Take advantage of the Idaho Education tax credit with the VSF

As of January 2011, the state of Idaho has initiated a piece of legislation that will maximize your gifts to the VSF and allow you to make a multiyear commitment to Vandal Athletics. Idaho state legislation, enacted through Idaho Statute 63-3029A allows qualifying Idaho educational institutions like the University of Idaho a 50% tax credit to their donors.

• Idaho married couples may take up to 50% of a $2,000 gift ( a tax credit of $1,000)
• Idaho Individuals may take up to 50% of a $1,000 gift ( a tax credit of $500)
• Prior credits were $200 and $100 respectively
• Idaho corporations may take up to 50% of a $10,000 gift ( a tax credit of $5,000)

Here is an example of how a married couple can maximize their gift with this legislation:

Joe and Jane Vandal are an Idaho married couple who itemize their taxes. Together they have a taxable income of about $70,000 (25% tax bracket). They wish to donate $2,000 to the Vandal Scholarship Fund in 2012.

Their gift qualifies for: $500 Federal Deduction + $156 State Deduction + $1,000 Idaho Education Tax Credit.

With these deductions and the Idaho education tax credit, a $2,000 gift to University of Idaho has an actual cost to them of only $344!

• Example based on deductions available for a married couple in the 25% tax bracket who itemize their taxes. Your tax benefit is dependent on variables such as your income level and filing status. We urge you to consult with your tax professional to develop the best plan for your personal situation.

Married (Filing Jointly)	Gift to VSF	Single (Taxpayer)	Notes
$2,000.00		$2,000.00
$500.00	Federal Deduction	$500.00	Estimated 25% Federal Tax Bracket
$156.00	State Deduction	$156.00	Estimated 7.8% Idaho tax rate
$1,000.00	Idaho Tax Credit	$500.00	A tax credit is a reduction to the actual tax you owe or an increase in your refund!
$344.00	True Cost to You	$844.00

As you can see, the NET COST to you on a $2,000 donation to the VSF is only an estimated $344! Funding the VSF is the priority of Idaho Athletics mission and helps provide a world class education for our student athletes.

Here is another break down of the tax deductions and credits you may qualify for.

Donation to University of Idaho	Federal Deduction	State Deduction	Idaho Credit	Net Cost Per Year	These figures reflect the 2011 rates for a joint return of $40,000 taxable income and are based on the taxpayer who itemizes his or her personal deductions.
$60.00	$9.00	$4.00	$30.00	$17.00
$125.00	$19.00	$9.00	$63.00	$34.00
$250.00	$38.00	$19.00	$125.00	$68.00
$500.00	$75.00	$37.00	$250.00	$138.00
$1,000.00	$150.00	$74.00	$500.00	$276.00
$2,000.00	$300.00	$148.00	$1,000.00	$552.00

There are 402 Idaho student athletes whose tuition goes to the 9 various colleges within the University. Please consider increasing your giving to the VSF to take advantage of the increased Idaho tax credits. This legislation has also allowed us to change our season ticket pricing strategy. The cost of the season ticket price has dropped this year and we have had a corresponding increase to the required VSF scholarship donations. The benefits to this strategy will let you take advantage of the Idaho Education Tax credit, allowing you to save more money through a tax deductable donation.