Individual Income Tax Update W-4

Make sure you have the right amount of income taxes withheld from your paycheck. Update your W-4 at least once a year or to account for changes in your life.

Forms and publications

Steps to take now

  1. Use the withholding estimator at IRS.gov to estimate your federal withholding. Update the federal Form W-4 with that information.
  2. Use page 2 of the pdf Form ID W-4 – Employee’s Withholding Allowance Certificate to estimate your Idaho withholding. Fill out Form ID W-4 with that information.
  3. Give both W-4 forms to your employer.

If you owe money with your state tax return

  • If you pay your income taxes by the April due date, penalty and interest don’t apply. You can make prepayments using our free Quick Pay service.
  • If you can’t pay your taxes by the due date, penalty and interest apply. You can request a payment plan to spread out your payments.

Employers

Guidance for retirement and other sources of nonwage income

If you’re receiving retirement or other sources of nonwage income:

  1. Determine if the income is taxable in Idaho.
    • See the Idaho Income Tax Instructions for guidance.
    • Taxable income can be:
      • Retirement income
      • Interest
      • Dividends
    • Generally, Idaho doesn’t tax Social Security income.
  2. If the income is taxable, follow the next steps.

Note: The entity paying the nonwage income might not withhold Idaho tax. It’s your responsibility to estimate the tax you’ll owe and be prepared to pay it.

If the entity paying the nonwage income will withhold Idaho tax for you:

  1. Use pdf Form ID W-4 – Employee’s Withholding Allowance Certificate to determine:
    • Your Idaho withholding status
    • Your number of Idaho allowances
    • Any additional amount to withhold
      • See Form ID W-4 instructions.
      • Consider each source of taxable income as a “job.”
  2. Use the information to complete a W-4, or use the entity’s W-4 substitute.

If the entity paying the nonwage income won’t withhold Idaho tax for you:

  1. Estimate your income tax for the nonwage income source.
    1. Estimate your annual income for the source.
    2. Estimate your tax on the income. Use the income tax rate schedule to estimate the total tax you’ll owe.
  1. Pay the tax you owe.