Tax Update for January 2018
- Form 967, W-2s due Jan. 31
- Beware of W-2 email scam targeting employers, employees
- Changes for travel and convention tax return
- Track your income tax refund with our online graphic
- Income tax filing dates
- Form 1099-G: Why are we mailing it to taxpayers?
- Use new Quick Pay for online payments
- Website features new and updated resources
Here's the January 2018 issue of Tax Update — our newsletter for the business community. This edition features articles on filing income tax withholding returns, a W-2 email scam, travel and convention tax return changes, income tax refunds, 1099-Gs, and more!
If you're an employer, you must file your Form 967 and W-2s with the Tax Commission by Jan. 31. The new due date was effective as of last year. Your 1099s are still due by the last day of February. Employers who need to file 1099s have two options:
- File Form 967, W-2s, and 1099s by Jan. 31, or
- File Form 967 and W-2s by Jan. 31, and file 1099s by Feb. 28. If you choose this option, please follow our online instructions.
Form 910 also due in January
The final Form 910 for 2017 is also due in January. Here are the due dates based on filing cycle:
|Filing Cycle||2017 Filing Period||Due Date|
|Semimonthly||Dec. 16-31||Jan. 5, 2018|
|Monthly||Dec. 1-31||Jan. 22, 2018|
|Quarterly||Oct. 1 - Dec. 31||Jan. 31, 2018|
|Annual||Jan. 1 - Dec. 31||Jan. 31, 2018|
Use TAP (Taxpayer Access Point) for the fastest and easiest way to file Form 967, Form 910, W-2s, and 1099s.
Criminals are continuing to target employers to steal taxpayer personal information. One of the most widespread scams involves sending a phishing email to human resources and financial professionals. The email asks them to send employee W-2 or other private/sensitive information. The email looks like it's coming from someone they work with, like the CEO or head of human resources.
If you get this type of suspicious email:
- STOP and make sure the request is legitimate before you send the info.
- CONNECT and CONFIRM by phone or face-to-face with the person who sent you the email request. Don't respond to the email to confirm the sender's request. The sender could be a criminal in disguise using a fake email address.
- If the request is legitimate, take steps to protect the info before you send it. If the request isn't legitimate or you send confidential information to an unauthorized party, please follow the steps in our W-2 email scam flyer.
For more information, see our W-2 email scam flyer. You can also print it as a reminder to use at your workplace.
If you file a travel and convention tax return, you'll see changes starting with the first return for the 2018 reporting period. We made revisions due to a new law requiring short-term rental marketplaces to collect the travel and convention tax for their hosts. The changes include:
- The return is a full page instead of coupon sized.
- Lodging sales are reported by county using a county code.
- The form number is now 1152 (instead of 1150).
- There's a line to include any sales that are being reported for you by short-term rental marketplaces. You'll need to exclude those sales from column 2, "Total lodging sales."
Wondering where your refund is or how long it will take to get it? Here are some refund facts to help you out.
Track your income tax refund progress 24/7
Visit tax.idaho.gov to get the most up-to-date tax refund information. Our refund status graphic tracks your return's progress through four stages.
Typical refund time frames
The time frames below are general and don't apply to every refund. It's best not to depend on getting a refund by a certain date, especially when making purchases or paying bills.
- E-filers: Expect your refund about 7-8 weeks from the date you receive your filing acknowledgment from the state.
- Paper filers: Expect your refund 10-11 weeks after we receive your return. We must manually enter information from paper returns into our database.
- First-time filers: It takes about 3 weeks to enter a first-time filer into the system. Until that time, our refund updates will report your return as "not entered in system." Add those 3 weeks to the estimates above to determine your refund time frame.
- Received a letter from us asking for more information: Your refund will be delayed until we get the requested information. Once we get the information, it will take about 6 weeks to review your material and then finish processing your refund.
Rapid response = faster refund
All income tax returns go through identity theft fraud detection and accuracy checks before we issue any refunds. After you file your return, the Tax Commission may send you letters asking you to:
- Verify that you filed a return
- Verify your identity
- Provide more information
If you receive a letter from us, please respond quickly so we can review your information and send your refund as soon as possible.
For more refund information, visit tax.idaho.gov/refundinfo.
- Jan. 29, 2018 — The day we begin processing 2017 Idaho individual income tax returns.
- April 17, 2018 — The deadline to file your 2017 Idaho individual income tax return (also the federal due date).
Did you recently get a Form 1099-G from the Tax Commission? If so, you may wonder what it's for and what to do with it.
The Form 1099-G is used to report certain government payments. We mailed you the form if you:
- Received an Idaho income tax refund in 2017, and
- You used the federal Schedule A to itemize your deductions for the tax year shown in box 3 of the Form 1099-G.
When you entered the amount of "Taxes You Paid, state and local" on line 5 of the federal Schedule A, you reduced your taxable income by a certain amount. If you received a refund of your state taxes, you overstated that reported amount on your Schedule A. You now owe federal tax on the taxable portion of your refund.
Example: Cynthia reported that she paid $3,000 in state and local taxes when she filed her 2016 federal return in 2017. She then filed her Idaho return and got a refund of $500. This means she paid only $2,500 in state taxes. The $500 refund wasn't taxed by the federal government, so she must report it as income on her 2017 federal tax return.
Action you should take
Report the taxable portion of your refund — the amount in Box 2 of the 1099-G — as income on your 2017 federal Form 1040 return. Add it on the "Taxable refunds" line in the "income" section.
If you didn't use a federal Schedule A to itemize your deductions for the year shown in Box 3 of Form 1099-G, you don't need to take any action.
For more information, visit tax.idaho.gov/1099g.
Pay your taxes online without creating an account through our new Quick Pay option at tax.idaho.gov/quickpay.
With Quick Pay, you schedule your payment and authorize the state to take a certain amount of money from your checking or savings account using ACH Debit. The service is free.
You can pay your income taxes, make estimated payments, or make an audit payment with the new service.
Use Quick Pay if you make only a few payments a year. If you want to see a history of your payments, please register to pay through our TAP system.
We've added or updated the following resources on our website, tax.idaho.gov:
- Short-term lodging. Outlines the tax responsibilities when you rent out your home, cabin, vacation home, or a room in your home for 30 days or less.
- Quick Security Tips for Tax Professionals. Provides tips for tax return preparers to keep their clients' tax information secure.
- Federal Filing Changes and Your Idaho Income Tax Return. Explains when you need to change your Idaho income tax return because of changes to your federal return.
- Urban Renewal Registry. Maintains the plans of Idaho's urban renewal agencies as required by law.
- Personal Property Valuation. Explains how the personal property tax applies to businesses.
- Amusement Devices. Explains how sales tax applies to amusement devices.
- Vending Machines. Explains how sales tax applies to vending machines.
- Production Exemption. Explains how the production exemption applies to businesses.
- IDeal Idaho College Savings Program. Outlines the tax benefits when you open an Idaho college savings account. Also includes a link to a new document that outlines the federal and Idaho tax effects when you withdraw money from the account.