ID-529: Credit for Employer Contributions to Employee Idaho College Savings Account and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Form ID-529 calculates the Idaho income tax credit for employer contributions to employees’ Idaho college savings accounts. It reports contributions, available credits, pass-through amounts, the credit allowed for the current year, and any carryover to future years.
Who files this form
An employer who contributes directly to an employee’s 529 qualified state tuition program account can use Form ID-529 to claim a credit against the employer’s Idaho income taxes.
The form also accounts for credits passed through from an S corporation, partnership, trust, or estate, and unused credits carried over from prior years.
What you'll need
Have these details and tax forms available to complete Form ID-529:
- Your name as shown on your return and your Social Security number or EIN.
- Each employee/account owner’s name, SSN or ITIN, filing period, and contribution amount for page 2.
- Your Idaho income tax amount and the other credits listed in Part II. The instructions identify Form 40, line 20, or Form 43, line 42, as the source for the income tax amount.
- Form ID K-1, if you received a pass-through credit. The instructions refer to Part VII, line 45, or Part XI, line 69.
- Amounts of any prior-year credit carryover and any credit distributed to shareholders, partners, or beneficiaries.
- Form 44 to report the allowed credit and any carryover.
Common mistakes
- Applying this credit before other required credits. The instructions say the credits listed in Part II must be applied before the ID-529 credit.
- Treating the credit as refundable. The instructions state that it is nonrefundable.
- Carrying unused credit forward too long. The carryforward period is limited to five tax years.
- Putting carryover in the wrong place. Part III instructions say to enter unused credit on Form 44, Part I, line 9, in the Carryover column.
Questions people ask
How much is the credit?
An employer can claim 20% of the total contribution per employee, up to a maximum credit of $500 per employee.
Can I claim the full available credit this year?
The credit is limited to the Idaho income tax remaining after the other credits that must be applied first. Part II, line 18, uses the smaller of your total available credit or the tax remaining after those other credits.
What happens to credit I cannot use this year?
The credit is nonrefundable, but unused credit may be carried forward for up to five tax years. Report the carryover on Form 44, Part I, line 9, in the Carryover column.
Where do I enter a credit passed through to me?
Enter it in Part I, line 2. The instructions say this amount is reported on Form ID K-1, Part VII, line 45, or Part XI, line 69.