Welcome to the Winter 2020 issue of Tax Update—our newsletter for the business community. This edition features articles about office moves, sales tax and other instructions, updated guidance for payroll withholding, Form 967 filing changes, new classes for businesses, and more!
Boise, Pocatello offices have moved
Two of our offices moved to new addresses in 2019.
Our Boise office moved late last summer to 11321 W. Chinden Blvd., on the State of Idaho’s new Chinden Campus. The new location brings our headquarters closer to the center of the Treasure Valley’s population and helps us serve you more efficiently.
Last February, we moved our Pocatello field office to 1111 N. 8th Ave, a location that’s easier to find and offers more service windows at the front counter.
To find all our office locations and hours, please go online to tax.idaho.gov/visit.
Instructions for sales tax and other forms available online
We’re no longer mailing the following tax form instructions to account holders:
- Sales and use (Form 850, Form 852)
- Travel and convention (Form 1152)
- Greater Boise Auditorium District (Form 1250)
- E911 fee (Form 3950)
You can find these instructions online at Sales/Use. See the “Forms & Instructions” section.
Updated guidance for payroll withholding
Employers: Please encourage your employees to review their state and federal withholding to start the new year right. All employees should look at their tax withholding at least once a year, or more often to account for changes in their life.
Employees who update their withholding information and all new employees should complete two separate forms: the federal W-4 and the Idaho W‑4. The federal W‑4 no longer works for state withholding purposes.
If new employees don’t give you an Idaho W‑4, you must withhold state income tax from their pay at the “Single” rate with zero allowances.
Steps for employees to take:
- Use the withholding estimator at IRS.gov to estimate your federal withholding. Update the federal Form W-4 with that information.
- Use page 2 of the Form ID W-4 – Employee’s Withholding Allowance Certificate to estimate your Idaho withholding. Fill out Form ID W-4 with that information.
- Give both W-4 forms to your employer.
Employees can find links to Idaho and federal W-4 information at tax.idaho.gov/w4
Form 967 filing change
You’ll no longer receive paper Form 967s if you’re an employer who’s filed the form online through our Taxpayer Access Point (TAP) for the past two years. You’ll need to e-file your 967 return for 2019 through TAP.
Any 1099 forms normally are due by the last day of February. But in 2020, the 1099s are due by March 2 because February 29 falls on a Saturday. Form 967 and W-2s still are due to the Tax Commission by January 31.
To file your 1099s, choose one of these options:
- File them by January 31 along with your Form 967 and W-2s.
- File them by March 2. Please follow our online instructions for this option.
The final Form 910 for 2019 also is due in January. Use TAP for the fastest and easiest way to file your withholding forms.
New classes for businesses
You can take advantage of new classes we’ve added to the lineup of free courses we offer the business community. They include:
- Tax and Business Basics 101 for Self-Employed. A class for those who are self-employed. It includes information from the U.S. Small Business Administration, the federal Taxpayer Advocate Service, and the Tax Commission.
- Strengthening Your Business. A class on labor and tax laws, as well as tactics to grow your business. It features information from the Idaho Department of Labor, the Idaho Industrial Commission, the U.S. Small Business Administration, and the Tax Commission.
- Business Taxes for Writers and Editors. A specialized class for those who work from home, such as writers and editors.
Sign up now for these and other free classes through our Eventbrite page.
Tax Commission administers eastern Idaho auditorium district taxes
As of January 2020, account holders in the Pocatello/Chubbuck and Idaho Falls auditorium districts will file their returns with the Tax Commission. They can e-file through TAP or file by paper using new returns we send them. Their new returns will follow the same filing cycle as their Idaho travel and convention returns.
For more information, check out the new Auditorium District webpage at tax.idaho.gov/aud. The page includes maps that show if an address is in an auditorium district.
More updated tax guides online
We’ve rewritten more brochures into tax web guides and made them easier to read. Check them out online.
Sales tax
- Boats, Trailers, and Other Watercraft guide. (Replaces part of brochure #15, RVs, Boats & Aircraft.)
- Printing and Publishing guide. (Replaces brochure #35, Printing.)
- Governments and Sales Tax guide. (Replaces brochure #52, Government.)
- Schools and Sales Tax guide. (Replaces brochure #51, Schools.)
Fuels tax
- Interstate Trucking Companies guide. (Replaces brochure #646, Interstate Trucking Companies.)
Get ready to file your income taxes
The tax filing season is just around the corner. Here’s what you need to know if you’re filing a 2019 Idaho individual income tax return.
Income tax filing dates
- January 27, 2020 – The day we begin processing 2019 Idaho individual income tax returns.
- April 15, 2020 – The deadline to file your 2019 Idaho individual income tax return. (This also is the federal due date).
Track Your Refund Progress 24/7
Visit tax.idaho.gov/refund to get the most up-to-date information about your income tax refund.
Rapid Response = Faster Refund
All income tax returns go through fraud-detection reviews and accuracy checks before we issue any refunds. After you file your return, the Tax Commission might send you letters asking you to:
- Verify that you filed a return
- Verify your identity
- Provide more information
Please respond quickly if you get a letter from us.
Electronic payment options
You now have another way to pay your taxes electronically when you e-file your return. You can use the new direct debit option to authorize us to withdraw a certain amount of money from your bank account on a date you choose. Check with your e-file provider to see if it offers this option.
You also can use Quick Pay, a service that lets you pay your taxes through tax.idaho.gov/quickpay without signing up for an account.
Both the direct debit option and Quick Pay service are free.
Individual instruction changes for 2019 returns
The U.S. government recently extended the federal deduction for tuition and related expenses and reduced the medical expense deduction threshold to 7.5%. These changes happened after we produced our income tax instructions. Visit our Individual Income Tax Forms webpage for guidance on how to report these expenses on your 2019 tax return (see the yellow box).
Stay informed
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