Idaho Tax Education Credit
Donations to Idaho State University Foundation may be eligible for a 50% tax credit.
The 2018 Tax Cuts and Jobs Act (TCJA) made significant changes to tax laws that will impact all filers. Some changes included in the TCJA are:
- Elimination of the personal and dependency exemptions
- An increase in the child tax credit
- An increase in the standard deduction
- Limits on certain itemized deductions, such as taxes and mortgage interest
- Changes to charitable contribution limits
Donations to Idaho State University Foundation remain eligible for inclusion as an itemized deduction. For taxpayers who itemize, the limit on charitable contributions is now 60% of adjusted gross income, a 10% increase from the prior 50% limit.
Donations to Idaho State University Foundation also remain eligible for the Idaho tax credit for donations to educational entities. The credit amounts are:
- Idaho individuals - credit up to 50% of a gift of $1,000 (a maximum tax credit of $500)
- Idaho married couples - credit up to 50% of a gift of $2,000 (a maximum tax credit of $1,000)
The TCJA requires taxpayers to reduce a charitable deduction by the amount of any state tax credit they received for the donation. For an Idaho couple filing jointly, a gift of $2,000 to Idaho State University Foundation will result in a $1,000 Idaho tax credit and and potential itemized deduction of $1,000 (the $2,000 gift less the $1,000 tax credit).
Though experts agree that fewer people will choose to itemize deductions given the increased standard deduction and the limits on certain itemized deductions, gifts to Idaho State University Foundation are still a great way to do something good and save a little on taxes too!
To learn how your gift will benefit your tax situation, please contact your tax adviser. To learn how your gift will make a lasting difference to our students, contact us! We are ready to help you make a difference.
Reference the State of Idaho Statute for additional information.