Idaho Voluntary Contributions: Tax Credits and How to Claim Them
Idaho offers tax credits for voluntary contributions made to qualified organizations, allowing taxpayers to reduce their state income tax liability. These credits are available for donations to educational entities, youth and rehabilitation facilities, and other approved nonprofit organizations.
Eligible Organizations for Tax Credits
Taxpayers may claim credits for donations to the following:
- Qualified Idaho educational entities
- Centers for independent living
- Youth or rehabilitation facilities or their foundations
- Nonprofit substance abuse centers licensed by the Idaho Department of Health and Welfare
Credit for Idaho Educational Entity Contributions
Donors who contribute cash to qualified educational entities can claim a tax credit. The credit is limited to the smallest of the following:
- One-half of the amount donated
- 50% of the tax on Form 40, line 20 (or Form 43, line 42, depending on form version)
- $500 ($1,000 on a joint return)
- The tax on Form 40, line 20 less the amount on Form 40, line 21
Donations of goods or services do not qualify. Include any amounts from Form ID K-1, Part VIII, line 50 in your donation total.
Credit for Youth and Rehabilitation Facility Contributions
Donations to youth or rehabilitation facilities (or their foundations) may qualify for a credit. The credit is limited to the smallest of:
- One-half of the amount donated
- 20% of the tax on Form 43, line 42
- $100 ($200 on a joint return)
Include any amounts from Form ID K-1, Part VIII, line 51 in your donation total.
How to Claim Voluntary Contributions in Online Taxes Software
To add voluntary contributions when filing your Idaho state tax return using Online Taxes (OLT) software:
- From within your tax return, click on "State" in the left menu (or tap the three dots in the top-right corner for mobile devices).
- Select "Start or Revisit Idaho state."
- Navigate to the "Payments" section and locate the pages for Voluntary Contributions.
- Follow the on-screen instructions to enter your donation details.
Important Notes
- Cash donations only qualify for these credits; goods or services do not.
- Credits are applied against your Idaho state income tax liability.
- Ensure you have documentation for all donations, including Form ID K-1 if applicable.
Source:
Individual Income Tax guidelines.pdf
Form ID K-1.pdf
Form 43.pdf
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.