Take Credit Where Credit is Due
Donations to qualifying Idaho Educational Institutions are eligible for a 50% tax credit! This means that if you itemize your taxes, a donation will enable you to get both the deductions on your state and federal returns plus a 50% tax credit. In 2011, the maximum credit allowed was
increased considerably for both personal and business gifts. A tax credit is a reduction to your actual tax due to the State.
John and Sally are a married Idaho couple that itemizes their taxes. Together they have a gross income of about $75,000 which places them in the 25% tax bracket. If they make a donation to an eligible Idaho educational institution or public library, their gift qualifies
With the advantages of these deductions and credits, their $500 gift has a true cost of only $86. Making such a charitable gift is an excellent way to direct your tax dollars. In other words, you can pay $500 in taxes to the State, OR you can be out of pocket $86 and be certain that your $500 is going directly into the hands of your preferred cause(s).
Idaho public, private and nonprofit schools, colleges, universities, Idaho public libraries, EXCELFoundation, Idaho Public Television, and Idaho museums, are among institutions eligible for this tax credit.
Similarly, Idaho taxpayers are entitled to take a 50% tax credit for contributions (both cash and goods) to qualifying Idaho Youth Rehabilitation Facilities. Individuals can earn up to $100 in tax credits (for gifts of $200 and above); married couples filing jointly can earn up to $200 in tax credits (for gifts of $400 and above). State and federal tax deductions also apply.
Qualifying youth or rehabilitation facilities and their foundations include Anchor House, Children’s Village, Idaho Drug Free Youth, Idaho Youth Ranch, Project Safe Place, and TESH (Transitional Employment Services for the Handicapped).
Be sure you are taking advantage of this opportunity to reduce your taxes and control where your tax dollars are directed.