Investment Tax Credit Carryover and Instructions 2025

Starting with the 2025 Form 967, you’ll file your Form 967 online through TAP (Taxpayer Access Point). You’ll no longer receive a paper return in the mail.

File a Form 967, Idaho Annual Withholding Report, if you either:

Had an active Idaho withholding account for any part of the year
Withheld Idaho income tax during the year

Use this form to report the Idaho income tax you withheld, reconcile payments you made during the year with the amount of tax you withheld, and submit your W‑2, 1099 forms, or both containing Idaho withholding.

Form 967 INSTRUCTIONS – Annual Withholding Report

Sign the return if you’re filing on paper.

We’ll send you a Form 967 if you cancel your account during the year. You don’t have to wait until the end of the year to file, in this case.

Late filing

We charge penalty and interest on the amount of tax due from the due date until you pay.

We can apply a penalty of $2 per month for each W‑2 and 1099 that you don’t submit by the filing due date. The minimum penalty is $10; the maximum penalty is $2,000.

Reconciling

Gather these records and forms to help you reconcile your Idaho income tax withholding:

Payroll records
Idaho withholding payment records or the Record of Idaho Withholding Payments worksheet
Completed W‑2s and any 1099s with Idaho income tax withholding
Form 967, Idaho Annual Withholding Report

Amounts that should balance

Idaho income tax withheld from employee wages
Idaho income tax you forwarded to the Tax Commission throughout the year
Idaho withholding reported on W-2s and 1099s

Round amounts to the nearest dollar when filing Form 910 or Form 967. Round up to the next dollar if an amount is more than 50 cents.

If they don’t balance:

Review all documents for mathematical errors.
Review payments for dollar amounts and dates submitted.
Review all withholding documents (W‑2s and 1099s) to be sure you included only Idaho income tax withholding.
Check for any corrections (Form W‑2C).

If the totals still don’t match after you’ve completed your review, you might owe tax or be due a refund.

Amending your Form 967

Complete a new Form 967 using the correct amounts. (You can print a paper copy of Form 967 from your TAP account through the Letters panel. On your TAP home page (the Summary screen), click the More tab. Then click on View Letters in the Letters panel.)
Include any corrected W-2s (Form W‑2C) and 1099s with Idaho withholding.
If you filed electronically and have more than 20 W-2s, contact the Tax Commission to discuss filing options.
Check the “Amended” box on the Form 967 and send the corrected forms to: Idaho State Tax Commission, PO Box 76, Boise ID 83707-0076.

Online filing

Your EFW2 data file must be in text format that follows the Social Security Administration’s Publication #42-007 and includes the state-specific records defined in our W‑2 e-file specifications. You can find specifications for the EFW2 file layout on our Software Developers page.

You don’t need to file a separate Form 967 if you’ve submitted a valid EFW2 file. We’ll create your Form 967 from your EFW2 file.

Your Form 967 might still have a File Now link after you upload your file. It takes us one to two business days to process your uploaded file. Once we process your file, the File Now link disappears.

Uploading your EFW2 file

Log in to your TAP account.
On the Home page, locate your withholding account and click Upload an EFW2 file or Upload a 1099 file (on the right).
Click Choose File, select the correct file type, and enter a description.
Click Browse, search your computer or network for the file, and select it.
Click Save.

You also can file your W‑2s by entering the W‑2 detail online through your TAP account.

Error messages

Error messages appear when your file contains invalid data or an incorrect layout. You’ll have to fix the issues noted in the error message problems before you can submit the file. In general, the error message indicates a specific row and position in the row that needs attention.

If you have up to 10 errors in your file, the error screen that appears after saving will list all of the errors.
If you have more than 10 errors, we’ll email the list to the email address we have on file for your account.

Note: You can find the specifications for the EFW2 file layout on our Software Developers page.

If you manage multiple companies

If all the companies have individual files, you’ll have to upload them separately.
If you put all the companies in one file, you can upload it as a single file.

Whichever method you choose, you must include an electronic version of Form 967 for each employer file.

Paper filing

If you need to file by paper, you can print a paper copy of Form 967 from your TAP account through the Letters panel. On your TAP home page (the Summary screen), click the More tab. Then click on View Letters in the Letters panel. Once printed, complete your Form 967, and attach paper W-2s and any 1099s with Idaho income tax withholding to the form. Please make sure all copies of employees’ W‑2s and 1099s are legible.

Mail forms to: Idaho State Tax Commission, PO Box 76, Boise ID 83707-0076.

Read this information if you want to file your 1099s in February.

Requirement to file online

Idaho requires you to file W-2s and 1099s electronically if the IRS requires you to file electronically. IRS requires electronic filing for 10 or more information returns. If you’re required to file electronically but don’t, we’ll reject the Form 967 and consider you a non-filer.

Income You Must Withhold On

All wages, tips, and other compensation that employees earned or were paid for services performed in Idaho are subject to Idaho income tax withholding. The pay may be in cash or in another form. Pay includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It doesn’t matter how you measure the compensation or make the payment. Generally, if the Idaho compensation is subject to federal income tax, it’s also subject to Idaho income tax.

Compensation you pay to a former employee for services performed while he or she was still employed in Idaho is subject to Idaho income tax withholding.

Example An employee is granted stock options, and those options vest while the employee is performing services in Idaho. The compensation or gain is subject to Idaho income tax withholding when the employee exercises the options. This is true even if the employee lives or works outside of Idaho when he or she exercises the options.

Wages

All wage income is subject to Idaho income tax if an employee earns the income while working in Idaho. This includes:

Employees who aren’t Idaho residents
Employees who are family members
People working only one day in Idaho (e.g., performers, athletes)
People who aren’t citizens of the United States, unless they’re exempt from federal withholding

Reimbursements for employee business expenses

Your requirement to withhold income tax depends on your reimbursement or allowances plan.

If you have an accountable plan you don’t have to withhold Idaho income tax on reimbursements for employee business expenses.
If you have a nonaccountable plan you must withhold Idaho income tax on reimbursements for employee business expenses.

See IRS Publication 15, Circular E, Employer’s Tax Guide, for definitions of accountable and nonaccountable plans.

Wages paid “in kind”

This refers to wages you pay employees in something other than money. Examples include goods, lodging, food, clothing, services or personal use of a company vehicle.

Generally, you must withhold Idaho income tax on the fair market value of such payments when you make them for services employees provided in Idaho.

Exception You don’t have to withhold Idaho income tax for food or lodging provided for the employer’s convenience if the food or lodging qualifies for an exclusion from wages under federal law.

Supplemental wages

Idaho income tax applies to any of these items if the employee earned it while working in Idaho:

Bonuses
Commissions
Overtime pay
Payments for accumulated sick leave
Severance pay
Awards or prizes
Back pay, retroactive pay, other similar payments

Compute withholding one of these ways:

Combine the supplemental payment with regular wages and treat it as a single payment.
Multiply the separately-issued supplemental payment by 5.3 percent.

Employee benefits

Benefits that are taxable under the Internal Revenue Code (IRC) are subject to Idaho income tax withholding if they’re earned for services the employee provided in Idaho. It doesn’t matter when the employee receives the benefit.

Examples of a Taxable Benefit Cars and flights on aircraft that the employer provides, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. These are also called fringe benefits.

Benefits such as 401(k) plans and cafeteria plans that the IRC considers tax deferred are also tax deferred for Idaho and not subject to income tax withholding.

Stock options

We consider granting stock options to be compensation for services, whether treated as compensation or capital gain income for federal income tax purposes. This income is subject to Idaho income tax withholding if the employee performed services in Idaho between the time the option was granted and the time the option vested. For more information, see Idaho Income Tax Rule 271.

Tips

Tips employees receive for work they do in Idaho are subject to Idaho income tax withholding. Report as Idaho income the same tip amount you reported as federal income. See IRS Publication 531, Reporting Tip Income.

Income Tax Refund Less Than Expected?

Unpaid court fines

If you have an unpaid court-ordered fine, fee, or restitution, the Idaho Supreme Court might have taken all or part of your Idaho income tax refund to divert it to an Idaho Court. (See Idaho Code section 1-1624.) This includes unpaid court debts that date back to the 1990s or earlier.

The Idaho State Tax Commission has no role in this process, other than sending all or part of your state income tax refund to the Idaho courts. Call the Idaho Supreme Court at (208) 947-7445 for questions about the Idaho law that authorized this tax refund diversion. You should receive detailed information about your specific court obligation from the county or counties to which the debt is owed.

Other legal obligations

Idaho state income tax refunds are sometimes diverted to others to pay for outstanding legal obligations. These may include:

Idaho Department of Health and Welfare (usually for unpaid child support).
Call (208) 334-2479 in the Boise area or toll free at (800) 356-9868.
Idaho Department of Labor (for unreimbursed unemployment overpayments).
Call (208) 332-3576 in the Boise area or toll free at (800) 448-2977.
County Sheriff departments (for sheriff’s garnishments).
Call (208) 577-3750.
Internal Revenue Service (for unpaid federal tax debts).
Call toll free at (800) 829-7650.
Bankruptcy trustees

Filing Information Returns (1099s, W-2s)

Copies of these forms are due to the Tax Commission by the last day of February.

How to file

1099s are information returns you use to report certain payments and services.

Form 967 and W-2s are due by the last day of January, and 1099s are due by the last day of February. If you have 1099s to file, you can use one of these options:

File all forms (967, W-2s, and 1099s) by the last day of January.
- Following this schedule can help you reconcile your withholding because you’ll be working with all your records at once.
- File online using TAP. If you need to file by paper, you can print a paper copy of Form 967 from your TAP account through the Letters panel. On your TAP home page (the Summary screen), click the More tab. Then click on View Letters in the Letters panel.
- How to upload an EFW2 file to Idaho.
File your Form 967 and W-2s by January 31, and file your 1099s by the last day of February.
- Make sure to include the amount of Idaho withholding from the 1099s along with the withholding from the W-2s in the “Total Idaho Tax Withheld” amount you reported on the Form 967.
- Also, include the number of 1099s with Idaho withholding on Form 967.
- If you’re participating in the Combined Federal/State Filing program, check the appropriate box on the form.
- Read Filing 1099s in February, below.

Filing 1099s in February

If you choose the second option, follow these instructions when you file your 1099s:

Filing online through TAP

Report in the RV record (the electronic Form 967) only the withholding amounts from the 1099s included in the file.

Log in to your TAP account.
On the Home page, locate your withholding account and click File/View Returns (on the right).
Click Upload an EFW2 file or Upload a 1099 file.
Click Browse, select the correct type, and enter a description.
Click Browse to search your computer or network for your EFW2 or 1099 file and select it.
Click Save.

Once you’ve successfully uploaded your file, you’ll see a confirmation screen that you can print.

You can file these returns using TAP, but you can’t enter the data on them manually, one by one. See:

IRS Pub 1220, Filing Information Returns Electronically
Information Return 1099 E-Filing Guide
Software Developers page

Filing by paper (and the 1099s include Idaho withholding):

On Form 967, line 2, “Total Tax Withheld,” enter the Idaho withholding from the 1099s and the Idaho withholding from the W-2s you filed earlier.
Include the number of 1099s with Idaho withholding on Form 967, line 9.
Write “AMENDED” on Form 967.
Mail Form 967 and your 1099s to: Idaho State Tax Commission, PO Box 76, Boise ID 83707-0076.

For more information about completing the Form 967, see the Form 967 INSTRUCTIONS – Annual Withholding Report.

Filing by paper (and the 1099s don’t include Idaho withholding):

Complete Form 96 – Annual Information Return (or include a copy of IRS Form 1096).
Mail the form and your 1099s to: Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410.

1099 Combined Federal/State Filing program

This program allows payers and agents to file an information return with the federal government, and it authorizes the release of this information to the applicable states. You must get permission from the IRS in advance to participate. See IRS Publication 1220.

If your information returns have Idaho withholding, you must complete Form 967, Idaho Annual Withholding Report.

If you file your 1099s and other information returns through the Federal/State Combined Filing program:

Don’t file 1099s electronically through the Tax Commission’s website.
Don’t submit paper copies of 1099s with your Form 967.

2021 Tax Rebate: Frequently Asked Questions

On May 10, 2021, Governor Little signed House Bill 380, which creates the 2021 Idaho tax rebate fund to provide a tax rebate to full-year residents of Idaho. Check out our Tax Rebate Video, and find answers to frequently asked questions about the tax rebate below.

I received an email telling me I’m going to get the rebate. Is this legitimate?
Yes. We’re sending emails about the rebate on behalf of Governor Brad Little. The emails are going to people who e-filed their 2020 income tax returns because we have their email addresses.
Who’s eligible for the tax rebate?
Any Idahoan who was a full-year resident in 2019 and 2020 and who also filed an Idaho individual income tax return or a grocery credit refund return for 2019 and 2020 is eligible for the rebate. Nonresidents and part-year residents aren’t eligible.
A full-year resident is either someone who keeps a home in Idaho for the entire year and spends more than 270 days of the year in Idaho, or someone domiciled in Idaho for the entire tax year. Domicile is the place you have your permanent home and where you intend to return whenever you’re away; it’s the place that’s the center of your personal and business life. If you’re stationed in Idaho on active military duty, you’re considered a resident of the state where you’re domiciled.
What do I need to do to get my tax rebate?
You need to file valid 2019 and 2020 individual income tax returns by December 31, 2021, to receive the rebate.
What is the amount of the tax rebate?
The amount is based on the most recent, approved 2019 tax return information on file at the time the rebate is issued. It’s one of the following, whichever is greater:
- $50 per taxpayer and each dependent
- 9% of the tax amount reported on Form 40, line 20, or line 42 for eligible Idaho residents and service members using Form 43.
When will the Tax Commission start issuing the tax rebate payments?
The Tax Commission will start processing payments on August 2, 2021, to eligible taxpayers. We’ll issue payments in the order of the date that we’ve received the 2020 tax returns, starting with taxpayers who are eligible to receive the rebate through direct deposit, and then moving to those who will receive a paper check. About 100,000 payments will be issued weekly. We’ll continue to process payments throughout 2021 as taxpayers file their returns and become eligible for the rebate.
How will I receive my rebate payment?
Taxpayers who received their 2020 tax refund through a direct deposit to their bank account will receive their rebate payment the same way. If the bank rejects the direct deposit (because taxpayers closed their account, for example), we’ll automatically send a check to the most recent address we have on file instead. This address in most cases is the one on taxpayers’ 2020 tax return.
Taxpayers who don’t get their rebate by direct deposit will receive paper checks sent to the most recent address we have on file. This includes taxpayers who’ve used a refund product (such as a Refund Anticipation Loan) when filing their return with tax software or a tax preparer.
How can I check the status of my rebate payment?
Track the status of your rebate using the Where’s My Rebate tool at tax.idaho.gov/rebate.
You can use this tool anytime. The information in the tool is the same information that our Taxpayer Services representatives can provide over the phone.
To retrieve your rebate status, you’ll need both of these:
- Your Social Security number or Individual Taxpayer Identification Number
- Your Idaho driver’s license number, state-issued ID number, or 2020 Idaho income tax return
What if my filing status changed between 2019 and 2020?
We calculate the rebate using the information on your 2019 tax return. If your filing status changed when you filed your 2020 tax return, the amount of the rebate you receive might be affected in certain cases. For example:
- You filed as Single in 2019 but filed as Married Filing Joint in 2020. Your rebate will be based on the 2019 return and will be issued only to you.
- You filed as Married Filing Joint in 2019 but filed as Single, Head of Household, or Married Filing Separately in 2020. Your rebate will be based on the 2019 return, but you’ll receive only half of the rebate amount. It will be split equally between you and the spouse you filed with in 2019 (following Idaho Code section 32-906).
My address has changed since I filed my 2020 tax return. How do I update it so I can get my rebate check?
Send an email to RebateAddressUpdate@tax.idaho.gov to request an update to your address. Please provide your:
- Full name
- Last four digits of your Social Security number or Individual Taxpayer Identification Number
- Previous address
- New address
We’ll update your address within 3 to 5 business days. However, we won’t be able to reply to your email due to the number of requests we expect. Please only use this email address to send us a mailing address change.
If you have rebate questions, see the other FAQs on this page or email us at Submit a question. You should receive a response within 5 to 7 business days.
Can I still get the tax rebate if I wasn’t required to file a tax return?
If you aren’t required to file a return, you might be eligible to file one for any overpaid withholding or to receive a grocery credit refund. You must be an Idaho resident to receive a grocery credit refund. Visit tax.idaho.gov and click on “Income Tax Online Guide” for more information.
Why haven’t I received my rebate? I filed my 2019 and 2020 tax returns.
All income tax returns go through fraud detection reviews and accuracy checks. We might send you letters to verify your identity or to ask for more information. If you don’t respond to these letters, we can’t finish processing your returns. As a result, your rebate payment will be delayed.
Will my tax rebate be applied to other taxes I owe before it’s refunded to me?
Yes. We’ll reduce your rebate payment if you have other tax liabilities with the Tax Commission (e.g. you owe income tax, sales tax, withholding tax, etc.); or if you have any outstanding obligations to the following:
- Idaho Department of Health and Welfare (usually for unpaid child support).
  Call (208) 334-2479 in the Boise area or toll free at (800) 356-9868.
- Idaho Department of Labor (usually for unreimbursed unemployment overpayments).
  Call (208) 332-3576 in the Boise area or toll free at (800) 448-2977.
- Idaho Supreme Court (for unpaid court-ordered fines, fees, or restitution).
  Call (208) 947-7445.
- County Sheriff departments (for sheriff’s garnishments).
  Call (208) 577-3750.
- Internal Revenue Service (for unpaid federal tax debts).
  Call toll free at (800) 829-7650.
- Bankruptcy trustees
You might receive a letter from us if we reduce your rebate payment.
Is the tax rebate taxable?
Rebates are handled exactly like regular refunds; they’re not taxable to Idaho. However, they might be taxable on the federal level. Please see the instructions for your federal income tax return for reporting state and local income tax refunds.
Who can I contact for more information?
If you have questions, please call us at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.

Interstate Trucking Companies

This page provides some basic Idaho income tax information for interstate trucking companies and explains how to calculate your Idaho apportionment factor.

Terms used in this guide

Trucking company – A motor common carrier, a motor contract carrier, or an express carrier paid primarily to transport other’s tangible personal property.

Mobile property – All motor vehicles, including trailers, used directly in moving tangible personal property.

Mobile property mile – The movement of a unit of mobile property a distance of one mile, whether loaded or unloaded. These usually are the same as the miles reported on an International Fuels Tax Agreement (IFTA) tax return.

Original cost – The basis (for federal income tax purposes) of the property when it was bought. Or, if the property has no such basis, the valuation of the property for Interstate Commerce Commission (ICC) purposes. Or, if the cost can’t be determined, the fair market value on the date it was acquired.

More information

See Income Tax Rule 580.01.d.

The Multistate Tax Commission provides more information on special rules for interstate trucking.

Your requirement to file

Idaho law requires a trucking company filing as a corporation or S corporation to file an Idaho income tax return if your company does any of these things during the year:

Owns or rents any real or personal property (except mobile property) in Idaho
Makes any pickups or deliveries in Idaho
Travels more than 25,000 mobile property miles in Idaho
Makes more than 12 trips into Idaho

You’ll apportion your income to Idaho.

You also must file an Idaho income tax return if the total mobile property miles traveled in Idaho exceeds 3% of the total mobile property miles that the company traveled in all states.

Read more about apportionment in the “Calculating your apportionment” section below.

Other businesses that must file

You must file an Idaho income tax return if your total business gross receipts multiplied by the Idaho apportionment factor exceeds $2,500 and you’re either of the following:

A nonresident individual operating as a sole proprietorship
A limited liability company (LLC) filing as a disregarded entity on a federal Schedule C

Income subject to apportionment

Start with your federal taxable income from the business and add Idaho’s additions. Subtract both allocable nonbusiness income and Idaho’s subtractions.

This is the income you’ll multiply by your apportionment factor.

Calculating your apportionment

Idaho taxes part of your overall income. The percentage by which it’s taxed is called the apportionment factor. The three-factor apportionment is made up of three numbers, which then are divided by three:

Property factor
Payroll factor
Sales factor (single sales)

The property factor, payroll factor, and sales factor each are calculated to determine the Idaho part of that factor as determined by law. (See Idaho Income Tax Rule 580.01.d.)

Property factor

Owned property is valued at its original cost. Property rented from others is valued at eight times the net annual rental rate.

Include mobile property. The value of mobile property located both inside and out of Idaho during the year is included in “A” in the ratio that those miles in Idaho bear to property miles everywhere.

A divided by B

A is the average value of your property owned plus rented property that was used in Idaho during the year.
B is the average of all your real and tangible property owned plus rented property that was used everywhere during the year.

Payroll factor

This is compensation paid during the year.

Compensation paid to personnel both inside and out of Idaho during the year is included in “C” in the ratio that their services performed in Idaho bear to their services performed everywhere based on mobile property miles.

C divided by D

C is Idaho compensation during the year
D is compensation paid everywhere during the year

Sales factor

This is the company’s annual gross receipts.

Idaho receipts for hauling freight, mail, and express are determined at 100% for shipments that begin and end in Idaho. Idaho receipts for hauling these items when the shipment passes through, into, or out of Idaho is determined by the ratio that the mobile property miles traveled in Idaho bears to the total mobile property miles traveled everywhere.

E divided by F

E is the company’s Idaho gross receipts
F is the company’s gross receipts everywhere

Idaho apportionment example

ABC Inc. is an interstate trucking company based in Utah.

Mobile property miles

During the year it had 29,500 mobile property miles in Idaho and total mobile property miles of 120,000. The percentage of miles traveled in Idaho equals 24.5833% (29,500/120,000).

Property factor

ABC Inc. had a truck and trailer ($60,000) and a warehouse in Utah ($90,000).

Total	Idaho (percentage)
$150,000	$14,750 (9.8333%)

Payroll factor

ABC Inc. had Interstate payroll of $20,000 and administrative payroll of $10,000.

Total	Idaho (percentage)
$30,000	$4,917 (16.3900%)

Sales factor

ABC Inc. had interstate sales of $500,000.

Total	Idaho (percentage)
$500,000	$122,917 (24.5833%)

Final calculations

Percentages added together	50.8063%
Divided by…	3
Your Idaho apportionment factor	16.9354%

Filing

Here’s a listing of all our current year business income tax forms. Prior year forms also are available.

Please include a schedule with your Idaho income tax return showing how you determined your company’s Idaho property, payroll, and sales as used in the apportionment factor calculation.

Recordkeeping

Check our Business Income Tax — Recordkeeping page for guidance on how long to keep your records. Keep all records used to calculate the Idaho apportionment factor, income and deductions.