Tax rebates not taxable; corrected 1099-Gs coming

BOISE, Idaho — Feb. 15, 2023 — The Idaho State Tax Commission has been receiving phone calls asking whether Idaho’s tax rebates are taxable. The answer is no. The IRS announced on February 10, 2023, that taxpayers who received Idaho’s tax rebates won’t need to report these payments on their 2022 federal income tax returns. Idahoans also don’t need to report the rebates on their state income tax returns.

As a result of the IRS determination, the Tax Commission will be sending corrected Form 1009-Gs to certain taxpayers who itemize. The corrected form excludes the amount of the rebates they received in 2022.

“We’re not pleased that the IRS waited to make a decision after 1099s were required to be sent,” said Tax Commission Chairman Jeff McCray. “This delay is costing Idaho taxpayers unnecessary rework and angst. We expect better from our federal partners.”

Taxpayers who have questions can call the Tax Commission at (208) 334-7660 in the Boise area or toll free at (800) 972-7600.