Idaho Education Tax Credit for 2011

Donations to qualifying Idaho educational institutions like the Teton Valley Education Foundation are eligible for a 50% tax credit — a reduction in the actual tax you owe. If you itemize your taxes, a donation to TVEF will enable you to get income tax deductions on both your state and federal returns, plus a 50% Idaho income tax credit. For 2011 the allowed credit has been increased for both personal and business gifts.

Idaho individuals may take up to 50% of a gift of $1,000 (a tax credit of $500)
Idaho married couples may take up to 50% of a gift of $2,000 (a tax credit of $1,000)
Idaho corporations may take up to 50% of a gift of $10,000 (a tax credit of $5,000)

 

SAMPLE

Jerry and Jane Richards are an Idaho married couple who itemize their taxes. Together, their gross income is about $75,000 (which puts them in the 25% bracket). They decide to donate $500 to TVEF in 2011.

Their contribution qualifies for:
A $125 federal income tax deduction; plus
A $39 Idaho income tax deduction; plus
The $250 Idaho Education tax credit.
Taking the deductions and credit together, the Richards' $500 gift to TVEF has a true out-of-pocket "cost" of only $86.

Please note that your tax benefit is dependent on your personal income level and filing status, and we urge you to consult your financial advisors to develop the best contribution plan for your personal circumstances.