Thursday marks the anniversary of the Oregon Cultural Arts Tax Credit. Donations to the Oregon Cultural Trust are tax credit worthy. So you can support great groups like the Portland Actor’s Conservatory and save big bucks come mid-April. For more info, check out this link.
