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.