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.