Search Category: Income Tax
Instruction Changes for 2021 Individual Income Tax Returns
Qualifying age raised for Idaho Child Tax Credit
Congress temporarily increased the age of a qualifying child from 16 and under to 17 and under for the federal definition of a qualifying child. Since the Idaho child tax credit uses the federal definition, Idaho 
Form 40, line 25 (page 9 in the instructions) and Idaho Form 43, line 46 (page 21 in the instructions) should now read:
- Be age 17 or under as of December 31, 2021
Federal credit for child and dependent care expenses increased
Idaho allows a deduction for expenses paid to care for a child or other dependent. Idaho uses the federal limitations on the amount of expenses. The federal limits were raised from $3,000 for one child or dependent or $6,000 for more than one child, to $8,000 for one child or $16,000 for more than one child.
On line 2 of the Child and Dependent Care Worksheet for Form 39R, Part B, line 6 (page 30 of the instructions) and for Form 39NR, Part B, line 4 (page 42 of the instructions), enter $8,000 for one child or dependent or $16,000 for more than one child or dependent.
Charitable deduction for taxpayers taking the standard deduction
Taxpayers who don’t itemize deductions can take a charitable deduction for cash contributions made in 2021 to qualifying organizations.
If you claimed the standard deduction on federal Form 1040 and reported a charitable contribution on line 12b, add that amount to the amount on Idaho Form 40, line 16 for Idaho residents or Form 43, line 36 for Idaho part-year and nonresidents.
Don’t enter more than $300 if filing as single, head of household, married filing separately, or qualifying widow(er) or $600 if married filing jointly.
If you’re e-filing, your software package should add this deduction to your Idaho return automatically.
Idaho subtraction for taxpayers with qualified disaster loss
Idaho taxpayers who’ve suffered a disaster loss in Benewah, Bonner, Kootenai, and Shoshone counties because of straight-line winds on January 13, 2021, can report the loss amount on Idaho Form 39R. Go to line 23 (Other Subtractions), and provide an explanation of the subtraction. For federal purposes, taxpayers can increase their standard deduction for this loss without itemizing.
Qualified business income (QBI) deduction for part-year and nonresident taxpayers
There’s now a new way for part-year residents and nonresidents to calculate their Idaho qualified business income (QBI) deduction. The deduction is proportional to the Idaho qualifying business activity. (See Idaho Income Tax Administrative Rule 252.02 for more information.) These instructions are for Idaho Form 43, line 40 qualified business deduction.
Worksheet
- Enter the business information in the table below using information from your K-1s and federal Form 8995. Then add your totals for Column (c) and for Column (e).
(a)
Business name
(b)
Taxpayer identification number
(c)
Total qualified business income or (loss)
(d)
Idaho apportionment factor
(e)
Idaho source qualified business income or (loss) (Multiply Column c by Column d)
TOTAL: TOTAL: - Divide the total of Column (e) by the total of Column (c) for your Idaho percentage of qualified business income….. ___________
- Enter the qualified business income deduction you claimed on your federal return……………………….. ___________
- Multiply line 2 by line 3 to calculate your Idaho qualified business income deduction…………………… __________
- Enter the amount from line 4 on Idaho Form 43, line 40.
Coronavirus and Idaho Taxes: Frequently Asked Questions and Answers
Below are answers to frequently asked questions about the coronavirus pandemic and Idaho taxes. If your question isn’t addressed below, please assume business as usual or contact the Tax Commission. This list will be updated as new information becomes available.
- Have you extended the deadlines for any taxes due in 2021?
Yes. The Tax Commission has extended the 2020 Idaho income tax filing and payment deadlines from April 15, 2021, to May 17,2021, to match the extended federal deadline.
Idaho’s extension applies to all taxpayers subject to Idaho’s individual income tax (i.e., individuals, trusts, and estates), regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by May 17.
The Tax Commission also extended the deadline to apply for property tax relief programs from April 15 to May 17. The programs include:
- Property Tax Reduction (circuit breaker)
- Property Tax Deferral
- 100% Service-Connected Disabled Veterans Benefit
- Is the pandemic delaying income tax refunds?
At this time, we don’t see any delay in processing refunds. We’ve issued most refunds within the expected timeframes. While many refunds can be processed sooner — especially on e-filed returns — some can take up to 11 weeks, especially if the return is incomplete and we need to contact taxpayers for clarification.
- When will I get my stimulus payment?
The federal government is issuing stimulus payments, not the State of Idaho. The IRS has information on its website about when you’ll get your payment. Visit irs.gov/coronavirus/get-my-payment.
Audits
- I’m working with a tax auditor. What’s the best way to stay in touch?
Please contact the auditor by phone or email.
Payment Plans
- I have a payment plan with you. How do I stay in touch?Please email us at paymentplanchange@tax.idaho.gov if you have questions or need to make changes to your plan.
Resources
- coronavirus.idaho.gov — Get information on the coronavirus in Idaho.
- irs.gov/coronavirus — Get information on the coronavirus and federal taxes, including the status of your federal stimulus payment.
Form 402
Individual Apportionment for Multistate Businesses
FORM 40EZ, 40, 43, 39R, 39NR, TAX TABLES
Instructions - Individual Income Tax
Nonprofits and Income Tax
This guide provides some basic Idaho income tax information for nonprofits.
- All nonprofits in Idaho must register with the Idaho Secretary of State.
- Contact the Internal Revenue Service (IRS) to request approval for an income tax exemption. Read more on the IRS Applying for Tax Exempt Status page.
Filing requirements
This page lists our current-year business income tax forms.
You must file Idaho Form 66 if you’re a resident IRA trust or other trust required to report unrelated income.
Exempt from tax
Organizations to which the IRS has granted exempt status also are exempt from Idaho income tax.
Exception: You must file an Idaho income tax return based on your entity type and pay Idaho tax on any unrelated business income your organization reports on federal Form 990-T.
Interest and Penalties
Interest applies to overdue tax from the original due date of the return until you pay the tax. See interest rates for recent years.
Penalties apply to late returns, late payments, or both. The law determines calculations, and they differ by tax type.
It’s important that you get in touch with us if you’ve forgotten to file for one or more tax periods.
When penalty applies
By law, you’ll owe a penalty if you:
- Don’t file a tax return on time (5%/month to a maximum of 25%).
- File a return on or after the original due date and pay tax due after you file (0.5%/month to a maximum of 25%).
- Don’t have a valid extension and don’t pay tax due by the original due date (2%/month from the original due date to the payment date).
- Substantially understate tax due (10%).
- Disregard rules without an intent to defraud (5%).
- File a false or fraudulent tax return (50%).
The minimum penalty is $10.
Calculating income tax penalty
See how we calculate penalties for income tax, based on the law: How Your Income Tax Penalty Is Calculated.
You can also use the Penalty and Interest Estimator to calculate what you could owe.
Extensions
You might qualify for an extension to file your income tax return without a filing penalty.
- Extensions don’t apply to payments — you must pay in full by the original due date to avoid interest and possible penalties.
- Even with a valid extension, you must pay any tax you owe when you file your return during the extension period, or a penalty applies.
- The other penalties described above might also apply.
What you don’t know about a “valid extension” for your income tax return can hurt you. See the Extensions page for more information.
Individual Income Tax Forms Archive
Form 24
Grocery Credit Refund and Instructions
Form 39NR
Part-year Resident and Nonresident Supplemental Schedule
Form 39R
Resident Supplemental Schedule
Form 40
Individual Income Tax Return
Form 40EZ
Income Tax Return for Single and Joint Filers With No Dependents
Form 40, 43, 39R, 39NR
Instructions - Individual Income Tax
Form 43
Part-Year Resident & Nonresident Income Tax Return
Form 49ER
Recapture of Qualified Investment Exemption from Property Tax and Instructions
Form 49R
Recapture of Idaho Investment Tax Credit and Instructions
Form 49
Investment Tax Credit and Instructions
Form 49C
Investment Tax Credit Carryover and Instructions
Form 51
Estimated Payment of Individual Income Tax
Form 56
Net Operating Loss Schedule
Form 67
Credit for Idaho Research Activities and Instructions
Form 68
Broadband Equipment Investment Credit and Instructions
Form 68R
Recapture of Idaho Broadband Equipment Investment Credit and Instructions
Form 75
Fuels Use Report and Instructions
Form 75-BST
Fuels Tax Refund Worksheet, Idaho Consumers with Single or Multiple Bulk Storage Tanks
Form 75-LFA
Fuels Tax Refund Worksheet, Line Flush Allowance
Form 75-NM
Fuels Tax Refund Worksheet, Nontaxable Miles (Special Fuels Only)
Form 75-PTO
Fuels Tax Refund Worksheet - Power Take-off and Auxiliary Engine
Form 850-U
Self-Assessed Use Tax Return and Instructions
Form 96
Form 96 Annual Information Return
Form 402
Individual Apportionment for Multistate Businesses
Form ID-FTHB
Beneficiary and Withdrawal Schedule - First-time Home Buyer Savings Account
Form ID-VP
Income Tax Voucher Payment
Form ST-102
Use Tax Exemption Certificate, New Resident
Form TCR
Sales Tax Refund Claim