The following information was paraphrased from the
2003 Idaho State Tax Commission Individual Income
Tax Instruction Guide for Forms 39 and 40
CREDIT FOR CONTRIBUTIONS TO IDAHO YOUTH AND REHABILITATION FACILITIES
MFJ $400 contribution potentially maximizes $200 credit
H of H or Single $ 200 contribution potentially maximizes $100 credit
If you donated cash or goods to a qualified center for independent living, to a youth or rehabilitation facility or its foundation, or to a nonprofit substance abuse center licensed by the Idaho Department of Health and welfare, you may claim a tax credit.
Your credit is limited to the smallest of:
one-half of the amount donated,
20% of the tax liability taken from the Idaho tax table or rate schedule
$100 ($200 on a joint return)
The qualified youth or rehabilitation facilities and their foundations are:
Anchor House, Coeur d Alene
The Arc, Inc., Boise
The Children's Home Society of Idaho, Inc., Boise
Dawn Enterprises, Inc., Blackfoot
Development Workshop, Inc., Idaho Falls
Gem Youth Services, Inc. Emmett
High Reachers, Inc., Mountain Home
Hope House, Inc., Nampa
Idaho Elks Rehabilitation Hospital, Inc., Boise
Idaho Youth Ranch
Kinderhaven, Sandpoint
Magic Valley Rehabilitation Services, Inc., Twin Falls
New Day Products, Inc., Pocatello
Northwest (North Idaho) Children s Home, Inc.
Opportunities Unlimited, Inc., Lewiston
Panhandle Special Needs, Inc., Sandpoint
Transitional Employment Services for the Handicapped, Coeur d Alene
Western Idaho Training Co., Inc., Caldwell
Winchester Occupational Workshop, Winchester
The following are the qualified centers for independent living:
Disability Action Center Northwest, Moscow and Coeur d'Alene
Living Independence Network Corporation, Boise and Twin Falls
Living Independently For Everyone, Blackfoot, Idaho Falls and Pocatello
CREDIT FOR CONTRIBUTIONS TO IDAHO EDUCATIONAL ENTITIES
MFJ $400 contribution potentially maximizes $200 credit
H of H or Single $ 200 contribution potentially maximizes $100 credit
If you donated cash or goods to qualified educational entities, you may claim a tax credit. Your credit is limited to the smallest of:
one-half of the amount donated,
20% of the tax liability taken from the Idaho tax table or rate schedule
$100 ($200 on a joint return)
A qualified educational entity includes:
a nonprofit corporation, fund, foundation, research park, trust, or association organized and operated exclusively for the benefit of Idaho colleges and universities
a nonprofit, private or public Idaho school (elementary, secondary or higher education)or its foundation
Idaho education public broadcast system foundations
the Idaho State Historical Society or its foundation
an Idaho public library or its foundation
an Idaho library district or its foundation
an Idaho public or private nonprofit museum
the Idaho State Library
INSULATION OF AN IDAHO RESIDENCE
To qualify for this deduction, your Idaho home must have existed, been under construction, or had a building permit issued on or before January 1,1976.The insulation must be in addition to any existing insulation and may not be a replacement. Insulation means any material commonly used in the building industry and installed to retard the passage of heat into or out of a building, such as fiberglass, rock wool, weather stripping, double-pane windows, storm doors and storm windows. Insulated siding does not qualify unless the cost of the siding and the insulating material is separately stated, in which case the cost of the insulating material alone qualifies. The amount charged for labor to install the insulation is also deductible.
ALTERNATIVE ENERGY DEVICE DEDUCTION
If you install an alternative energy device in your Idaho residence, you may deduct a portion of the amount actually paid or accrued (billed but not paid).Qualifying devices include:
A system using solar radiation, wind or geothermal resource primarily to provide heating or cooling, or produce electrical power, or any combination
A fluid-to-air heat pump operating on a fluid reservoir heated by solar radiation or geothermal resource but not an air-to-air heat
pump unless it uses geothermal resources as part of the system
A natural gas or propane heating unit that replaces a non-certified wood stove
An Environmental Protection Agency (EPA)certified wood stove or pellet stove meeting the most current industry and state standards that replaces a non-certified wood stove. A non-certified wood stove is a wood stove that does not meet the most current EPA standards. The non-certified wood stove must be taken to a site authorized by the Division of Environmental Quality (DEQ)within 30 days from the date of purchase of the qualifying. The natural gas or propane heating unit, the EPA-certified wood stove, or pellet stove must be installed the same tax year that the non-qualifying wood stove is turned in to the DEQ. In the year the device is placed in service, you can deduct 40%of the cost to construct, reconstruct, remodel, install or acquire the device, but not more than $5,000.
In the next three years after installation, you can deduct 20% of these costs per year, but not more than $5,000 in any year.
IDAHO MEDICAL SAVINGS ACCOUNT CONTRIBUTIONS AND INTEREST
You may contribute up to $2,000 ($4,000 if married)to an Idaho medical savings account and deduct the contribution. Deductible contributions do not include reimbursements that were redeposited into your Idaho medical savings account. Do not include amounts deducted for Archer MSAs on federal form 1040. An Idaho medical savings account is generally established with a bank, savings and loan, or credit union. The account is established to pay eligible medical expenses of the account holder and the account holder's dependents. Interest earned may or may or may not be deductible. Consult a tax advisor for additional information.
IDAHO COLLEGE SAVINGS PROGRAM
You may contribute up to $4,000 ($8,000 if married filing a joint return)per year to a qualified Idaho college savings program and deduct the contribution. The account must be established with TIAA-CREF Tuition Financing, Inc. The account owner and beneficiary will be designated at the time the account
is established. The account owner will have the right to make withdrawals for payment of higher education expenses for the beneficiary. A nonqualified withdrawal will result in a penalty up to 10%of the withdrawal amount. The person that withdraws the funds must report the withdrawal amounts as income in accordance with Internal Revenue Code Section 529. Additional information can be obtained at www.idsaves.org or by calling (866)433-2533.
HEALTH INSURANCE PREMIUMS
Deduct premiums you paid for health insurance for yourself, your spouse, and your dependents if those premiums have not already been deducted or excluded from your income. If you claimed a deduction for health insurance premiums on your federal Form 1040,Schedule A, calculate the health insurance premiums allowed as a deduction by using the worksheet on page 20. If you take money out of your Idaho medical savings account to pay medical insurance premiums, no deduction is allowed. Since the health insurance costs are already deducted or accounted for, they cannot be deducted a second time.
MAINTAINING A HOME FOR AGED AND/OR DEVELOPMENTALLY DISABLED
You may deduct $1,000 for each family member, not including yourself or your spouse, who is age 65 or older and for whom you maintain a household and provide more than one-half of his support for the year. You may deduct $1,000 for each family member, including yourself and your spouse, who is developmentally disabled and for whom you maintain a household and provide more than one-half of his support for the year. No more than three deductions of $1,000 are allowed. If you claim this deduction, you cannot also claim the $100 credit.
Developmental disability means a chronic disability which:
1. Is attributable to an impairment such as:
Mental retardation
Cerebral palsy
Epilepsy
Autism
Other condition found to be closely related to, or similar to, one of these impairments; and
2. Results in substantial functional limitation in three or more of the following areas of life activity:
Self-care
Receptive and expressive language
Learning
Mobility
Self-direction
Capacity or independent living
Economic self-sufficiency; and
3. Reflects the need for a combination and sequence of special, interdisciplinary or generic care, treatment or other services which are of lifelong or extended duration and individually planned and coordinated. If the home was maintained for the family member for less than a full year, the deduction is allowed at the rate of $83.33 for each month the home was maintained. A family member is any person who meets the relationship test to be claimed as a dependent on income tax returns. Refer to the federal Form 1040 instructions for more information on dependents. Maintaining a household means paying more than one-half the expenses incurred for the benefit of all the households occupants. Social Security benefits are not support provided by you but must be included in the computation of total support provided. Some examples of expenses of maintaining a household include: property taxes, mortgage interest, rent, utility charges, upkeep and repairs, property insurance and food consumed on the premises.