To maximize your tax savings, check your eligibility for Idaho tax credits.

  • Tax credits directly reduce your tax bill dollar for dollar
  • While deductions reduce your taxable income and therefore save money in proportion to your tax rate

Refundable credits vs. non-refundable

  • Refundable credits are even more valuable, as you can receive the credit even if it’s beyond the amount of taxes that you owe.
  • Non-refundable credits are good only up to the total limit of taxes that you owe.

Earned income tax credit (EITC)

Not only is it a refundable tax credit, it is also the only credit that can be claimed when using Form 1040EZ.

To claim the EITC, you must be:

  • S. citizen
  • Or resident alien with some earned income
  • Have a social security number
  • Investment income of less than $3,450 for the year
  • You can’t claim the EITC under married filing separately status

Child tax credit

With the recent Tax Cuts and Jobs Act the child tax credit doubled to $2,000 through 2025 to partially offset the loss of personal exemptions.

Non-child dependent credit

A new $500 non-refundable credit covers dependents who don’t qualify for the child tax credit, such as:

  • Children who are age 17 and older
  • In college
  • Or dependents with other relationships such as elderly parents

Child and dependent care Idaho tax credit

You can claim up to $3,000 in expenses for a single qualifying child/dependent and $6,000 for two or more. This tax credit will cover between 20 percent and 35 percent of your allowable care expenses based on income.

  • There is no phaseout limit.