Idaho Idaho Income Tax Instruction Booklet
Extracted from PDF file 2021-idaho-income-tax-instructions.pdf, last modified November 2021
Idaho Income Tax Instruction Booklet2021 Great people Helping you Serving Idaho Individual Income Tax Forms and Instructions Resident Part-year Resident or Nonresident Form 40 Form 43 Form 39R Supplemental Schedule Form 39NR Supplemental Schedule For more information: tax.idaho.gov Questions (208) 334-7660 in the Boise area (800) 972-7660 toll free EIN00046 11-15-2021 Hearing Impaired (TDD) (800) 377-3529 Individual Income Tax General Information 2021 Avoid a Tax Surprise for Next Year! • Recent tax laws have changed the calculation for income taxes withheld from your paycheck • Check your withholding today at tax.idaho.gov/w4 Where’s My Refund? Track Your Refund Progress 24/7 Visit tax.idaho.gov/refund to get the most up-to-date information about your income tax refund. Our online service is the easiest and fastest way to track your refund. Typical Refund Timeframes • E-filed? Expect your refund about seven to eight weeks after you receive an acknowledgment that we have your tax return. • Filed on paper? Expect your refund about 10 to 11 weeks after we receive your return. We must manually enter information from paper returns into our database. Refund Exceptions • First time you filed an Idaho income tax return? It takes about three weeks to enter your account into our system. Until that time, we’ll report your return as “not entered in system.” Add those three weeks to the estimates above to determine your refund timeframe. • Received a letter from us asking for more information? Your refund will be delayed until we get the requested information. It then will take about six weeks to finish the process. Rapid Response = Faster Refund All income tax returns go through fraud detection reviews and accuracy checks before we issue any refunds. After you file your return, the Tax Commission might send you letters asking you to: • Verify your identity • Verify that you filed a return • Provide more information Pay Online Quickly and Easily Use our fast and easy Quick Pay option to make online payments at tax.idaho.gov/quickpay. Get Idaho Forms • Get forms online at tax.idaho.gov. • Pick them up at one of our offices. Find locations at tax.idaho.gov/visit. • Call us at (208) 334-7660 in the Boise area or toll free at (800) 972-7660. EIN00046 11-15-2021 Page 1 of 64 General Information What’s New for 2021 • Every part-year resident with a total of more than $2,500 gross income from: All sources while a resident, and Idaho sources while a nonresident • Every nonresident with more than $2,500 gross income from Idaho sources Conformity to Internal Revenue Code (IRC) Idaho conforms to the IRC as of January 1, 2021. Idaho doesn’t conform to bonus depreciation for assets acquired after 2009. Tax Rate Reduction Effective January 1, 2021, all tax rates have been decreased. Individual income tax rates now range from 1% to 6.5%, and the number of tax brackets has been reduced from seven to five. Preserving Limited Losses Idaho taxpayers can keep the benefit of losses that exceed the federal limit and carry them forward as an Idaho net operating loss up to 20 years. This provision is retroactive to January 1, 2018. Bonus Depreciation Add-back Limited to Benefit Idaho taxable income only includes the bonus depreciation add-back to the extent the depreciation could be used on the federal return. Passive loss and other basis carryovers will have to be adjusted accordingly. State and Local Tax Workaround Allowed A pass-through entity can elect to pay Idaho tax at the entity level as a workaround for the $10,000 limit on the federal deduction for state and local taxes. The annual election and related tax payment must be made by April 15 of the following year. Who Must File • Every Idaho resident who must file a federal income tax return 2021 To file an Idaho return, first complete your federal return. You need the federal return information to complete your Idaho return. Your Idaho filing status must be the same as your federal filing status. For example, if you file a joint federal return you also must file a joint Idaho return. The tax year and accounting method used on your Idaho return must match those used on your federal return. If a taxpayer dies before filing a current year return, the taxpayer’s spouse or personal representative must file the return. A personal representative can be an executor, administrator, or anyone who’s in charge of the deceased taxpayer’s property. Gross income means all income you received in the form of money, property, goods, and services that aren’t exempt from tax. It’s measured before subtracting allowable deductions. Gross income includes, but isn’t limited to: • Income from wages, salaries, tips, interest, and dividends that isn’t exempt from tax • Self-employment income before expenses • Farm income before expenses • Rental income before expenses • The shareholders’ or partners’ share of gross income from S corporations and partnerships Idaho Resident Filing Requirements If your filing status is: And you are: And your gross income is: Married filing jointly Under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses) $25,100 $26,450 $27,800 Head of household Under 65 65 or older $18,800 $20,500 Single Under 65 65 or older $12,550 $14,250 Qualifying widow(er) with dependent child Under 65 65 or older $25,100 $26,450 Married filing separately Any age $5 If you’re a resident and are filing a federal income tax return only to pay self-employment tax and aren’t otherwise required to file a federal income tax return, you aren’t required to file an Idaho income tax return. EIN00046 11-15-2021 Page 2 of 64 General Information 2021 (continued) If your parent or someone else can claim you as a dependent, use the following information to see if you must file a return. You must file a return if any of the following apply: Unearned income Single Dependents Over $1,100 More than the larger of $1,100 or your earned Over $12,550 income plus $350 Over 65 or blind Over $2,800 Over $14,250 More than the larger of $2,800 or your earned income plus $2,050 Over 65 and blind Over $4,500 Over $15,950 More than the larger of $4,500 or your earned income plus $3,750 Over 65 or blind Over 65 and blind • • • • • Over $1,100 Over $2,450 Over $3,800 Over $12,550 Over $13,900 Over $15,250 Unemployment compensation Certain scholarship and fellowship grants Gains from sales of property Pensions and annuities Taxable Social Security benefits Scholarships used for tuition, fees, supplies, books, and equipment required for courses leading to a degree aren’t included in gross income. Unearned income includes: • Taxable interest • Ordinary dividends • Capital gains distributions • Unemployment compensation • Taxable Social Security benefits, pensions, and annuities • Distributions of unearned income from a trust Earned income includes: • Salaries • Wages • Tips • Professional fees • Taxable scholarships and fellowship grants Gross income is the total of your unearned and earned income. EIN00046 Gross income Under 65 and not blind Under 65 and not blind Married Dependents Earned income 11-15-2021 At least $5 and your spouse files a separate return and itemizes More than the larger of $1,100 or your earned income plus $350 At least $5 and your spouse files a separate return and itemizes More than the larger of $2,450 or your earned income plus $1,700 At least $5 and your spouse files a separate return and itemizes More than the larger of $3,800 or your earned income plus $3,050 Which Form to Use Use Form 40 if you’re a: • Resident, or • Resident in the military Use Form 39R if you file Form 40 and claim any additions, subtractions, or certain credits. Use Form 43 if you’re a: • Part-year resident • Nonresident, or • Nonresident alien for federal purposes and are required to file an Idaho income tax return Use Form 39NR if you file Form 43 and claim any additions, subtractions, or certain credits. When to File and Pay File your return and pay any tax due: • By April 18, 2022, for the 2021 calendar year, or • By the 15th day of the fourth month following the close of the fiscal year if you file on a fiscal year basis Idaho doesn’t require estimated tax payments. You can prepay at any time at tax.idaho.gov/epay or by mailing your payment with Form 51. Page 3 of 64 General Information Where to File Mail the return and payment to: Idaho State Tax Commission PO Box 56 Boise ID 83756-0056 If you’re mailing a payment without a return, send your payment with Form ID-VP to: Idaho State Tax Commission PO Box 83784 Boise ID 83707-3784 If you’re sending your return using a delivery service that requires a physical address, use the following: Idaho State Tax Commission 11321 W Chinden Blvd Bldg 2 Boise ID 83714 What to Include and What to Keep Include Include all schedules and other forms in the following order: 1. Form 40 or 43 2. Form 39R or 39NR 3. Form 75 4. Form 44 5. Additional schedules in numerical order 6. Additional forms in alphabetical order 7. W-2s and/or 1099s placed on top of Form 40 or 43 8. Complete copy of federal return Include legible copies of Form W-2s, 1099s, and other information forms that show Idaho withholding with your return. If you’re claiming credit for taxes paid to another state, you must include Idaho Form 39R or 39NR and a copy of the other state’s income tax return. If the credit applies to more than one state, use a separate Form 39R or 39NR for each state. Keep Keep copies of any receipts, tax forms, worksheets, and other records to support any income, deduction, exemption, and credit you’ve reported. Rounding Round the amounts on your return to the nearest whole dollar. Round down if under 50 cents, round up if 50 cents or more. EIN00046 11-15-2021 2021 (continued) Extension of Time to File This isn’t an extension of time to pay your taxes—it’s an extension to file your return. You automatically get an extension of up to six months to file your return if you’ve paid at least: • 100% of what you paid for state income taxes the year before, or • 80% of your current year’s tax liability You can avoid a penalty for late filing, but will be charged interest on the remaining tax until it’s paid. Complete the worksheet on Form 51 to see if you meet the extension requirements. To avoid a penalty, pay online at tax.idaho.gov/epay or mail your payment with Form 51 by April 18, 2022. If you qualify for an extension to file your Idaho return, send the return and pay in full by October 17, 2022. Penalties Idaho law provides penalties for not filing tax returns by the due date, not paying tax due on time, and not prepaying enough on extension returns. For more information or to calculate a penalty, see our Penalties and Interest page at tax.idaho.gov/penalties. Interest We charge interest on the amount of tax due from the original due date of the return until paid at the rate of 3% per year (rate effective for 2022). Residency Are you a resident, a part-year resident, or a nonresident? The following will help you decide: • You’re an Idaho resident, even though you live outside of Idaho if all of the following are true: You think of Idaho as your permanent home Idaho is the center of your financial, social, and family life Idaho is the place you intend to return to when you’re away • You’re also an Idaho resident if the following are true: • You maintain a home in Idaho the entire year, and You spend more than 270 days in Idaho during the tax year Page 4 of 64 General Information 2021 (continued) • You’re a part-year resident if you moved into or out of Idaho during the tax year. You’re still a resident if: You temporarily moved outside of Idaho, or You moved back to Idaho after a temporary absence • You’re a nonresident if your permanent home is outside of Idaho all year. for more than 30 consecutive days to respond to a national emergency declared by the President and supported by federal funds • A member of the commissioned corps of the National Oceanic and Atmospheric Administration in active service • A member of the commissioned corps of the Public Health Service in active service • You’re considered a nonresident if all of the following are true: You’re an Idaho resident who lived outside of Idaho for at least 445 days in a 15-month period After satisfying the 15-month period, you spent less than 60 days in Idaho during the year You didn’t have a personal residence in Idaho for yourself or your family during any part of 2021 You didn’t claim Idaho as your federal tax home You weren’t employed on the staff of a U.S. senator or representative You didn’t hold an elective or appointive office of the U.S. government other than the armed forces or a career appointment in the U.S. Foreign Service Military Home of Record The qualified servicemember’s residence is considered to be the same as the servicemember’s home of record. Note: The above exception to being an Idaho resident doesn’t apply to a qualified servicemember. Community Property Idaho is a community property state. Idaho’s community property laws generally treat property and income acquired during marriage differently than other property. For more information visit tax.idaho.gov/commprop. Military Personnel Idaho law generally follows federal law regarding which type of military pay (active duty, disability, reserve, or retirement) is taxable. Qualified Servicemember A qualified servicemember is: • Any member of the U.S. military • A member of the National Guard called to active duty service by the President of the United States or the U.S. Secretary of Defense EIN00046 11-15-2021 Federal Military Spouses Residency Relief Act The earned income of qualifying spouses of Idaho servicemembers isn’t subject to Idaho income tax because of the federal Military Spouses Residency Relief Act. As a servicemember’s spouse, you qualify for this exemption if: • You’re married to a servicemember who’s serving in Idaho and the servicemember registered their home of record in another state, and • You’ve moved to Idaho with the servicemember and have the same domicile (permanent residence) as the servicemember’s home of record If you qualified for the Idaho income tax military spouse exemption, report any Idaho withholding on Form 43, line 66. Idaho Residents on Active Duty — Stationed in Idaho If Idaho is your military home of record and you’re on active duty stationed in Idaho, Idaho taxes all of your military wages and all nonmilitary income regardless of the source. File Form 40. Idaho Residents on Active Duty — Stationed Outside of Idaho Report all your Idaho income to Idaho if you meet all the following criteria: • You joined the military as an Idaho resident • Idaho is your military home of record • You were on active duty for 120 or more consecutive days • You were stationed outside of Idaho for all or part of the year File Form 40 if you’re single or if you’re married and your spouse also is an Idaho resident. Page 5 of 64 General Information File Form 43 if you’re married and your spouse is an Idaho nonresident, part-year resident, or military nonresident. • Check the “Idaho Resident on Active Military Duty” residency status box for yourself • Check the applicable residency status box for your spouse Idaho residents in the military don’t lose Idaho residency or domicile by being absent because of military orders. A qualified servicemember isn’t a resident of, or domiciled in, Idaho just by being stationed in Idaho. Nonresidents on Active Duty Stationed in Idaho Idaho doesn’t tax your military income if your military home of record isn’t Idaho and you’re on active duty stationed in Idaho for all or part of the year. Idaho taxes nonmilitary income from Idaho sources. File Form 43 if your gross income from Idaho sources is more than $2,500. The instructions for Form 43 begin on page 15. National Guard Members Called to Active Duty in a Combat Zone Idaho follows federal law and provides income tax relief for servicemembers on active duty in combat zones. Below is a summary of how these laws affect Idaho National Guard members: • All tax filing deadlines are extended for at least 180 days after your last day in a combat zone • No interest or penalty accrues for nonpayment of individual income taxes while you’re in a combat zone • If you’re enlisted or a warrant officer, you don’t owe tax on military pay received while in a combat zone. If you’re a commissioned officer, the monthly exclusion is capped at the highest enlisted pay plus any hostile fire or imminent danger pay received • Federal law doesn’t cover business tax returns, employment taxes, or sales/use tax obligations • Write “COMBAT ZONE” and the date of deployment on top of the tax return you’re filing 2021 (continued) If you have no other income, you aren’t required to file. If you have other income in an amount that meets the federal filing requirement, you must file an Idaho return. For specific instructions see Form 39R or 39NR. Amended Returns Use Form 40 or 43 to amend your return. Check the amended return box at the top of the form and enter the reason for amending. See Amended Return on page 7 or 15 for more information. If your taxable income or tax credits change because of an audit, you must send written notice including an amended return to the Tax Commission within 120 days of the final determination. Include copies of all federal and/or state schedules. If you owe additional Idaho tax and don’t send written notice within 120 days of the final federal determination, we apply a 5% negligence penalty. We charge interest on any tax due. If the final determination results in an Idaho refund, you must file an amended Idaho income tax return with the written notice. If the statute of limitations is closed, you have one year from the date of the final determination to file for the refund. Deadlines to Claim a Refund To qualify for a refund, you must file a return within: • Three years from the original return filing date, or • Three years from the original return due date (not including extensions) For amended returns, you must file a claim for refund within: • Three years from the original return filing date, or • One year from the time the federal audit was closed (if the amended return is because of a federal audit) American Indians You can deduct all your income from working on the reservation only when you meet all these criteria: • You’re enrolled in a federally recognized tribe • You live and work on the reservation • The income is included on the tax return EIN00046 11-15-2021 Page 6 of 64 Form 40 — Instructions Individual Income Tax Return 2021 Instructions are for lines not fully explained on the form. General information instructions beginning on page 2 also apply to this form. Amended Return You can use this form as an original return or an amended return. Grocery Credit Refund Only If you’re not required to file an income tax return but are filing Form 40 to receive a grocery credit refund, you don’t need to include a copy of a federal return. If you or your spouse are over age 65, see Form 24. If you’re filing this form as an amended return, check the box at the top of the form. Enter the number from the following list that best describes your reason for amending: 1. Federal Audit 2. Net Operating Loss Carryback – Include Form 56 or a schedule showing the application of the loss 3. Federal Amended – Include a complete copy of your amended federal return 4. Other – Include an explanation You must complete Form 40 as follows: • Complete the top of the form through line 6 • Write “NRF” (Not Required to File) on line 7 • Skip lines 8 through 11 • Complete line 12a if you (or your spouse) are age 65 or older • Skip lines 12b through 31 • Cross through the $10 on line 32, Permanent Building Fund, and write “NRF” • Skip lines 33 through 42 • Enter your grocery credit amount on line 43 using the grocery credit worksheet on page 11 • Complete applicable lines 44 through 57 • Skip lines 58 through 61 • Complete the bottom of Form 40 below line 61 Heading Write your name, address, and Social Security number (SSN) in the spaces provided. If you don’t have an SSN, write your Individual Tax Identification Number (ITIN). If you don’t have or aren’t required to have an SSN or ITIN, enter “NRA” (Nonresident Alien) in the SSN space. If you’ve applied for an ITIN and haven’t received it from the Internal Revenue Service (IRS) before you file your Idaho return, enter “Form W-7” in the space provided for the SSN. If you enter “Form W-7,” include a copy of your federal Form W-7 with your return. Once you receive your ITIN from the IRS, you must provide it to the Tax Commission before your return can finish processing. If you receive an SSN after using an ITIN, you must use the SSN and stop using your ITIN. It’s your responsibility to notify the Tax Commission so your return can finish processing. Be sure that your return and W-2 forms show the correct SSN or ITIN. An error in your SSN or ITIN will delay your refund. EIN00046 11-15-2021 Complete the entire form and schedules using the corrected amounts. Don’t include a copy of your original return with the amended return. Lines 1 through 5 Filing Status Check the box indicating your Idaho filing status. Refer to General lnformation on page 2 for more information on filing status. Line 6 Household Line 6a. Yourself. Enter “1” unless someone else claims you as a dependent on their return. Line 6b. Spouse. Enter “1” if you’re filing a joint return. Enter “1” if your spouse died during 2021 and you’re filing a joint return. Leave the line blank if someone else claims your spouse as a dependent on their return. Line 6c. Dependents. List your dependents. Include their SSN and birthdate. If you have more than four dependents, continue on Form 39R, Part F. Enter the total number of dependents on the line. If you’re the noncustodial parent of a dependent and are claiming them on your return, include federal Form 8332 or a copy of the court order with your return. See irs.gov for more information. Line 6d. Total. Add lines 6a through 6c. Line 7 Federal Adjusted Gross Income Enter your federal adjusted gross income from Form 1040 or 1040-SR, line 11. Line 11 Total Adjusted Income If your total adjusted income is negative, see Form 56 and instructions. Page 7 of 64 Form 40 — Instructions Tax Computation Line 12a Age 65 or Older If you’re 65 or older, check the box for “Yourself.” If you’re filing a joint return and your spouse is 65 or older, check the box for “Spouse.” If your 65th birthday was on January 1, 2022, you may consider yourself 65 on December 31, 2021. The boxes you check must match your federal return. Line 12b Blind Check the box for “Yourself” if you’re blind. If you’re filing a joint return and your spouse is blind, check the box for “Spouse.” The boxes you check must match your federal return. Line 12c Claimed Dependent Check this box if someone else, such as a parent, can claim you as a dependent. Lines 13 – 16 Standard Deduction Most people can find their standard deduction by looking at the instructions to the left of Form 40, line 16. Use the Standard Deduction Worksheet beginning on this page to calculate your standard deduction if: • You check any boxes on lines 12a through 12c, or • Someone can claim you or your spouse, if filing jointly, as a dependent You can use either your federal itemized deductions or standard deduction, whichever benefits you more. You Must Itemize If: • You’re married, filing a separate return (filing status 3), and your spouse itemizes • You had dual status as a nonresident alien for part of 2021 and during the rest of the year, you were a resident alien or a U.S. citizen You don’t have to itemize if you file a joint return with your spouse who was a U.S. citizen or resident at the end of 2021, and you and your spouse agree to be taxed on your combined worldwide income. Idaho requires that state or local income or general sales taxes shown on federal Schedule A be subtracted from your total itemized amount before you use this figure to reduce your income. Because of this addback, it may be more beneficial to itemize for federal purposes but use the standard deduction for Idaho. EIN00046 11-15-2021 2021 (continued) If the IRS considers you or your spouse a nonresident alien and you aren’t from India, your standard deduction is zero. If you’re nonresident aliens from India, use the standard deduction indicated for your filing status. If line 15 is more than line 16, use your itemized deductions on line 15. If line 16 is more than line 15, use your standard deduction on line 16. Itemized Deductions If you use federal Schedule A to itemize, use the following instructions for line 14: • If federal Schedule A, line 5d, is: $10,000 or less ($5,000 if married filing separately), enter the amount from federal Schedule A, line 5a. More than $10,000 ($5,000 if married filing separately), subtract lines 5b and 5c from line 5e, and enter the amount here. Enter zero for any result less than zero. Federal Foreign Tax Credit: If you claim the federal foreign tax credit, Idaho allows that amount as a deduction. Idaho doesn’t have a credit that matches the federal foreign tax credit. Add the amount you claimed for the federal foreign tax credit to your Idaho itemized deductions. Standard Deduction Worksheet 1. Enter the amount shown below for your filing status: • Single or married filing separately, enter $12,550 • Married filing jointly or qualifying widow(er), enter $25,100 • Head of household, enter $18,800 ...... 2. Can you be claimed as a dependent? No. Enter the amount from line 1 on line 4. Skip line 3. Yes. Go to line 3. 3. Is your earned income* more than $750? Yes. Add $350 to your earned income. Enter the total. No. Enter $1,100 .............................. 4. If you can be claimed as a dependent, enter the smaller of lines 1 or 3. If born after January 1, 1957, and not blind, skip to line 6. Otherwise, go to line 5 ............... Page 8 of 64 Form 40 — Instructions 5. If born before January 2, 1957, or blind, multiply the total number of boxes checked on Form 40, lines 12a and 12b, by $1,350 ($1,700 if single or head of household) ............................................. 6. Enter the cash charitable contributions from federal Form 1040, line 12b or federal Schedule A, line 11. 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 ............................... 7. Add lines 4 through 6. Enter the total here and on Form 40, line 16 .......................... *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. See Gross Income in General Information. Line 18 Qualified Business Income Deduction Enter the amount from federal Form 1040 or 1040-SR, line 13. Line 20 Tax Enter the tax on this line. If line 19 is less than $100,000, use the tax tables beginning on page 53. If line 19 is $100,000 or more, use the tax rate schedules on page 64. Be sure you use the correct column in the tax table or the correct schedule for your filing status. See the example at the beginning of the tax table. If you don’t meet the filing requirement (see page 2) and are filing only to receive a refund of withheld taxes, write “NRF” (Not Required to File) on this line. Credits Line 22 Income Tax Paid to Other States When both Idaho and another state tax the same income, you may qualify for a credit for tax paid to the other state. Use Form 39R to compute the credit. You must include a copy of the other state’s income tax return and Form 39R. If the credit applies to more than one state, use a separate Form 39R for each state. See instructions, page 36. You may qualify for a credit for tax paid to another state by a pass-through entity. If a pass-through entity paid tax to another state on your behalf, it should report that information to you. EIN00046 11-15-2021 2021 (continued) Examples of income that may be taxed by both Idaho and another state include: • Wages earned in another state that has an income tax, such as Oregon or Utah, while you’re living in Idaho • Income from a business or profession earned in another state that has an income tax while you’re a resident of Idaho Line 23 Total Credits for Charitable Contributions and Live Organ Donations You may qualify for a credit if you donated a qualified organ that’s transplanted into another individual, or if you made a contribution to a: • Qualified Idaho educational entity • Center for independent living • Youth or rehabilitation facility or its foundation, or • Nonprofit substance abuse center licensed by the Idaho Department of Health and Welfare Complete Form 39R, Part D and see page 37 for specific instructions. Enter the total allowed credit from Form 39R, Part D, line 4, and include Form 39R with your return. Line 25 Idaho Child Tax Credit Worksheet To qualify for the Idaho Child Tax Credit, the child must: • Be your qualifying child, and • Be age 16 or under as of December 31, 2021 If you don’t have a qualifying child, you can’t claim the credit. For divorced parents or parents who don’t live together, the custodial parent claims the qualifying child. The noncustodial parent may claim the child if: • A court has awarded the right to claim the child for tax purposes to the noncustodial parent, or • The custodial parent signs a written declaration that the noncustodial parent can claim the child for the child tax credit The noncustodial parent must include a copy of the court order or the written declaration with their income tax return. Note: This credit is limited to your tax liability after any credit for tax paid to other states and credits from Forms 39R and 44. Page 9 of 64 Form 40 — Instructions Worksheet 1. Enter the number of your qualifying children* ................................................. 2. Multiply line 1 by $205 ........................... 3. Enter the amount from Form 40, line 20 .... 4. Enter the amount from Form 40, line 22 .... 5. Enter the amount from Form 40, line 23 .... 6. Enter the amount from Form 40, line 24 .... 7. Line 3 minus lines 4 through 6. If less than zero, enter zero .............................. 8. Enter the lesser of lines 2 or 7 here and on Form 40, line 25 ......................... *See federal Form 1040 instructions for more information on qualifying children. Other Taxes Line 28 Fuels Tax Due If you buy gasoline, aircraft fuel, or special fuels (diesel, propane, or natural gas) without paying the fuels tax and later use this fuel in licensed vehicles or aircraft, you owe fuels tax. Add the amounts on Form 75, Section IV, lines 3 and 4, and enter the total. Include Form 75. Line 29 Sales/Use Tax Due If you made purchases during the year without paying sales tax, you must pay use tax on these purchases. If you purchased an item from an out-of-state seller (including internet, catalog, radio, and TV purchases) and the seller didn’t collect sales tax on that purchase, you must pay the use tax directly to the Tax Commission. Multiply the total amount of purchases by 6% (.06). If you computed use tax on Form 75, add it to the use tax on other purchases and enter the total on this line. If you have an Idaho sales or use tax account, don’t report your sales or use tax on this line, but continue to report the tax on these purchases on your sales and use tax returns. Line 30 Total Tax from Recapture of Income Tax Credits If you’ve claimed Idaho tax credits that no longer qualify, you must compute the tax credit recapture. Enter the total tax from recapture of income tax credits from Form 44, Part II, line 6. Include Form 44. EIN00046 11-15-2021 2021 (continued) Line 31 Tax from Recapture of Qualified Investment Exemption (QIE) If you’ve claimed Idaho exemption of property taxes from property that no longer qualifies, you must compute the recapture of the QIE. Include Form 49ER. Line 32 Permanent Building Fund (PBF) Tax You’re required to pay the $10 PBF tax if you’re required to file an Idaho income tax return. See Who Must File on page 2. You aren’t required to pay the $10 PBF tax if: • Your gross income was less than the amount specified for your filing status. Draw a line through the $10 and enter “NRF” (Not Required to File) • You were receiving Idaho public assistance payments at the end of the tax year. Check the box on this line and draw a line through the $10. Food stamps and WIC payments don’t qualify as Idaho public assistance • You (or your spouse) are legally blind at the end of the tax year. Draw a line through the $10 Donations The donations on lines 34 through 41 are voluntary and will either reduce your refund or increase your tax due. Once you make the donation, it can’t be changed. These donations may be itemized as charitable contribution deductions on your 2022 income tax return. If you have questions about your donations, contact the agencies listed. If you’re filing an amended return, your donations can’t be less than the amounts on the original return. If you make a donation and owe tax, you must pay the tax at the time of filing. Line 34 Idaho Nongame Wildlife Fund Contributions are used to ensure the conservation and management of nongame wildlife, rare plants, and their habitats in Idaho, to promote greater awareness of and appreciation for species that aren’t hunted, fished, or trapped, and to increase opportunities to view and enjoy “watchable” wildlife. For more information visit the Department of Fish and Game website at idfg.idaho.gov/wildlife/funding or call (208) 334-2920. Line 35 Idaho Children’s Trust Fund/Prevent Child Abuse Idaho Contributions are used to protect our children, Idaho’s single greatest resource. The Children’s Trust supports work in communities throughout Idaho to Page 10 of 64 Form 40 — Instructions prevent child abuse and neglect before it ever occurs. For more information visit the Idaho Children’s Trust Fund/Prevent Child Abuse Idaho website at idahochildrenstrustfund.org or call (208) 386-9317. Line 36 Special Olympics Idaho Contributions provide support for year-round sports training and competition for children and adults with developmental disabilities in Idaho. For more information visit the Special Olympics Idaho website at specialolympicsidaho.org or call (208) 323-0482. Line 37 Idaho Guard and Reserve Family Support Fund Contributions are used to assist military reservists and their families in order to promote the overall readiness for them to support our state and federal missions. For more information visit the Idaho Guard and Reserve Family Support Fund, Inc. website at igrfamilysupportfund.org or call (208) 801-4225. Line 38 American Red Cross of Idaho Fund Contributions prevent and alleviate human suffering in the face of emergencies. For more information visit the American Red Cross website at redcross.org/local/idaho or call (800) 733-2767. Line 39 Veterans Support Fund Contributions fund programs that support Idaho veterans. For more information visit the Idaho Division of Veterans Services website at veterans. idaho.gov/publications/idaho-veterans-supportfund or call (208) 780-1300. Line 40 Idaho Food Bank Fund Contributions assist Idaho hunger relief organizations in meeting the demand for emergency food for hungry Idaho families, children, and senior citizens. For more information visit the Idaho Food Bank Fund website at www.idahofoodbankfund.org or call (208) 336-9643. Line 41 Opportunity Scholarship Program Contributions help provide need-based scholarship funds to Idaho high school graduates who attend approved higher education institutions within Idaho. For more information visit the Idaho Opportunity Scholarship Program website at boardofed.idaho. gov/scholarships/Idaho-opportunity-scholarship. EIN00046 11-15-2021 2021 (continued) Payments and Other Credits Line 43 Grocery Credit If you’re an Idaho resident, you can claim a credit for each qualifying dependent who’s an Idaho resident. If someone else, such as a parent, can claim you as a dependent, you can’t claim this credit on your return. The credit is $100 each for you, your spouse, and your dependents. You can claim an additional $20 if you’re age 65 or older on December 31, 2021, and are an Idaho resident. You can claim an additional $20 if your spouse is age 65 or older and is an Idaho resident. An individual doesn’t qualify for the credit for any month or part of a month for which that person: • Received assistance from the federal food stamp program • Was incarcerated, or • Lived illegally in the United States Members of the Armed Forces A member of the United States Armed Forces who’s domiciled in Idaho is allowed the credit. If you live in Idaho but are a nonresident under the Servicemembers Civil Relief Act, you aren’t allowed the grocery credit. A spouse or dependent of a nonresident military person stationed in Idaho may be an Idaho resident or part-year resident. The domicile of a dependent child is the same as that of the nonmilitary spouse. Complete the worksheet and enter the total computed grocery credit on line 43. See the following instructions to donate your credit. If you aren’t donating your credit, enter the computed amount in the column for line 43. Grocery Credit Worksheet Yourself: 1. Number of qualified months ....................... 2. If 65 or older, multiply line 1 by $10 If qualified for the entire year, enter $120 ...... If under 65, multiply line 1 by $8.33. If qualified for the entire year, enter $100 ...... Spouse (if joint return): 3. Number of qualified months ....................... 4. If 65 or older, multiply line 3 by $10 If qualified for the entire year, enter $120 ...... If under 65, multiply line 3 by $8.33 If qualified for the entire year, enter $100 ...... Page 11 of 64 Form 40 — Instructions Resident dependents claimed on line 6: 5. Enter $100 for each dependent who qualifies for the entire year. If a dependent qualifies for only part of the year, compute as follows: Number of qualified months _____ x $8.33 Number of qualified months _____ x $8.33 Number of qualified months _____ x $8.33 Number of qualified months _____ x $8.33 If you have more than four dependents, use additional paper to compute. Total credit allowed: 6. Add amounts on lines 2, 4, and 5. Enter total on line 43 ............................................ Donating Your Grocery Credit You can donate your entire grocery credit to the Cooperative Welfare Fund. To donate, check the box on line 43 and enter zero (0) in the column for line 43. Once you make the donation, it can’t be changed on an amended return. Note: If you (or your spouse) are age 65 or older and qualify for the credit but aren’t required to file an Idaho income tax return, you can claim the credit on Form 24. You can get this form from any Tax Commission office or our website at tax.idaho.gov. Form 24 is due by April 18, 2022. Line 44 Maintaining a Home for a Family Member Age 65 or Older or a Family Member with a Developmental Disability You can claim a tax credit of $100 per person (up to $300) if you maintained a household for an immediate family member: • Age 65 or older (not including yourself or your spouse), or • With a developmental disability (including yourself and your spouse), and • Didn’t claim a deduction of $1,000 per person on Form 39R, Part B, line 15 You can claim this credit even if your gross income is less than the filing requirement. Line 45 Fuels Tax Refund If you buy special fuels (diesel, propane, or natural gas) with Idaho tax included and use this fuel for heating or in off-highway equipment, you may be eligible for a refund of the Idaho special fuels tax you paid. Enter the amount from Form 75, Section IV, line 2. Include Form 75. Heating fuel generally is purchased without paying the tax. EIN00046 11-15-2021 2021 (continued) If you buy gasoline and use it in unlicensed equipment or auxiliary engines, you may be eligible for a refund of the Idaho gasoline tax you paid. Enter the amount from Form 75, Section IV, line 1. Include Form 75. Line 46 Idaho Income Tax Withheld Enter the total amount of Idaho income tax withheld. Include legible state copies of Form W-2s, 1099s, and other information forms that show Idaho withholding. Don’t claim credit for tax withheld for other states or federal tax withheld. Don’t include Form W-2s from other tax years or write on or change the amounts on your Form W-2s. Line 47 Form 51 Payments Enter the total payments you made with Form 51s on or before the due date. Include the amount of overpayment applied from your 2020 return. Line 48 Paid by Entity/Withheld/Affected Business Entity (ABE) If a pass-through entity pays or withholds income tax for an Idaho resident owner, include the amount paid or withheld on this line as specified on Form ID K-1. Also, include the amount of tax paid by the ABE on the individual’s share of ABE income. Include a copy of Form ID K-1s with your income tax return. Line 49 Tax Reimbursement Incentive Credit Enter the total credit allowed from the Idaho Reimbursement Incentive Certificate. Include a copy of the certificate with the return. Claim of Right Credit If you claimed a deduction or credit on your federal return for claim of right, complete Idaho Worksheet CR to determine which option benefits you most on your Idaho return. See Claim of Right Worksheets at tax.idaho.gov. Tax Due or Refund Line 52 Penalty and Interest Idaho law provides penalties for not filing tax returns by the due date, not paying tax due on time, and not prepaying enough on extension returns. For more information or to calculate a penalty, see our Penalties and Interest page at tax.idaho.gov/penalties. Interest: We charge interest on the amount of tax due, line 51, from the original due date until paid. The rate for 2022 is 3%. Page 12 of 64 Form 40 — Instructions Idaho Medical Savings Account: If you make an Idaho medical savings account withdrawal that’s taxable and you’re under age 59 1/2, the withdrawal is subject to penalty. The penalty is 10% of the amount withdrawn. Check the box and enter the amount here. Line 53 Total Due Enter the amount you owe, including penalty and interest, on this line. Don’t send cash. Payments of less than $1 aren’t required. We charge a $20 fee on all returned checks. Electronic payments. There’s no fee to pay by ACH Debit. Our third-party provider charges a convenience fee when you pay by credit card or e-check. We accept American Express®, Discover®, MasterCard®, and Visa®. For more information, visit our E-Pay page at tax.idaho.gov/epay. Check payments. Make your check or money order payable to the Idaho State Tax Commission. Be sure to write your Social Security number on it, and include it with your return. Don’t staple your check to your return or send a check stub. Line 55 Refund Enter the amount of your overpayment from line 54 that you want refunded to you. Refunds of less than $1 won’t be issued. You have three years from the return’s due date (not including extensions) to claim a refund. Refunds will be reduced by unpaid Idaho tax liabilities and can be applied to unpaid liabilities owed to other agencies. 2021 (continued) If your refund is being forwarded from a United States financial institution to a financial institution or financial agency located outside of the United States, check the box on this line. If after filing your Idaho income tax return you become aware that your electronic refund payment will be electronically deposited in a financial institution or financial agency located outside of the United States, please notify us at: Idaho State Tax Commission PO Box 56 Boise ID 83756-0056 Contact your bank to make sure your deposit will be accepted and that you have the correct routing and account numbers. Enter your nine-digit routing number. The routing number must begin with 01 through 12 or 21 through 32 for bank accounts. For all IDeal accounts, the routing number is 011001234. Enter the account number you want your refund deposited into. The account number can be up to 17 characters (both numbers and letters). For IDeal accounts, the account number will be 541 plus the 11-digit IDeal account number. Don’t include hyphens, spaces or special symbols. Enter the number left to right and leave any unused boxes blank. Check the appropriate box for account type. Check either checking or savings, but not both. For IDeal accounts, check the box for checking. The agency or party seizing the refund must send you notice of the action. Questions about a refund seizure should be directed to the agency or party that initiated the claim for seizure. Line 56 Estimated Tax If you’re filing an original return, subtract line 55 from line 54. The amount you enter will be applied to your 2022 tax and won’t be refunded. Line 57 Direct Deposit Complete this line if you want us to deposit your refund directly into your bank or Idaho 529 College Savings (IDeal) account instead of mailing you a check. EIN00046 11-15-2021 The check example above indicates where the proper banking information is located. To locate your IDeal account number, log into your account at www.idsaves.org or call (866) 433-2533 for assistance. You’re responsible for the accuracy of this information. Page 13 of 64 Form 40 — Instructions If your financial institution rejects your request for direct deposit, you’ll receive a check by mail instead. Note: An IDeal account has a maximum balance limit of up to $350,000 for each beneficiary. Amended Return Only Complete lines 58 through 61 only if you’re filing this return as an amended return. Line 58 Total Due or Overpaid on This Return If the total due shown on line 53 is greater than zero, enter it as a positive amount. If line 53 is zero, enter the amount of overpayment that’s shown on line 54 here as a negative amount. Line 59 Refund from Original Return Plus Additional Refunds Enter the total refund amount from previous returns for this tax year here as a positive amount. Line 60 Tax Paid with Original Return Plus Additional Tax Paid Enter the total due paid from previous returns for this tax year here as a positive amount. (Don’t include penalty, interest, Form 51 estimated payments, withholding, or unpaid tax.) Line 61 Amended Tax Due or Refund Add lines 58 and 59, then subtract line 60. A positive amount is your amended tax due. A negative amount is your amended refund. EIN00046 11-15-2021 2021 (continued) Tax Preparer Contact Box This box applies only if you paid a tax preparer to complete your return. If you check the box, you’re authorizing the Tax Commission to discuss your return with the paid preparer identified on the return. You’re also authorizing the paid preparer to: • Give the Tax Commission any information that’s missing from your return, and • Call the Tax Commission for information about the processing of your return or the status of your refund or payments You’re not authorizing the paid preparer to receive any refund check, bind you to anything including any additional tax liability, or otherwise represent you before the Tax Commission. This authorization is valid for up to 180 days from the date the Tax Commission receives the return. If you want the Tax Commission to contact you rather than your preparer, leave the box blank. Signatures Who must sign the return? • You • Your spouse (if filing a joint return) • A paid preparer (if used). Include preparer’s name, address, and identification number • An authorized person signing for a deceased individual or an individual unable to sign. Include the authorized person’s relationship to the taxpayer. Write “FILING AS SURVIVING SPOUSE” or “unable to sign” in the signature space • If a taxpayer signs with an “X,” this mark must be witnessed • Not signing the return will delay processing Page 14 of 64 Form 43 — Instructions Part-year Resident and Nonresident Income Tax Return Instructions are for lines not fully explained on the form. General information instructions beginning on page 2 also apply to this form. Grocery Credit Refund Only You must be an Idaho resident or an Idaho resident on active military duty to qualify for a refund of the grocery credit. Part-year residents can claim a prorated credit against their tax due but don’t qualify for a refund of any excess credit. Nonresidents don’t qualify for the credit. If you were a resident, but your spouse was a part-year resident or nonresident and you aren’t required to file an income tax return, file Form 43 to claim a refund of the grocery credit allowed to the resident. You aren’t required to include a copy of the federal return. Complete Form 43 as follows: • Complete the top of the form through line 6 • Skip lines 7 through 27 • Write “NRF” (Not Required to File) on line 28, Column A. Leave line 28, Column B blank • Skip lines 29 through 31 • Complete line 32a if you (or your spouse) are age 65 or older • Skip lines 33 through 51 • Cross through the $10 on line 52, Permanent Building Fund, and write “NRF” • Skip lines 53 through 62 • Enter your grocery credit amount on line 63 using the grocery credit worksheet on page 23 • Complete applicable lines 64 through 77 • Skip lines 78 through 81 • Complete the bottom of Form 43 below line 81 Heading Write your name, address, and Social Security number (SSN) in the spaces provided. If you don’t have an SSN, write in your Individual Tax Identification Number (ITIN). If you don’t have or aren’t required to have an SSN or ITIN, enter “NRA” (Nonresident Alien) in the SSN space. If you’ve applied for an ITIN and haven’t received it from the IRS before you file your Idaho return, enter “Form W-7” in the space provided for the SSN. If you enter “Form W-7,” include a copy of EIN00046 11-15-2021 2021 your federal Form W-7 with your return. Once you receive your ITIN from the IRS, you must provide it to the Tax Commission before your return can finish processing. If you receive an SSN after using an ITIN, you must use the SSN and stop using your ITIN. It’s your responsibility to notify the Tax Commission so your return can finish processing. Be sure that your return and W-2 forms show the correct SSN or ITIN. An error in your SSN or ITIN will delay your refund. Amended Return You can use this form as an original return or an amended return. If you’re filing this form as an amended return, check the box at the top of the form. Enter the number from the following list that best describes your reason for amending. 1. Federal Audit 2. Net Operating Loss Carryback – Include Form 56 or a schedule showing the application of the loss 3. Federal Amended – Include a complete copy of your federal return 4. Other – Include an explanation Complete the entire form and schedules using the corrected amounts. Don’t include a copy of your original return with the amended return. Nonresident Alien Nonresident aliens for federal purposes are nonresidents for Idaho income tax purposes. If you’re (you or your spouse) a nonresident alien, check the box below the address and check Nonresident for your residency status. Residency Status Check the box that applies to your residency status for 2021. If you’re married and filing a joint return, check the box that applies to your spouse’s residency for 2021. Use Form 43 if one of you is a resident and the other isn’t, and you filed a joint federal return. See page 4 to determine your status. • If you’re (you or your spouse) an Idaho resident, check box 1. • If you’re (you or your spouse) a member of the armed forces on active military duty outside Idaho and Idaho is your state of permanent residence, check box 2. (An Idaho resident on Page 15 of 64 Form 43 — Instructions active military duty in or outside Idaho must file on Form 40 unless your spouse is a part-year resident or nonresident.) • If you’re (you or your spouse) a nonresident, check box 3. • If you or your spouse moved into or out of Idaho and were a resident for only part of the year, check box 4. • If you’re (you or your spouse) in Idaho on military orders but your state of permanent residence is another state, check box 5. See the instructions for Military Personnel on page 5 of this booklet. If the earned income of a servicemember’s spouse is exempt from Idaho taxation on Idaho Form 43, the servicemember must check box 5 and the qualifying spouse must check box 3. If you’re a resident filing Forms 43 and 39NR due to a nonresident spouse, the amounts reported for additions and subtractions in the Idaho column must be the total amount for your share of those additions or subtractions plus the amount of any Idaho additions or subtractions of your nonresident spouse. Full Months in Idaho This Year If you were a part-year resident, enter the number of full months you lived in Idaho in 2021. If you’re married and filing a joint return, enter the number of full months your spouse lived in Idaho in 2021. Nonresidents don’t respond to this question. Current State of Residence Use the two-letter state abbreviation to report your current state of residence. For example, if you moved to Idaho during 2021, use ID. All part-year residents and nonresidents must complete this section. Spouses with separate domiciles may report different states. If you’re a military nonresident, indicate your military home of record. Lines 1 Through 5 Filing Status Check the box indicating your Idaho filing status. Refer to General Information on page 2 for further information on filing status. Line 6 Household Line 6a. Yourself. Enter “1” unless someone else claims you as a dependent on their return. EIN00046 11-15-2021 2021 (continued) Line 6b. Spouse. Enter “1” if you’re filing a joint return. Enter “1” if your spouse died during 2021 and you’re filing a joint return. Leave the line blank if someone else claims your spouse as a dependent on their return. Line 6c. Dependents. List your dependents. Include their SSN and birthdate. If you have more than four dependents, continue on Form 39NR, Part G. Enter the total number of dependents on the line. If you’re the noncustodial parent of a dependent and are claiming them on your return, include federal Form 8332 or a copy of the court order with the return. See irs.gov for more information. Line 6d. Total Household. Add lines 6a through 6c. Idaho Income Complete your federal income tax return before you begin this form. You’ll use the information from your federal income tax return to complete your Form 43. Line 7 Wages, Salaries, Tips, etc. Enter the total wages, salaries, tips, etc. received for all employment while an Idaho resident or part-year resident and for all work performed in Idaho while a nonresident. If you’re a nonresident who works for an employer both in Idaho and outside of Idaho, visit our Idaho Residency Status webpage at tax.idaho.gov. It explains how to determine the amount of income that’s taxable to Idaho. If your military home of record is Idaho and you’re on active duty outside Idaho, include all of your wages. Your active duty military wages earned outside of Idaho can be deducted on Form 39NR, Part B, line 7. If you have nonmilitary wages that are taxable in another state, you can take a credit for tax paid to other states on Form 39NR, Part D. If your military home of record wasn’t Idaho and you were on active duty in Idaho, don’t include your military wages. If the servicemember’s spouse’s earned income isn’t taxable by Idaho as described on page 5 under Military Personnel, don’t include the qualifying spouse’s wages. If the wages on line 7 don’t match the Idaho income amounts on your Form W-2s, include a schedule or explanation. Page 16 of 64 Form 43 — Instructions Line 8 Taxable Interest Income From federal Form 1040 or 1040-SR, line 2b, enter all: • Interest income received while an Idaho resident • Business interest income earned from Idaho sources • Interest income on installment sales of Idaho property Note: Don’t include interest earned from a personal bank account in Idaho while a nonresident. Line 9 Dividend Income From federal Form 1040 or 1040-SR, line 3b, enter dividends earned while an Idaho resident or part-year resident and dividends earned from Idaho sources while a nonresident. Line 10 Alimony Received From federal Schedule 1, line 2a, enter alimony received while an Idaho resident or part-year resident. Line 11 Business Income or Loss From federal Schedule 1, line 3, enter the income or loss reported on Schedule C or C-EZ from businesses or professions engaged in while an Idaho resident or part-year resident or conducted in Idaho while a nonresident. A nonresident conducting business in Idaho and another state must apportion income or loss. Complete and include Idaho Form 402. Line 12 Capital Gain or Loss From federal Form 1040 or 1040-SR, line 7, enter the gain or loss reported on Schedule D from: • The sale of capital assets located in Idaho • The sale of capital assets while you were residing in Idaho, or • The receipt of installment sale proceeds while you were an Idaho resident Line 13 Other Gains or Losses From federal Schedule 1, line 4, enter other gains or losses reported on federal Schedule 4797 that occurred while an Idaho resident or part-year resident or from an Idaho business. Line 14 IRA Distributions From federal Form 1040 or 1040-SR, line 4b, enter the amount of IRA distributions received while an Idaho resident or part-year resident. EIN00046 11-15-2021 2021 (continued) Line 15 Pensions and Annuities From federal Form 1040 or 1040-SR, line 5b, enter the amount of pensions and annuities received while an Idaho resident or part-year resident. Line 16 Rents, Royalties, Partnerships, etc. From federal Schedule 1, line 5, enter the amount reported on Schedule E earned or received while an Idaho resident or part-year resident or related to Idaho business or property. Report passive activity losses from Idaho activities that are “Allowed” losses from federal Form 8582 and corresponding worksheets. Line 17 Farm Income or Loss From federal Schedule 1, line 6, enter the amount reported on Schedule F that’s farm income or loss incurred while an Idaho resident or part-year resident or from an Idaho farming operation. A nonresident operating a farm in Idaho and another state must apportion income or loss. Complete and include Idaho Form 402. Line 18 Unemployment Compensation From federal Schedule 1, line 7, enter any unemployment compensation received while an Idaho resident or part-year resident. Enter the amount received from the Idaho Department of Labor while a nonresident. Line 19 Other Income From federal Schedule 1, line 8, enter any other income received while an Idaho resident or part-year resident or from an Idaho source. An example is: • Idaho lottery winnings over $600 Also include: • The total of any state income tax refunds received while an Idaho resident from federal Schedule 1, line 1, state tax rebates for Idaho servicemembers, and • The taxable amount of Social Security benefits received while an Idaho resident from federal Form 1040 or 1040-SR, line 6b. Don’t include federal NOL on this line. Idaho Adjustments Line 21 Deductions for IRAs and Health Savings Accounts Enter Idaho’s portion of: • The IRA deduction included on federal Schedule 1, line 20 Page 17 of 64 Form 43 — Instructions • The deduction for a federal health savings account included on Schedule 1, line 13 • The IRC 501(c)(18)(D) retirement plan included on Schedule 1, line 24f 1. Enter the amount of wages and earned income you computed on the federal IRA deduction worksheet and the amount of income you earned from the business that the federal health savings account deduction is claimed on ............................. % 1. Enter total income from Form 43, line 20. Don’t include federal NOL in line 20 ......... % Note: S corporation wages paid to a more-than-2% shareholder qualify for self-employed health insurance. 11-15-2021 A x x x B = = = C Total Idaho Self-Employment Tax Deduction .......................................... 2. Self-Employed SEP, SIMPLE, and Qualified Plans Enter the total federal deduction amount related to each Schedule C, E, and/or F in Column A. Compute the Idaho percentage in Column B by dividing the Idaho self-employment income reported by each business by the total self-employment income reported by each business. Multiply Column A by Column B and enter in Column C. A Business 1 Business 2 Business 3 B x x x C = = = Total Idaho Self-Employed Retirement Plan Deduction ...................... Line 23 Deductions for Self-employed Enter Idaho’s portion of the deductions for self-employment tax, self-employed health insurance, and contributions to a Simplified Employee Pension Plan (SEP), a Savings Incentive Match Plan for Employees (SIMPLE), or a qualified plan reported on your federal Schedule 1, lines 15, 16, and 17. EIN00046 1. Self-Employment Tax Deduction Enter the total federal deduction amount related to each Schedule C, E, and/or F in Column A. Compute the Idaho percentage in Column B by dividing the Idaho income reported by each business by the total income reported by each business. Multiply Column A by Column B and enter in Column C. Business 1 Business 2 Business 3 Line 22 Moving Expenses, Alimony Paid, and Student Loan Interest If you claimed a deduction on federal Schedule 1, line 14, 19a, or 21 for moving expenses, alimony paid, or student loan interest, complete this worksheet to determine your Idaho deduction, if any: 2. Enter total income from federal Form 1040 or 1040-SR, line 9, less federal NOL unless already subtracted ..... 3. Divide line 1 by line 2. (Can’t exceed 100%) ................................. 4. Enter total allowable federal amount of moving expenses, alimony paid, and student loan interest .................................. 5. Multiply line 4 by line 3. Enter this amount on line 22 ...................................... (continued) To compute Idaho’s portion, complete this worksheet. If you have amounts from more than three businesses, add more lines. • The Archer MSA deduction included on Schedule 1, line 23, and 2. Enter the amount from line 1 received while an Idaho resident or part-year resident or from Idaho sources .................. 3. Divide line 2 by line 1. (Can’t exceed 100%) ................................. 4. Enter amounts from federal Schedule 1, lines 13, 20, 23, and 24f ............................ 5. Multiply line 4 by line 3. Enter this amount on line 21 ...................................... 2021 3. Self-Employed Health Insurance Deduction Enter the total federal deduction amount related to each Schedule C, E, and/or F in Column A. Compute the Idaho percentage in Column B by dividing the Idaho income reported by each business by the total income reported by each business. Multiply Column A by Column B and enter in Column C. A Business 1 Business 2 Business 3 B x x x C = = = Total Idaho Self-Employed Health Insurance Deduction .................... 4. Total Self-Employment Deduction Add the total amounts in Column C, lines 1, 2, and 3 ........................................ Page 18 of 64 Form 43 — Instructions Line 24 Penalty on Early Withdrawal of Savings Enter the amount from federal Schedule 1, line 18 that relates to interest income reported as Idaho income. Line 25 Other Deductions You may qualify for an Idaho deduction if you claimed any of the following items on federal Schedule 1, lines 11 through 25 relating to: • Reservists • Performing artists • Fee-based government officials • Educator expenses • A write-in deduction for rental of personal property • Reforestation amortization and expenses* • Attorney fees and court costs • Jury duty pay Divide the amount of income relating to that item included in Idaho total income by the income relating to the item included in federal adjusted gross income. This percentage is mult
Individual Income Tax Forms and Instructions 2021 approved
More about the Idaho Income Tax Instructions Individual Income Tax TY 2021
This free booklet includes instructions on how to fill out your Idaho income tax return. Includes instructions on making estimated payments and completing Forms 40, 43, 39R, 39NR, and 44. Income Tax Instructions requires you to list multiple forms of income, such as wages, interest, or alimony .
We last updated the Idaho Income Tax Instruction Booklet in January 2022, so this is the latest version of Income Tax Instructions, fully updated for tax year 2021. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Idaho tax forms here.
Other Idaho Individual Income Tax Forms:
|Form Code||Form Name|
|FORM ID-VP||Income Tax Payment Voucher|
|FORM 24||Idaho Grocery Credit Refund|
|FORM 51||Estimated Payment of Idaho Individual Income Tax|
|FORM 40||Idaho Individual Income Tax Return|
|Income Tax Instructions||Idaho Income Tax Instruction Booklet|
Idaho usually releases forms for the current tax year between January and April. We last updated Idaho Income Tax Instructions from the State Tax Commission in January 2022.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Idaho Income Tax Instructions
We have a total of seven past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Individual Income Tax Forms and Instructions 2021 approved
Individual Income Tax Instructions 2020
Individual Income Tax Instructions 2019
Individual Income Tax Instructions Packet 2018
Individual Income Tax Instructions Packet
Individual Income Tax Instructions Packet
While we do our best to keep our list of Idaho Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.