Making a Tax Favored Gift

Idaho State Tax Credit

Donations to qualifying Idaho educational institutions are eligible for a 50% tax credit! This means that if you itemize your taxes, a donation to the NIC Foundation will enable you to get both the deductions on your state and federal returns plus a 50% tax credit.

Note: A tax credit is a reduction to your actual tax due!

  • Idaho Individuals may take up to 50% of a $1,000 gift (a tax credit of $500)
  • Idaho Married Couples may take up to 50% of a $2,000 gift (a tax credit of $1,000)
  • Idaho Corporations may take up to 50% of a $10,000 gift (a tax credit of $5,000)

 

How a $500 Gift Could Have a True Cost of $88

John and Sally Smith are an Idaho married couple that itemizes their taxes. Together they have a gross income of about $75,000 (25% tax bracket). They wish to donate $500 to the North Idaho College Foundation.

Their gift qualifies for:

$125 Federal Deduction + $37 State Deduction + $250 Idaho Tax Credit

Therefore:

Their $500 donation less $412 in deductions = a true cost of $88

View corresponding Idaho statute for charitable giving deductions

Major Gifts

To maximize your tax benefit when making a major gift, consider spreading larger gifts over time through a multi-year pledge. A gift of $10,000 given over five years will allow taxpayers like John and Sally to see an additional $4,000 in tax savings compared to a one-time gift.
*Example based on deductions available for a married couple in the 25% tax bracket who itemize their taxes. Your tax benefit is dependent on variables such as your income level and filing status. It is best to consult with your tax professional to develop the best plan for your personal situation. If you have questions, please contact us.