Search Category: Income Tax
Idaho Food Tax Credit
The food tax credit (formerly known as the grocery tax credit) offsets the sales tax you pay on food throughout the year. For most Idaho residents it’s $155 per person or up to $250 if you submit receipts for sales tax paid for food.
You must be an Idaho resident to be eligible, and you might be able to claim a food tax credit for your dependents, too. This page explains Idaho food tax credit requirements and restrictions.
Required to file a tax return?
If you’re required to file an Idaho income tax return, claim your Idaho food tax credit refund when you file your individual income tax return.
Stop here! Follow the instructions in your tax software or the Instructions for Form 40 or Form 43. Disregard the information below.
NOT required to file an Idaho income tax return?
You can get an Idaho food tax credit refund even if you’re not required to file an income tax return. If you’re an Idaho resident who didn’t make enough money in 2025 to file an income tax return, you’re still eligible to receive a food tax credit refund. You must use a form to claim this credit refund.
Which form to use?
If you need help filing
- Contact us by phone or email us at Submit a question. Please note that due to the volume of emails we’re receiving, you should receive a response within 5 to 7 business days.
- Find a site near you where you can get free tax help.
Laws and rules
- Idaho Code section 63-3024A, Food Tax Credits and Refunds
- Income Tax Rule 771 Grocery Credit: Taxable Years Beginning After December 31, 2007
Income Tax Rules Committee
This committee is responsible for all individual and business income tax rules. Subscribe to Tax Professionals for updates.
Contacts
| Position | Name | Contact Information |
|---|---|---|
| Committee Chair | Trisha Thomas | trisha.thomas@tax.idaho.gov |
| Rules Officer | Philip Johnson | philip.johnson@tax.idaho.gov |
Upcoming meetings
Rules under discussion (status board)
Income (35.01.01)
| Rule | Negotiated Rules Draft | Sections Under Discussion |
|---|---|---|
| 35.01.01 | 350101_07072026_Draft | 252, 771, 799, 895, and 896 |
Meetings history
| Date | Recordings |
|---|---|
| June 14, 2023 | Meeting recording |
| July 9, 2026 | Meeting recording |
In Idaho for More Than a Temporary Purpose
If you’re on vacation or visiting, you’re considered to be in Idaho only for a temporary purpose. However, you should consider several factors to determine whether you’re in Idaho for more than a temporary purpose, including:
- The time you spend in Idaho: Are you here for more than 90 days?
- Any business activity you conduct: Is your stay related to a significant business purpose?
- Banking and other financial dealings: Is your stay related to a significant financial purpose?
- Family and social ties: Do you have important family or social ties in Idaho?
If you answered “yes” to any of the questions above, you must show that your stay is consistent with that of a vacationer or visitor.
Specific Circumstances of Residency
This section provides scenarios for certain people in Idaho, their residency status, and what that means for filing Idaho income tax returns.
Absent from Idaho for 445 days in a 15-month period
Some people domiciled in Idaho can be treated as nonresidents. Idaho allows an exception to being a resident if you were out of Idaho for at least 445 days in a 15-month period. In this case, you’re not considered to be an Idaho resident and may not have to file an Idaho income tax return.
But the 445-day absence exception isn’t available if:
- You have a permanent home in Idaho where your spouse or minor children live for more than 60 days during the calendar year.
- You claim Idaho as your tax home for claiming “away-from-home” expenses on your federal return.
- You’re employed on the staff of a U.S. Senator or Representative.
- You hold an elected or appointed office of the U.S. Government other than the armed forces or career appointment in the U.S. Foreign Service.
When you’ll be an Idaho resident again
After you initially satisfy the 445-day absence test, you’ll be considered an Idaho resident again if at any point you’re in Idaho more than 60 days in any calendar year.
John is single and is domiciled in Idaho. He works for a construction company that assigned him to a three-year project in Alaska. John will return to Idaho when the work completes. He claimed Alaska as his tax home for federal income tax purposes. John left Idaho on July 15, 2014. He was in Idaho from March 20, 2015 through March 27, 2015, and from December 15, 2016 through December 30, 2016. John returned to his home in Idaho on September 30, 2017 when the project he was working on wrapped up. He stayed in Idaho through the end of 2017.
- John’s initial 15-month period started July 15, 2014.
- 2014: John was a part-year resident. He was a resident of Idaho from Jan. 1 – July 14. He was a nonresident from July 15 – Dec. 31.
- 2015: John was a nonresident. He didn’t have to file an Idaho income tax return because he was absent from Idaho for 450 days in the first 15-month period – July 15, 2014, through October 15, 2015 and didn’t have any Idaho source income.
- 2016: John was again a nonresident.
- 2017: John was a part-year resident. From Jan. 1 – Sept. 29 he was a nonresident. He became a resident again on September 30, 2017. This is the date he returned to Idaho and remained for more than 60 days.
If John was married:
If his wife stayed at home in Idaho, John wouldn’t qualify for nonresident status. He’d be an Idaho resident for 2014-2017 because he was domiciled in Idaho. (This example also applies to people working out of the country.)
In the military
Your military home of record might not be where you’re domiciled. Typically, your state of legal residence is also your state of domicile, but this could be different from your home of record. If you’re stationed in Idaho on active military duty, you’re considered a resident of the state where you’re domiciled.
- If Idaho is where you’re domiciled, you’re an Idaho resident.
- If your domicile is another state, you’re a military nonresident.
- Active duty military pay isn’t taxed.
- Military nonresidents are taxed on other income received from Idaho sources.
A nonmilitary spouse living in Idaho can be a resident, part-year resident, or a nonresident.
Gary and his wife, Linda, are domiciled in Alabama. Gary is in the Air Force and claims Alabama as his home of record. In October 2016, Gary was transferred to Mountain Home Air Force Base. They both moved to Idaho and stayed in Idaho during 2017. Since Gary’s domicile isn’t Idaho, he’s a military nonresident. But if Gary changes his domicile to Idaho, he’d be an Idaho resident.
Since Linda had the same domicile as Gary, she is a nonresident while in Idaho unless she changes her domicile to Idaho. She’d be an Idaho resident or part-year resident depending on the date her domicile changed.
Transportation employees
Federal laws limit states from taxing compensation of certain types of employees. You’re subject to income tax only in your state of residence if:
- You’re an interstate rail or motor carrier employee, and
- You have regularly assigned duties in more than one state.
This exclusion doesn’t apply to government employees. The part of your income earned in Idaho is taxable to Idaho.
People who move for seasonal work
A married couple, Don and Diane, have a fishing business and a home in Alaska. They also have a home in Idaho where they live during the off season. They have both registered to vote in Idaho.
They live in Idaho at least part of the year, so they’re either residents or part-year residents.
They’ll need to determine where their domicile is.
If Don and Diane are domiciled in Idaho — or lived in Idaho more than 270 days (even though they’re domiciled in Alaska) — they’re considered Idaho residents.
Spouses who live and work in different states
Spouses can have separate residences and domiciles.
Cindy lives and works in Idaho. Craig lives and works in Washington. They’re married.
Cindy is an Idaho resident. Craig could be an Idaho resident if he’s domiciled in Idaho.
If they file a joint return for federal income tax purposes, they must file a joint return for Idaho. If Craig isn’t a resident of Idaho, they must file using an Idaho Form 43, Idaho Part-year Resident & Nonresident Income Tax Return. Craig would be listed as a nonresident. Cindy would be listed as a resident.
Because Idaho and Washington are both community property states, each spouse has a one-half interest in the other’s earnings. They must report one-half of all the community income (including Craig’s earnings) regardless of source plus any separate income Cindy might have. Craig must report one-half of the community income that’s from Idaho sources plus any separate income from Idaho sources.Retired people traveling in a motorhome
Vern and Vera retired recently. They were residents of Idaho and domiciled here. Since retiring, they've sold their Idaho home and bought a motor home. They plan to travel around the country.
Idaho will continue to be their domicile until they establish a new one. Since they'll be traveling around the country and have no intention to establish a new domicile, Idaho remains their domicile. They'll continue to be Idaho residents and all income is taxable to Idaho.
Domicile
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.
Once established, your domicile doesn’t change until you abandon it, get a new one, and are living in your new domicile.
Domicile and residence (where you live) aren’t the same thing:
- You can have more than one residence.
- You can have only one domicile.
Generally, if you’re domiciled in Idaho, you must file an Idaho income tax return. (See Absent from Idaho for 445 days in a 15-month period.)
Proving you changed your domicile
You might need to prove you changed your domicile. Evidence of a change of domicile can include:
- Where your family lives
- A comparison of homes in different locations
- Where you’re involved in business
- Where and how you spend time during the year in question
- Where you keep items that are near and dear to you
- Giving up your driver’s license or homeowner’s exemption
This isn’t a complete list. Consideration of all facts and circumstances helps determine your domicile.
Find out how your residency can affect military income and a military spouse’s income: Income Tax for Active-Duty Military
Guidance for Filing Returns with Community Income
This page provides more information about community property, separate property, and filing income tax returns.
Also see:
Both Idaho residents and domiciled in Idaho
Filing “Married filing jointly”
- Both of you must report all community income and separate income.
Filing “Married filing separately”
- Each of you must report half of the community income and deductions (e.g., community income and expenses from a business or investment, or personal expenses paid from community funds).
- Each of you must report your separate income and deductions (e.g., separate investment income and the related expenses).
- If one of you itemizes, the other must also itemize.
- Both of you must attach a copy of the worksheet showing the allocation of community income and expenses.
One spouse domiciled in Idaho, the other spouse domiciled in a separate-property state
- The income the spouse domiciled in Idaho earned is community property.
- The income the spouse domiciled in a separate property state earned is separate property.
Because the income of a spouse domiciled in Idaho is community property, the Idaho spouse reports half of the community income, plus any of his or her separate income from separate property.
The spouse domiciled in the separate-property state reports the other half of the community income from Idaho sources to Idaho and his or her income from the separate property from Idaho sources.
- Bill is domiciled in Idaho. He earned $20,000 in wages for the year. He’s married to Pam.
- Pam is domiciled and resides in Oregon, which is a separate-property state. She earned $30,000 in wages.
- Bill and Pam file “married filing jointly” on their federal income tax return, Form 1040. They file an Idaho Form 43.
What Bill does
Bill, as a resident of Idaho, must include his share of the community income from all sources on the joint Idaho return. That’s half of Bill’s wages, or $10,000.What Pam does
Pam, as a nonresident of Idaho, must include her share of the community income from Idaho sources on the joint Idaho return. That’s the other half of Bill’s wages, or $10,000. Pam doesn’t include her wages of $30,000 because it’s separate property not sourced to Idaho and isn’t taxed by Idaho.What Bill does
Bill files a Form 40 as a resident of Idaho. He includes his share of the community income from all sources. That’s half of the $20,000 from his wages, or $10,000. He doesn’t report any of Pam’s wages.What Pam does
Pam files a Form 43 as a nonresident of Idaho. She reports her share of community income from Idaho sources. That’s half of Bill’s wages, or $10,000.Spouses domiciled in different community-property states
Usually:
- The spouse who’s domiciled in Idaho reports half of all the community income.
- The spouse who’s domiciled in another community-property state and a nonresident of Idaho reports half of the community income from Idaho sources.
- Joe is domiciled in Idaho. He earned wages of $40,000 during the year. He’s married to Samantha.
- Samantha is domiciled and resides in Nevada, a community property state. Samantha earned $60,000 in wages.
- They file a joint federal income tax return Form 1040. So, they must file a joint Idaho tax return, too.
What Joe does
Joe is an Idaho resident. He must include his share of the community income from all sources on the joint Idaho return. That is:- Half of his wages, or $20,000
- Half of Samantha’s wages, or $30,000
What Samantha does
Samantha is a nonresident of Idaho. She’s only required to include her share of the community income from Idaho sources on the joint Idaho return. That is:- Half of Joe’s wages, or $20,000
Filing for year of divorce
You must use the same filing status on your Idaho return that you use on your federal return. Choose a filing status for the year based on your legal marital status on the last day of the year (December 31).
- Legally divorced: File as Single. (You can file as Head of Household if you qualify.) Report half your joint income plus all your separate income. See Example 4, below.
- Separated but not legally divorced: File either as Married filing separately or Married filing jointly. (You can file as Head of Household if you qualify.) The default is typically Married filing separately, but you and your spouse can choose to file jointly.
- If Married filing separately and you’re both domiciled in Idaho: Include half your joint income plus all your separate income. If your spouse itemizes, you must also itemize unless you file as Head of Household. You and your spouse will each file your own returns.
- If Married filing jointly: Include all your and your spouse’s income. You and your spouse will file only one return that you’ll both sign.
- If you have children or dependents: You can file as Head of Household if you qualify. You don’t have to itemize if your spouse chose Married filing separately and itemized.
Joint income is any income you and your spouse receive through your final divorce date. Income you receive after that date is separate income.
- George earned $28,000 from January to June. He earned $32,000 from July to December.
- Kate earned $25,000 from January to June. She earned $22,000 July to December.
What George does
George reports $58,500 on his separate return at the end of the year:- Half his first six months’ income = $14,000
- Half Kate’s first six months’ income = $12,500
- All his second six months’ income = $32,000
What Kate does:
Kate reports $48,500 on her separate return at the end of the year:- Half her first six months’ income = $12,500
- Half George’s first six months’ income = $14,000
- All her second six months’ income = $22,000
Accounting for withholding and estimated tax payments
Withholding credit
Claim the credit for income tax withholding in the same way you reported the income.
- Community income: Each of you reports half the income and half the withholding on your separate returns.
- Separate income: The spouse who earned the separate income should report all that income and the related withholding.
Estimated tax payments
From community funds: Credit is split evenly between spouses. However, due to internal processes, the credit goes to the spouse the payment was made for.
From separate property funds: Credit goes to the spouse the payment was made for.
Guidance for Community Income
Income is treated the same as any other kind of property.
General rule and example
- All income earned that either spouse earns is community property:
- Unless otherwise specified in a written agreement between the spouses.
- So long as both spouses are domiciled in a community property state.
Income that comes from community property — such as the sale of real estate — follows this general rule.
Income that comes from separate property can also be community property.
Phil and Yvonne are Idaho residents and are domiciled in Idaho. Phil earned $30,000 in wages. Yvonne earned $60,000 in wages.
Phil also inherited some stock. The stock is only in his name. He kept the stock and the dividend income from the stock separate from the community funds. The stock generated $10,000 in dividend income for Phil.
Phil and Yvonne file “married filing separately.”
If no written agreement exists
If no agreement exists regarding the stock and the dividend income, Phil and Yvonne each report $50,000 of income ($15,000 from Phil’s wages, $30,000 from Yvonne’s wages, and $5,000 from the dividend income).
If a written agreement exists
If there’s a written agreement that the income from dividends is separate income, the $10,000 retains its separate nature.
- Phil reports $15,000 from his wages, $30,000 from Yvonne’s wages, and $10,000 dividends, for a total of $55,000.
- Yvonne reports $15,000 from Phil’s wages and $30,000 from her wages, for a total of $45,000.
Miscellaneous types of income
Real estate income
Income from real property (real estate) can be either separate or community income. It depends on the laws of the state where the property is located. Unless otherwise agreed to by the spouses in writing, income from real estate located in Idaho is community income. This is true regardless of where you and your spouse are domiciled and whether the property is separate or community property.
For example, the real property is in Idaho and both you and your spouse are domiciled in a separate-property state. Idaho treats the income from the real property as community income.
Withdrawals from IRAs and ESAs
Distributions from individual retirement accounts (IRAs) and Coverdell Education Savings Accounts (ESAs) aren’t taxed according to the normal community-property rules. Distributions from these accounts are taxable only to the spouse who receives the income.
Retirement plan and pension income
Generally, distributions from retirement plans and pensions are considered community income or separate income based on both these factors:
- Periods of participation in the retirement plan or pension while you were married
- Where the employee (you or your spouse) was domiciled during these periods
If you’re married and domiciled in Idaho during the participation period, the distributions will be community income.
QDROs
The right to receive retirement income is sometimes specifically addressed in a qualified domestic relations order (QDRO) when there’s a divorce or legal separation. The order awards a spouse or former spouse part of the retirement plan benefits as if he or she was the plan participant. For more information on QDROs, see IRS Publication 575.
Exceptions to community income
Internal Revenue Code (IRC) section 66 provides exceptions regarding when it treats certain community income as separate income:
- IRC section 66(a): You and your spouse lived apart for the entire year, aren’t filing a joint return for that year, one or both of you had earned income for the year that is community income, and no portion of the earned income was directly or indirectly transferred between you before the end of the year.
- IRC section 66(b): Community property laws will be disregarded and the income will be treated as the separate income of a person who acted as if an item of community income was solely his or hers, and who failed to notify his or her spouse of the nature and amount of the income before the due date of the return, including extensions, for the year the income was earned.
- IRC section 66(c): Either you or your spouse didn’t know of, and had no reason to know about an item of community property earned by the other spouse, you aren’t filing a joint return for that year, and considering all facts and circumstances it’s inequitable to include that item of community income in you or your spouse’s gross income.
These subsections could be relevant because federal taxable income is the starting point for calculating your Idaho taxable income. (See Idaho Code section 63‑3011C.) Very specific conditions must exist, so read IRC section 66 carefully. See IRS Publication 555, Community Property, the “Community Property Laws Disregarded” section.
Married People and Community Property
Idaho is a community-property state. These laws apply to anyone domiciled in Idaho or owning real property (real estate) located in Idaho. The laws affect how you and your spouse file your federal and state income tax returns.
The information below only discusses treatment of community property under Idaho law. Other community-property states have their own community-property laws.
Domicile
Your domicile is the place you have your permanent home and where you intend to return whenever you’re away.
You and your spouse can be domiciled in different states. The laws of the state where a spouse is domiciled determine how the law views assets in a marriage.
Community property
Community property is owned by the “community” of the marriage, which means both spouses. Generally, community property is property — including income — that either you or your spouse acquires during the marriage. But community property excludes some property you acquire during marriage.
Separate property
Separate property is any of these things:
- Property that you or your spouse owned separately before your marriage.
- Property that you or your spouse received separately as a gift or inheritance, even if you received it after you were married.
- Property either you or your spouse bought using separate-property funds.
- Money either you or your spouse earned while domiciled in a separate-property state.
- All property listed as separate in a valid written prenuptial or postnuptial agreement.
You must keep separate property separate from other assets. Separate property can lose its separate character despite any written agreements if, for example, you do either of the following:
- You or your spouse uses the property for community purposes.
- You or your spouse mixes separate income and expenses with community income and expenses.
Please note that income from separate property is considered community property if you, your spouse, or you and your spouse are domiciled in Idaho, unless you and your spouse have agreed in writing to keep this income separate.
Laws and rules
Learn more about community property:
- Idaho Code section 32‑906, Domestic Relations — Husband and Wife – Separate and Community Property
Income Tax for Active-Duty Military
his page covers information for active-duty military, their spouses, and their children.
If you’re a retired military member with a federal pension, see if you qualify for the Idaho Retirement Benefits Reduction.
Military members
Idaho residents stationed in Idaho
The military income that an Idaho resident stationed in Idaho earns is subject to Idaho income tax. See Form 40, Idaho Individual Income Tax Return (for Idaho residents)
Idaho residents stationed outside of Idaho
Active-duty military income that an Idaho resident earns outside Idaho isn’t subject to Idaho income tax. The full-time duty must be continuous and uninterrupted for 120 consecutive days or more. See:
Nonresidents stationed in Idaho
If your military home of record is a state other than Idaho but you’re stationed in Idaho, you’re considered a “military nonresident.” Your active duty military income isn’t subject to Idaho income tax. However, all other types of Idaho source income (for example, a part-time job) are subject to Idaho income tax.
Idaho nonresidents must file an Idaho income tax return if gross income from Idaho sources is more than $2,500. More examples of Idaho sources of income include:
- Idaho nonmilitary salaries, wages, and commissions of the service member
- Income from unincorporated business activity that either spouse conducts in Idaho, unless it’s the spouse’s personal service business
- Distributive share of income or loss from a partnership or S corporation transacting business in Idaho
- Rents and royalties from real and tangible personal property located in Idaho by either spouse
- Sale or exchange of Idaho real property
- Winnings from lottery tickets purchased in Idaho
Extensions to file taxes when on active duty in a combat zone
Idaho follows the Servicemembers Civil Relief Act and Internal Revenue Code section 7508 for Idaho individual income taxes. Below are some of the ways the federal and state laws affect you if you’re an Idaho military member called to active duty in a combat zone.
Extended due date
- All tax filing deadlines are extended for at least 180 days after your last day in a combat zone. If you choose to file while you’re in a combat zone, see below for signature information.
- If you pay your income tax in full by the end of the deferral period, you won’t owe interest or penalty for that period.
- If you’re an enlisted member or warrant officer, you don’t owe tax on military pay received for any month in which you served in a combat zone. If you’re a commissioned officer, the monthly exclusion is capped at the highest enlisted pay, plus any pay you received for hostile fire or imminent danger. The excluded pay shouldn’t be included in the wages reported on your Form W-2.
- Federal law doesn’t cover business tax returns, employment taxes, or sales and use tax obligations.
- On your Idaho return, you must write “COMBAT ZONE” and the date of deployment in red on top of the return.
Filing while serving in a combat zone
If you’re serving in a combat zone and can’t sign your joint income tax return, your spouse can sign the return for you without a power of attorney. Your spouse should attach a signed statement to your return that explains you’re serving in a combat zone. If you’re filing an electronic return, keep a copy of the statement with your federal Form 8453.
Federal taxes and service members
You can find more information on how federal taxes affect members of the armed forces in IRS Publication 3, Armed Forces’ Tax Guide.
For more information about federal taxes and service members, visit the Internal Revenue Service’s Military Web page.
Civilian spouses or children of military nonresidents
When a civilian spouse or children of a military members move to Idaho, they become Idaho residents, or part-year residents if they reside in Idaho for less than the entire year. Income from all sources that your civilian spouse or children earn while residents of Idaho is subject to Idaho income tax, unless the exemption below applies.
Tax residency rules for service members and their spouses
Section 19 of the Veterans Auto and Education Improvement Act of 2022 (H.R.7939) made amendments to the tax residency rules in the Servicemembers Civil Relief Act. Under these amendments, military service members and their spouses may elect, for tax purposes, to be considered residents and domiciled in either the service member’s state of domicile, the spouse’s state of domicile, or the state of the service member’s permanent duty station.
How to claim the exemption
- If you qualify for the service member’s spouse income tax exemption, you can claim an exemption on your wages from Idaho withholding by filling out Form ID-MS1, Employee’s Idaho Military Spouse Withholding Exemption Certificate, and giving it to your employer.
- Your employer will keep a copy.
- You’ll need to complete a new form each year you qualify.
Filing
Idaho works with some tax software providers that allow you to do your taxes and file for free if you meet certain requirements. See E-filing Your Income Taxes for Free.
If you don’t qualify for free filing, see other software providers here.
Noncitizens
For income tax purposes, someone who isn’t a U.S. citizen is called an “alien.” Aliens are classified as nonresident aliens and resident aliens. See IRS Publication 519, U.S. Tax Guide for Aliens, to help determine whether you’re a nonresident or resident alien.
When making purchases in Idaho, you must pay sales tax and use tax, regardless of your citizenship unless you’re assigned to a foreign mission.
Income tax filing requirements
Nonresident aliens
If you’re a nonresident alien, you must file an Idaho return if your gross income from Idaho sources is more than $2,500.
If you file Form 1040NREZ or Form 1040NR with the Internal Revenue Service (IRS), you must use Idaho Form 43. Mark your residency status on the return as “Nonresident.”
You need to attach copies of these documents to your Idaho return when you file:
- Federal Form 1040NR or 1040NR-EZ
- All W-2 forms
- All 1042-S forms
- Form 8843, if filed with the IRS
Resident aliens
A resident alien is generally subject to Idaho tax in the same manner as a U.S. citizen. If you meet the Idaho filing requirements, you must file Idaho Form 40 or Form 43. Your Idaho residency status determines which form you file.
Forms/publications
- Form 40, Idaho Individual Income Tax Return
- Form 43, Idaho Part-Year Resident & Nonresident Income Tax Return
- Instructions packet including tax tables for Individual Income Tax
- Form ID-VP, Income Tax Payment Voucher
- Full list of current individual income tax forms and all required schedules »
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
Claiming deductions and credits
Nonresident aliens can claim the same subtractions and credits available to other nonresidents. However, nonresidents don’t qualify for all the subtractions and credits available to Idaho residents. Among those allowed, the ones that nonresident aliens most commonly claim include:
- The child and dependent care deduction
- The health insurance premiums deduction
- The credit for contributions to Idaho educational entities
- The credit for contributions to Idaho youth and rehabilitation facilities
You can find a description of these subtractions and credits in the instructions packets for Idaho Form 43 or Form 39NR.
Claiming standard or itemized deductions
Most nonresident aliens can’t claim the standard deduction on their Idaho returns. However, students and business apprentices from India can claim the standard deduction according to their tax treaty.
Nonresident aliens can deduct certain itemized deductions on their Idaho returns. These deductions include charitable contributions to qualifying U.S. organizations, casualty and theft losses. Any state and local income taxes deducted on the federal return must be added back on the Idaho return.
Income tax exemptions
Idaho conforms to the Internal Revenue Code (IRC), which no longer allows personal exemptions.
U.S. treaty benefits
Nonresident aliens can claim tax treaty benefits on their Idaho tax return. Idaho honors all tax treaties recognized by the United States. Gross income amounts exempt by treaty are not included in the gross income filing requirement for Idaho. Refer to IRS Publication 901, U.S. Tax Treaties.
Example: Jose Garcia, a nonresident alien from Venezuela, earned $6,000 in wages while working in Idaho for a year. Since his wages exceed the $2,500 filing requirement, Mr. Garcia would normally have to file an Idaho return. However, the tax treaty with Venezuela exempts $5,000 of the wages, so only the remaining $1,000 is included in the gross income filing requirement. Mr. Garcia is not required to file an Idaho return.
Married nonresident aliens
Your Idaho tax filing status must be the same as the filing status on your federal return. For most taxpayers, the filing status is married, filing separate.
If you’re married to a U.S. citizen and choose to be treated for federal income tax purposes as a U.S. resident for the entire year, you’ll file a joint return. You must attach a copy of the statement that declares your choice to be treated as a U.S. resident to the Idaho return.
You must disregard community property laws if:
- Both you and your spouse are nonresident aliens, or
- One of you is a nonresident alien and the other is a U.S. citizen or resident and the nonresident alien spouse doesn’t choose to be treated as a U.S. resident.
Laws and rules
- Idaho Code section 63-3030, Persons required to make returns of income
- Idaho Code section 63-3013, Resident
- Idaho Code section 63-3013A, Part-year resident
- Idaho Code section 63-3014, Nonresident
- Income Tax Rule 31, Aliens
- Income Tax Rule 40, Part-year resident
- Income Tax Rule 45, Nonresident