Charity tax credit available even if you don’t itemize

Wednesday November 16, 2022

As 2022 draws to a close, don’t forget that you can take a credit on your Idaho income tax return for monetary contributions to certain Idaho charitable organizations. You can take this credit even if you don’t itemize.

The credit applies to contributions to the organizations below. Contributions are reduced by the value of anything you received in return such as food, entertainment, or merchandise.

• For C and S corporations, the law limits the yearly credit to the smallest of:
  • $5,000
  • 10% of total income tax or franchise tax owed for the year
  • 50% of the amount donated

• For all other businesses, individuals, and entities (such as estates and trusts), the law limits the yearly credit to the smallest of:
  • $500 per taxpayer ($1,000 total on a joint return for individuals)
  • 50% of total income tax (for example, the amount on Form 40, line 21, for Idaho resident individuals).
  • 50% of the amount donated

Organizations you can contribute to

The contributions must be to one or more of these Idaho organizations to count toward the credit:

• The Council for the Deaf and Hard of Hearing.
• The Commission for the Blind and Visually Impaired.
• The State Independent Living Council.
• The Developmental Disabilities Council.
• Nonprofit public or private institutions of elementary, secondary, or higher education or their foundations. The educational institution must be accredited.
• A nonprofit corporation, fund, foundation, trust, or association benefitting only accredited institutions of higher education. This includes a university-related research park.
• Accredited medical residency programs or their nonprofit support organizations devoted to training residents.
• Foundations for Idaho public-broadcasting systems such as Idaho Public Television.
• The Idaho STEM Action Center.
• The Commission on Hispanic Affairs.
• The Idaho Commission for Libraries, public libraries or their foundations, and library districts or their foundations.
• The Idaho State Historical Society or its foundation.
• Nonprofit public or private museums or their foundations. The museum must collect, preserve, and display objects of aesthetic, educational, or scientific value. It must be open to the public on a regular basis.
• Dedicated accounts with the Idaho Community Foundation that exclusively support the organizations listed above.

For questions about this credit, talk to your tax advisor or contact us.

Laws and Rules

Idaho Code section 63-3029A

Idaho  Income Tax Administrative Rule 705