Idaho Education Tax Credit

 

Help Bridge the Gap at St. Ignatius using the Idaho Education Tax Credit

In Parish Tuition: $4000

Actual Cost to Educate Each Child: $6500*

Cost Gap:  $2500

Using the Idaho Tax Credit, it doesn’t have to cost a lot to make a big difference at St. Ignatius Catholic School.

By making a donation to our General Fund, you can help bridge the gap between tuition cost and the actual cost to educate each student.  Please prayerfully consider giving to St. Ignatius Catholic School.  “For where your treasure is, there your heart will be also.” Matthew 6:21

How this works for you:

The Idaho Education Tax Credit lets you support Idaho Catholic Schools with dollars you would otherwise pay on your Idaho Income Tax Return.  And now, the State of Idaho has increased the tax credit fivefold!  Starting in 2015 and going through 2020 the State will CREDIT 50% of the first $500 for an individual or $1000 for a married couple filing jointly.

In addition, the normal charitable deduction permits you to deduct the amount of your contribution on your Federal Income Tax Return as well as on your State Income Tax Return.  (If you itemize your deductions)  Depending on your tax bracket and liability, your contribution to St. Ignatius could cost you very little.

The chart below shows examples of how the Idaho Education Tax Credit works based on the 35% marginal tax bracket and itemized taxpayer return.  You must have a large enough tax obligation to qualify.   Figures are estimates.  As always, we recommend discussing your specific tax situation with your tax advisor.

 

Joint Return Gift Amount

 

$250

$400

$1,000

$2,000

$5,000

Tax Benefit from itemizing deductions*

($87.50)

($140.00)

($350.00)

($700.00)

($1,750.00)

50% Idaho Education Credit

 

($125.00)

($200.00)

($500.00)

($1,000.00)

($1,000.00)

NET out of pocket cost of contribution

$37.50

$60.00

$150.00

$300.00

$2,250.00

                 

Single Return Gift Amount

 

$250

$400

$1,000

$2,000

$5,000

Tax Benefit from itemizing deductions*

($87.50)

($140.00)

($350.00)

($700.00)

($1,750.00)

50% Idaho Education Credit

 

($125.00)

($200.00)

($500.00)

($500.00)

($500.00)

NET out of pocket cost of contribution

$37.50

$60.00

$150.00

$800.00

$2,750.00

                 

Corporate Gift Amount

 

$10,000

 

Gold Box=Where your gift maximizes the tax credit

Tax Benefit from itemizing deductions*

($3,500.00)

       

50% Idaho Education Credit

 

($5,000.00)

       

NET out of pocket cost of contribution

$1,500.00

       
                 
  • FIGURES ARE BASED ON A 35% TAX RATE. ITEMIZED TAX CREDIT RATES VARY ACCORDING TO THE TAX STATUS OF EACH INDIVIDUAL. PLEASE CONSULT YOUR TAX ADVISOR, OR CURRENT TAX TABLES, FOR THE TAX BENEFITS THAT APPLY TO YOUR CIRCUMSTANCES.

 

*Estimated cost based on 3-year projected budget