Making a Personal Tax-Favored Gift

When making a gift to the Lakeland Education Foundation, donors can receive a substantial tax advantage on their returns. Currently contributions made to the Lakeland Education Foundation are eligible for three tax saving deductions:

  • Idaho State Tax Credit
  • Idaho State Income Tax Reduction
  • Federal Income Tax Reduction

The examples below illustrate their benefits:

Married Filing Joint Tax Return

Deductible Gift

Federal Tax Savings

State Tax Savings

Idaho Tax Credit

Net Cost

$250

$63

$20

$125

$42

$500

$125

$39

$250

$86

$1,000

$250

$78

$500

$172

$5,000

$1,250

$390

$1,000

$2,360

$10,000

$2,500

$780

$1,000

$5,720

Single Tax Return

Deductible Gift

Federal Tax Savings

State Tax Savings

Idaho Tax Credit

Net Cost

$250

$63

$20

$125

$42

$500

$125

$39

$250

$86

$1,000

$250

$78

$500

$172

$5,000

$1,250

$390

$500

$2,860

$10,000

$2,500

$780

$500

$6,220

The examples above reflect the tax benefits for those in the 25% tax bracket who itemize their tax returns. The Idaho Tax Credit is limited to 50% of the taxpayer’s total Idaho income tax liability. Rates used in accordance with 2011 guidelines.  Please visit with your tax professional to develop the best plan for your personal situation.

State Tax Credit

Idaho taxpayers are entitled to claim a tax credit for all donations to qualifying Idaho educational institutions.  For single taxpayers a 50% credit with a maximum of $500 is allowed and for married tax payers the 50% credit stands to a maximum of $1,000.  Therefore, a $2,000 donation would maximize the annual state tax credit for a married couple and benefit them with a $1,000 credit.

Maximize Your Tax Credit

To maximize your tax benefit, consider spreading your gift through a multi-year pledge where payments are made on an annual basis.  A $10,000 gift over 5 years (Five annual payments of $2,000) will allow the traditional married taxpayer in the 25% tax bracket to experience an additional $4,000 of tax savings over time, as compared to a one-time gift.

Making a Business Tax-Favored Gift

Idaho corporations are entitled to claim an Idaho State Tax Credit on their contributions to the Lakeland Education Foundation.   Donors to the Lakeland Education Foundation are eligible for three tax saving deductions

  • Idaho State Tax Credit
  • Idaho State Income Tax Reduction
  • Federal Income Tax Reduction

The annual credit is limited to the smallest of:

  • One-half the amount donated
  • 10% of tax due on line 36 of your tax form
  • $5,000

The assumption below for ABC Corporation illustrates this benefit:

ABC Corporation
$1 Million in Sales
$100,000 in net profit

Deductible Gift Federal Tax Savings State Tax Savings Idaho Tax Credit Net Cost

$250

$88

$19

$125

$18

$500

$175

$38

$250

$37

$1,000

$350

$76

$500

$74

$5,000

$1,750

$380

$2,500

$370

$10,000

$3,500

$760

$5,000

$740

Sample scenario only, due to specific tax regulations each corporation will be subject to different deduction limitations. Please visit with a tax professional to develop the best plan for your situation. Rates used in accordance with 2011 guidelines.

Financial Discolsure info:

Financial summary information for the Lakeland Education Foundation is contained in its annual report. Other detailed information is to be found in its IRS form 990 and associated statements and schedules. The Education Foundation was incorporated in 2007 as a non-profit, tax-exempt corporation under Section 501(c)(3) of the IRS code. A letter verifying the tax-exempt status of the Education Foundation can be obtained by contacting us at: info(at)lakelandfoundation.org