Idaho Education Tax Credit

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Idaho Education Tax Credit

Giving $1,000 to NNU could only cost you $500. Many of our Idaho residents are surprised to learn that the state provides an income tax credit to those who give to NNU. In fact, the law allows Idaho taxpayers to claim a credit worth 50% of the gift—up to $500 for single filers, $1,000 for those married filing jointly, and $5,000 for corporations. Regardless of whether you itemize your deductions or take the standard deduction, all Idaho taxpayers are eligible for the Idaho Education Tax Credit. 

  • Idaho individuals receive up to a $500 credit on their Idaho income taxes for making a gift of $1,000 or more (limited to 50% of Idaho income tax due).
  • Idaho married couples receive up to a $1,000 credit on their Idaho income taxes for making a gift of $2,000 or more (limited to 50% of Idaho income tax due).
  • Idaho corporations receive up to a $5,000 credit on their Idaho income taxes for making a gift of $10,000 or more (limited to 10% of Idaho income tax due).  

Certain limitations may apply. Please consult your tax advisor for advice regarding your specific tax situation or call 208-467-8423 for general questions.


Example A

Joe and Sally live and work in Idaho and are currently in the 25% federal income tax rate and the 7.8% Idaho state income tax rate. While Joe and Sally don’t have to itemize their deductions to take advantage of the Idaho Education Tax Credit, they have enough other deductions to do so. Because they believe strongly in supporting NNU annually, they make a $2,000 gift to the University Fund.

Gift to NNU  $2,000
Federal tax deduction $500
State tax deduction $156
Idaho tax credit  $1,000
Total Cost of Gift $344

Example B

Idaho Business Inc. (IBI) has $660,000 of taxable income in 2011, which puts them in the 34% federal income tax rate and the 7.6% Idaho state income tax rate. Wanting to support the current University Fund campaign, IBI makes a $10,000 gift before 
December 31.

Gift to NNU  $10,000
Federal tax deduction $3,400
State tax deduction $760
Idaho tax credit  $5,000
Total Cost to IBI $840