Print This Section

INDIVIDUAL INCOME TAX (IIT)

IIT - 1	How long do I have to file a return and claim a refund? You have three years from the original due date of your income tax return to file for a refund. After that time, a refund won’t be issued. The original due date is April 15 (except when it falls on a weekend or holiday). If you had an extension for your due date, it doesn’t apply to the three-year refund claim period. Ref: Idaho Code Section 63-3072 Return to Questions
IIT - 1A	I haven't received my tax refund yet. How do I find out when it will come? Check on your refund through our Web site, or call our toll-free automated refund information number at (888) 228-5770. In the Boise area, call 364-7389. Contact us if you need more information. Return to Questions
IIT - 2	What is Idaho's individual income tax rate? For tax year 2007, the individual income tax is graduated from 1.6% to 7.8%. The tax rate is applied to the "Idaho taxable income." The tax brackets are adjusted annually based on the consumer price index. The 2007 Tax Tables show the amount of tax due on Idaho taxable incomes that are less than $100,000. For taxable incomes of $100,000 or more use the Tax Rate Schedule found on the last page of the 2007 Tax Tables. You can find additional Information on the tax rates in Idaho Code Section 63-3024. Contact us if you need more information. Return to Questions
IIT - 3A	How do I file for an extension? If you can't file your individual income tax return by the original due date of the return (April 15, in most cases* ), you can have an automatic six-month extension without filing a form. To have a valid extension and avoid paying a penalty, the amount of tax withheld and your other payments must be at least 80% of your current year's tax liability or 100% of the total tax reported on your income tax return for the preceding tax year (if you filed one). Complete the worksheet on Form 51 to see if you meet the extension requirements. If you need to make a payment to avoid a penalty, use one of these options: Mail Form 51 with your check or money order. Make a credit card payment by mail, using the Credit Card Payment Voucher. Make an online credit card payment through this Web site. You must file your tax return before the six months expire (by October 15, in most cases*). The balance of your tax liability is due when you file the extended return.  If it's not paid at that time, we'll begin the collection process. You must pay interest on any tax not paid by the original due date of the return (April 15, in most cases*). *For years when April 15 and October 15 fall on weekends, the due date is moved to the next business day. Contact us if you need more information. Return to Questions
IIT - 3B	How do I make an estimated payment? Quarterly estimated payments are not required for Idaho individual income tax, but you can make a voluntary estimated payment with the Form 51, Estimate of Idaho Individual Income Tax. Contact us if you need more information. Return to Questions
IIT - 4	Are retirees taxed on their retirement income? Generally, all income received by an Idaho resident, regardless of the source, is subject to Idaho income tax. Idaho does not tax social security benefits, benefits paid by the Railroad Retirement Board or Canadian social security benefits (OAS or CPP) Idaho does offer a retirement benefits deduction if you are age 65 or older, or if you are disabled and age 62 or older, and receive qualifying retirement benefits. Persons using the “married filing separate” filing status are not eligible for this benefit. The following are the types of benefits that qualify for this deduction (PERSI does not qualify for this benefit): Civil Service Employees: Retirement annuities paid by the United States to a retired civil service employee or the unremarried widow of the employee if the recipient is age 65 or older, or disabled and age 62 or older. Idaho Firemen: Retirement benefits paid from the firemen’s retirement fund of the state of Idaho to a retired fireman or the unremarried widow of a retired fireman if the recipient is age 65 or older, or disabled and age 62 or older. Policemen of an Idaho city: Retirement benefits paid from the policemen’s retirement fund of a city within Idaho to a retired policeman or the unremarried widow of a retired policeman if the recipient is age 65 or older, or disabled and age 62 or older. Servicemen: Retirement benefits paid by the United States to a retired member of the U.S. military service or the unremarried widow of such member if the recipient is age 65 or older, or disabled and age 62 or older. The amount deducted must be reduced by retirement benefits paid under the Federal Social Security Act and the Federal Railroad Retirement Act. The maximum amount that may be deducted for 2005 is: Married filing jointly: • age 65 or older $38,088 • age 62 or older and disabled $38,088 Single: • age 65 or older $25,392 • age 62 or older and disabled $25,392 Contact us if you need more information. Return to Questions
IIT - 5	What are the filing requirements in Idaho? Full-year residents must file an Idaho tax return based on gross  income as shown in the following schedule (do not include Social Security income):                        2007 2006 2005 2004 Married filing separate return $3,400 $3,300 $3,200 $3,100 Married filing jointly, both under 65 $17,500 $16,900 $16,400 $15,900 Married filing jointly, one 65 or older $18,550 $17,900 $17,400 $16,850 Married filing jointly, both 65 or older $19,600 $18,900 $18,400 $17,800 Head of Household, under 65 $11,250 $10,850 $10,500 $10,250 Head of Household, 65 or older $12,550 $12,100 $11,750 $11,450 Single, under 65 $8,750 $8,450 $8,200 $7,950 Single, 65 or older $10,050 $9,700 $9,450 $9,150 Qualifying widow(er) with dependent child, under 65 $14,100 $13,600 $13,200 $12,800 Qualifying widow(er) with dependent child, 65 or older $15,150 $14,600 $14,200 $13,750 Part-year residents must file an Idaho income tax return if their gross income from all sources while a resident and gross income from Idaho sources while a nonresident is more than $2,500. Nonresidents must file an Idaho income tax return if their gross income from Idaho sources is more than $2,500. Gross Income consists of all income from all sources before applying expenses or deductions. This includes compensation for services, gross income of a business, interest, rents, dividends, and gains from the sale of property. It also includes a partner or shareholder's share of the gross income of a partnership or S corporation, which is different than the net amount reported on the federal Schedule K-1. Contact us if you need more information. Return to Questions
IIT - 6A	When must the tax return be postmarked if the due date (April 15 or October 15 for extended returns) falls on a weekend? For calendar year taxpayers, if the due date falls on a Saturday, Sunday, or legal holiday, the tax return or extension must be filed by the next day that is not a Saturday, Sunday, or legal holiday. Contact us if you need more information. Return to Questions
IIT - 6B	Where do I send my Idaho individual income tax return? Income tax returns and estimated payments are mailed to: Idaho State Tax Commission PO Box 56 Boise ID 83756-0056 Return to Questions
IIT - 7	What if I can’t find the form I need? If you cannot find the form you need on the forms list, you can get help by calling Taxpayer Services at (208) 334-7660 or toll free at (800) 972-7660. Most Idaho libraries have a copy of "Idaho Reproducible Forms," which contains tax forms for individuals and businesses. Contact us if you need more information. Return to Questions
IIT - 8	If I did not live in Idaho, do I have to file a tax return? If you are a nonresident, you are required to file an Idaho income tax return if your gross income from Idaho sources was more than $2,500.00. You must use the Form 43, Idaho Part-Year Resident & Nonresident Income Tax Return. Your filing status must be the same as the federal return and you must attach a copy of your federal return. Contact us if you need more information. Return to Questions
IIT - 9	Do I have to pay the permanent building fund tax? Unless you are specifically exempted from paying the permanent building fund tax, you must pay it. You do not have to pay the permanent building fund tax if you are not required to file, you were receiving Idaho public assistance, or you or your spouse were legally blind at the end of the year. Contact us if you need more information. Return to Questions
IIT - 10	What is the tax rate for capital gains income in Idaho? Idaho does not have a special tax rate for gains and losses on stocks, bonds, or other intangibles. Idaho does have a deduction of up to 60% of the capital gain net income of qualifying Idaho property. For tax year 2001 only, the deduction was increased to 80% of the qualifying capital gain net income. For a list of qualifying property, refer to FAQ IIT - 11 or the Form CG. You must complete Form CG to compute your Idaho capital gains deduction. Contact us if you need more information. Return to Questions
IIT - 11	What property qualifies for the Idaho capital gains deduction? Only property located in Idaho qualifies. Gains from the sale of the following Idaho property qualify for the capital gains deduction: Real property held for at least 12 months and sold on or after January 1, 2005.  Real property sold before January 1, 2005 must have been held for at least 18 months. NOTE: To determine if the holding period is met for property sold in an installment sale you must look to the holding period requirements in effect for the year the property was sold. Tangible personal property used in revenue-producing enterprise and held for at least 12 months. A revenue-producing enterprise means: a. Producing, assembling, fabricating, manufacturing or processing any agricultural, mineral or manufactured product; b. Storing, warehousing, distributing or selling at wholesale any products or agriculture, mining or manufacturing; c. Feeding livestock at a feedlot; d. Operating laboratories or other facilities for scientific, agricultural, animal husbandry or industrial research, developmental or testing. Cattle and horses held for at least 24 months, and other livestock used for breeding held for at least 12 months, if the owner received more than one-half of his gross income from farming or ranching in Idaho. Timber held for at least 24 months. NOTE:Capital gains resulting from the sale of stock or other intangible assets DO NOT qualify for the capital gains deduction. Contact us if you need more information. Return to Questions
IIT - 12	Do the gains from the sale of stocks, bonds and other intangibles qualify for Idaho's capital gains deduction? No, gains from the sale of stocks, mutual funds, and other intangible property do not qualify for the deduction. Contact us if you need more information. Return to Questions
IIT - 13	Are there any circumstances that will exempt me from having to file an Idaho income tax return while I am out of the state? Yes, if you meet the qualifications of a Special-case Idaho Resident, you will be considered an Idaho nonresident for income tax purposes. You are considered a nonresident if all of the following are true: You are 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 did not have a personal residence in Idaho for yourself or your family during any part of the calendar year. You did not claim Idaho as your federal tax home for deducting away-from-home expenses on your federal return. You were not employed on the staff of a U.S. senator or You did not 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. As an Idaho nonresident you are required to file an Idaho income tax return if your gross income from Idaho sources is $2,500 or more. Ref: Idaho Code Sections 63-3013 and 63-3030 Contact us if you need more information. Return to Questions
IIT - 14	I am an Idaho resident and work in another state. Is my income taxable to Idaho?  If you are an Idaho resident, all of your income, including income from sources outside Idaho, is taxable. If some or all of your income is also taxed by another state, you may be entitled to a credit against your Idaho income tax. To take this credit, you must complete Form 40 and Form 39R and attach a complete copy of the other state’s tax return to your Idaho return.   If you are a part-year resident, you are taxed on all of the income you receive while living in Idaho plus any income you receive from Idaho sources when not living in Idaho. During the time that you were an Idaho resident, if some or all of the income was also taxed by another state, you may be entitled to a credit against your Idaho income tax. To take this credit, you must complete Form 43 and Form 39NR and attach a complete copy of the other state’s tax return to your Idaho return. For information on residency status refer to the Residency Status Brochure. Ref: Idaho Code Sections 63-3002, 63-3022, 63-3026A and 63-3029 Contact us if you need more information. Return to Questions
IIT - 15	Does Idaho offer a college savings plan similar to the federal education credits (Lifetime Learning Credit and Hope Credit)? Idaho now offers a deduction for contributions to a qualified Idaho college savings program. The deduction is limited to $4,000 ($8,000 if married filing a joint return). For the most current information about IDeal, the new Idaho College Savings Program, click www.idsaves.org. Contact us if you need more information. Return to Questions
IIT - 16	Does Idaho allow the educators' out-of-pocket classroom expense deduction that is allowed on my federal return as a deduction in computing adjusted gross income? No.  Idaho does not conform to the federal law that allows educators a deduction up to $250 for out-of-pocket classroom expenses.  This deduction is claimed on the federal return as a deduction in computing adjusted gross income.  It is allowed under Internal Revenue Code Section 62(a)(2)(D).  If you claim this deduction on your federal return, you must add back the amount deducted as an "other addition" on your Idaho return. Ref.  Idaho Code Section 63-3022O, Internal Revenue Code Section 62. Contact us if you need more information. Return to Questions
IIT - 17	If Idaho does not conform to the federal deduction for educators' out-of-pocket classroom expenses, can I claim these amounts as a miscellaneous itemized deduction on my Idaho return? No. You may not claim these expenses as miscellaneous itemized deductions for Idaho income tax purposes because they are not allowed as itemized deductions for federal income tax purposes under IRC section 63. IRC section 63 specifically denies an itemized deduction for expenses that are allowable in computing adjusted gross income. A qualifying educator may claim the first $250 of out-of-pocket expenses only as a deduction in computing adjusted gross income. Therefore, the expenses do not qualify as itemized deductions. Ref. Idaho Code section 63-3022(j), Internal Revenue Code section 63. Contact us if you need more information. Return to Questions
IIT - 18	How do I amend my Idaho individual tax return? Full-year Idaho residents should amend income tax returns by completing a corrected Form 40. Part-year Idaho residents and Idaho nonresidents should amend income tax returns by completing a corrected Form 43. For tax years prior to 2001 complete the required form(s) and then write “AMENDED RETURN” at the top of the page. Attach information that will provide an explanation as to why the return is being amended. For tax years 2001 and later complete the required form(s) and check the box for an amended return in the upper-left corner of the form. Attach information that will provide an explanation as to why the return is being amended. Attach the following documents to your Idaho amended return: ·         A full copy of Form 1040X if your federal return has been amended,   ·         Copies of 1099s and/or W-2s that were not included with the original return, and ·         If necessary, any required payment. Generally amended returns must be mailed. However, the amended return may be filed electronically if the original return was filed electronically. Contact us if you need more information. Return to Questions
IIT - 19	What is an Idaho Medical Savings Account and how does it work? An Idaho Medical Savings Account is an account opened at an Idaho bank, credit union, or other qualified Idaho financial institution. Taxpayers can deduct amounts they contribute, up to $2,000 ($4,000 on a married filing joint return), to an Idaho Medical Savings Account from their tax return. The funds contributed to this account can be used to pay qualified medical expenses. For more information, read the Idaho Medical Savings Account brochure or contact Taxpayer Services by phone or e-mail. Contact us if you need more information. Return to Questions
IIT - 20	Is my federal economic stimulus payment taxable as Idaho income? No. Contact us if you need more information. Return to Questions