Employer tax credit

Employers who contribute to their employees’ IDeal – Idaho 529 College Savings Program accounts receive an Idaho state tax credit. The credit is 20% of the employer’s contribution, capped at $500 per employee per year.

Employer contributions to an employee’s 529 account count as additional income for the employee. Contributions appear as income on the employee’s W-2 and are subject to taxes and withholdings. Employees can deduct employer contributions made on their behalf from their Idaho state income tax.