TAX INCENTIVES
Legislation clarifies that contributions to nonprofit foundations, located in Idaho, qualify for additional tax credits.
This tax credit equals 50% of the contribution and is limited to a maximum of 50% of an individual taxpayer's total Idaho income tax liability. A tax credit should NOT be confused with a tax deduction. A credit translates to a credit towards what you would owe on your state income taxes. The maimum annual amount of the credit was increased from $100 ($200 on a joint return) to $500 ($1000 on a joint return).
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Idaho tax laws allow for a larger tax credit for donations to schools by any Idaho resident. Married couples may receive up to a $1,000 Idaho state tax credit. Corporations may receive up to a $5,000 Idaho state tax credit.
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Single Filing
Donation $1,000.00
Federal Tax Deduction $280.00
State Tax Deduction $78.00
State Tax Credit $500.00
Total Cost of Donation $142.00
Joint Filing
Donation $2,000.00
Federal Tax Deduction $560.00
State Tax Deduction $156.00
State Tax Credit $1,000.00
Total Cost of Donation $284.00
Corporate Filing
Donation $10,000.00
Federal Tax Deduction $3,500.00
State Tax Deduction $760.00
State Tax Credit $5,000.00
Total Cost of Donation $740.00
Examples are based on a single and married filing jointly tax bracket of 28% and a corporate tax rate of 35%. Consult your personal accountant or tax preparer for questions regarding your specific tax situation. Additional restrictions and credit limitations may apply.