Idaho State Tax Credit Ins and Outs

One of the unique things about giving to Idaho Youth Ranch is the tax credit the state of Idaho makes available to resident taxpayers who donate to our organization.

Many people get confused about the difference between tax deductions and tax credits and don’t realize they need not itemize their taxes to claim a tax credit for a gift to Idaho Youth Ranch. 

You may be familiar with a tax deduction that reduces the amount of your income subject to taxes, but to claim a tax deduction for charitable giving you have to itemize your taxes in most cases. 

Tax credits are much more beneficial to you because they directly reduce the amount of taxes you pay! In Idaho, for youth rehabilitation programs like Idaho Youth Ranch, there is a 50% tax credit for donations up to $400 if you file a joint return. Even better, you don’t have to itemize your taxes to claim the tax credit. For example, if you give a $400 donation to Idaho Youth Ranch and your Idaho state tax bill is $1,000, you could be eligible to claim a $200 credit on your joint return reducing your tax bill to $800.

We know many of our donors help Idaho’s most vulnerable youth regardless of the impact on their taxes. Even so, when you do your taxes in the coming months, make sure you claim your tax credit for your donations. While I’m not a tax professional and can’t give specific advice, I recommend asking your tax professional about this opportunity.

If you haven’t given yet this year, there is still time for you to make your gift in the calendar year. Get in touch if you have more questions about our programs.