Form 41S Instructions – Additional Explanations

The instructions for line 43, Investment Tax Credit, should include the following additional information:

If you are claiming the investment tax credit and the credit for qualifying new employees, you must compute the credit limitations on Idaho Form 55. Enter the amount of investment tax credit allowed on line 7, Form 55 instead of using the amount computed on the Form 49.

The amount of investment tax credit allowed as computed on the Form 55 may be different from the amount computed on Form 49. If you claim the credit for qualifying new employees, all your credits are limited to 50% of your tax after deducting the credit for taxes paid to other states. If you do not claim the credit for qualifying new employees, this limitation does not apply.

The instructions for line 16, Other Income, should include the following additional information:

Enter any other income or loss required to be reported separately to shareholders from the federal Form 1120S, Schedule K, line 21.

The instructions for lines 21/31 - Other additions/Other subtractions, should include the following additional information:

If you have separately stated items that require an Idaho adjustment, include the amount of the Idaho adjustment as an other addition or an other subtraction.

The instructions for line 39 – S Corporation income Report to Idaho On Shareholders’ Income Tax Returns, should include the following additional information:

If lines 36 and 37 include separately stated amounts from lines 16, 21, and 31, include on line 39 the amounts reported by the shareholders on their Idaho income tax returns.