Individual Development Accounts, or IDAs, are matched savings accounts that change the financial futures of qualifying Oregonians with lower incomes. When you donate to the Initiative, you receive a state tax credit that can be used to offset your Oregon income tax liability.
NEW: Donors can now choose their own tax credit rate – up to 90%. Why choose a lower tax credit rate? The lower the tax credit rate, the greater the impact of your contribution and the more you can claim as a charitable deduction on your federal return. Keep in mind, you may only claim the portion of your donation for which you do not receive a state tax credit. So, for example, if you choose a 90% state tax credit rate, you may claim 10% as a charitable contribution on your federal return. If you choose a 60% state tax credit rate, you may claim 40% as a charitable contribution on your federal return.
One thing that sets the IDA apart from other programs is the ability to contribute appreciated stock. For a taxpayer with highly appreciated stock, the overall tax savings can be significant.
Learn more about the IDA tax credit.
And be sure to consult with us if you have any questions about choosing a tax credit rate that best offsets your tax liability.