What is the Idaho College Savings Account Withdrawal Addition?

If you make a nonqualified withdrawal from an Idaho College Savings Account, enter the amount withdrawn less any amounts reported on your federal Form 1040.

Withdrawals from Idaho College Savings Programs that are transferred to a qualified program operated by another state must be included here. The amount added back is limited to your contributions deducted in the year of transfer and the prior taxable year.

What are some examples of Other Additions?

Retirement Plan Lump-Sum Distributions
Enter the taxable amount of a lump-sum distribution from a retirement plan reported on federal Form 4972. The amount subject to Idaho tax includes the ordinary income portion and the amount eligible for the federal capital gain election. Part-year Residents: In the Idaho column enter the amount received while an Idaho resident.

Partner and Shareholder Additions
Enter the amount from Form ID K-1, Part B, Line 4. Part-year/Nonresidents: In the Idaho column enter your share of other additions from Form ID K-1, Part B, Line 4. This is usually the amount of other additions included on Form ID K-1, Part B, Line 4 multiplied by the percentage shown on Form ID K-1, Part A, Line 1.

Idaho Medical Savings Account Withdrawals
If you withdraw funds from an Idaho Medical Savings Account and don't use the funds to pay eligible medical expenses, the withdrawal is subject to Idaho tax. Eligible medical expenses include medical, vision and dental care, medical insurance premiums, and long-term care expenses. Enter the amount of withdrawal not used to pay eligible medical expenses. Part-year/Nonresidents: Enter this amount in both the federal and Idaho columns.

Non-Idaho Passive Losses
If you claimed a passive loss that was incurred from activities not taxable by Idaho or before you became an Idaho resident, enter the amount reported on your federal return.Part-year Resident:In the Idaho column, enter the losses incurred you were an Idaho resident.

What is the Idaho Net Operating Loss Carryover?

Enter the amount of your Idaho net operating loss carryover. If you claim this subtraction, you need to fill out Form 56 or a schedule showing the application of the loss. You'll need to attach this form to your Idaho return and mail it to the Idaho State Tax Commission instead of e-filing. Part-year/Nonresidents: Don't include losses from sources that weren't taxable by Idaho or that were incurred before becoming a resident or part-year resident.

What qualifies for the Energy Efficiency Upgrade subtraction?

To qualify for this subtraction, your Idaho residence must have existed, been under construction, or had a building permit issued on or before January 1, 2002.

Energy efficiency upgrade means an energy efficiency improvement to your residence's envelope or duct system that meets or exceeds the minimum value for the improved component established by the version of the International Energy Conservation Code (IECC) in effect in Idaho during the tax year in which the improvement is made.

Energy efficiency upgrades include:
  • Insulation that is added to, not replacing, existing insulation. Insulated siding doesn't qualify unless the cost of the siding and the insulating material is separately stated, in which case the cost of the insulating material alone qualifies.
  • Windows that replace less efficient existing windows.
  • Storm windows.
  • Weather stripping and caulking.
  • Duct sealing and insulation. Duct sealing requires mechanical fastening of joints and mastic sealant.
The amount charged for labor to install the energy efficiency upgrades is also deductible. Storm doors no longer qualify for this deduction.

What are the requirements for the Alternative Energy Device Deduction?

If you install an alternative energy device in your Idaho residence, you may deduct a portion of the amount actually paid or accrued (billed but not paid).

In the year the device is placed in service, you can deduct 40% of the cost to construct, reconstruct, remodel, install, or acquire the device, but not more than $5,000.

In the next three years after installation, you can deduct 20% of these costs per year, but not more than $5,000 in any year.

Qualifying devices include the following:
  • A system using solar radiation, wind, or geothermal resource primarily to provide heating or cooling, electrical power, or any combination thereof
  • A fluid-to-air heat pump operating on a fluid reservoir heated by solar radiation or geothermal resource but not an air-to-air heat pump unless it uses geothermal resources as part of the system
  • A natural gas or propane heating unit that replaces a noncertified wood stove
  • An Environmental Protection Agency (EPA) certified wood stove or pellet stove meeting the most current industry and state standards that replaces a noncertified wood stove

A noncertified wood stove is a wood stove that doesn't meet the most current EPA standards. The noncertified wood stove must be taken to a site authorized by the Division of Environmental Quality (DEQ) within 30 days from the date of purchase of the qualifying device.

The natural gas or propane heating unit, the EPA-certified wood stove, or pellet stove must be installed the same tax year that the nonqualifying wood stove is turned in to the DEQ.

What is the Qualified Retirement Benefits Deduction?

If you are age 65 or older, or if you are disabled and age 62 or older, you may be able to deduct some of the retirement benefits and annuities you receive. You can't claim this deduction if you file Married Filing Separately.

Only the following are qualified retirement benefits:
  • 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. Retirement annuities paid to a retired federal employee under the Federal Employees Retirement System (FERS) don't qualify for this deduction. You can tell if your benefits are paid under the CSRS or FERS by looking at the first digit of the account number shown on your CSA-1099. If the first digit is 7 or 8, the benefits are paid out of FERS and do not qualify. If the first digit is 0, 1, 2, 3, or 4, the benefits are paid out of CSRS.
  • 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. Benefits paid out of the PERSI Base Plan don't qualify for the deduction.
  • Policemen of an Idaho city: Retirement benefits paid from the Policemen's Retirement Fund - that no longer admits new members and, on January 1, 2012, was administered by an Idaho city or PERSI - 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. Also, benefits paid by PERSI relating to Idaho police officer employment not included in the federal Social Security retirement system qualify. Benefits paid out of the PERSI Base Plan don't qualify for the deduction.
  • Servicemen: Retirement benefits paid by the United States to a retired member of the U.S. military 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 received by you and your spouse.

Disability pension paid by the Federal Railroad Retirement Act may not be included on your Form RRB-1099 or Form RRB-1099-R, if you are under the minimum retirement age. Instead it may be included on Form 1040, Line 7 as wages.

The maximum amounts that may be deducted for 2014 are:

Married Filing Jointly:
Age 65 or older - $47,556
Age 62 or older and disabled - $47,556

Single:
Age 65 or older - $31,704
Age 62 or older and disabled - $31,704

What is the Technological Equipment Donation?

Enter the lesser of cost or fair market value of technological equipment donated to a public elementary or secondary school, public or private college or university, public library, or library district located in Idaho. Items that qualify for this deduction are limited to computers, computer software, and scientific equipment or apparatus manufactured within five years of the date of donation. The amount deducted can't reduce Idaho taxable income to less than zero. Any unused deduction can't be carried to another year.

What active-duty military pay qualifies for a deduction?

If you're serving in the United States Army, Navy, Marine Corps, Air Force, or Coast Guard on active military duty that is continuous and uninterrupted for 120 days, your active duty military wages for service outside of Idaho aren't subject to Idaho tax. The continuous 120 days don't have to be in the same tax year. Enter your nontaxable military wages. Part-year Residents: Only enter your nontaxable military wages included in Idaho income.

Don't include military wages earned while stationed in Idaho.

Your wage and tax statement (W-2 (W2)) doesn't show this amount separately and you may have to compute the amount of income earned outside of Idaho. You should see your unit of assignment or use your orders in making the computation. Include a copy of your worksheet.

National Guard or Reserve pay, including annual training pay, generally doesn't qualify as active duty pay unless you've been called into full-time duty for 120 days or more. If you're a commissioned officer of the Public Health Service or of the National Oceanic and Atmospheric Administration militarized by the President of the United States and attached to the armed forces, your active duty military wages earned outside Idaho qualify for this deduction.

What qualified adoption expenses can be subtracted?

If you adopt a child, you may deduct the expenses incurred in the adoption. You may claim legal and medical expenses incurred up to a maximum of $3,000 per adoption. Travel expenses don't qualify. If the expenses are incurred in two or more years, deduct the costs in the year paid until the $3,000 limit has been met. The expenses related to an unsuccessful attempt to adopt aren't deductible. If expenses were claimed in a year prior to such a determination, file an amended return to add back any deduction claimed for the unsuccessful attempt.

What Idaho medical savings account contributions and interest can be subtracted?

You may contribute up to $10,000 ($20,000 if Married Filing Jointly) to an Idaho medical savings account and deduct the contribution. Deductible contributions don't include reimbursements that were redeposited into your Idaho medical savings account. Don't include amounts deducted on federal Form 1040.

An Idaho medical savings account is generally established with a bank, savings and loan, or credit union. The account is established to pay eligible medical expenses of the account holder and the account holder's dependents.

Enter the interest earned on the account, but only if included in your federal or Idaho income. Also enter the name of the financial institution and your account number in the spaces provided. Part-year/Nonresident: Only enter interest included in Idaho income.

What contributions qualify for the Idaho College Savings Program?

You may contribute up to $4,000 ($8,000 if Married Filing Jointly) per year to a qualified Idaho college savings program and deduct the contribution. The account must be established with Upromise Investments, Inc. The account owner and beneficiary will be designated at the time the account is established. The account owner will have the right to make withdrawals for payment of higher education expenses for the beneficiary. The person that withdraws the funds must report the withdrawal amounts as income in accordance with Internal Revenue Code Section 529.

Additional information can be obtained on the Idaho College Savings Program website or by calling (866) 433-2533.

What are the requirements for the American Indian Income Subtraction?

American Indians who are enrolled members of a federally recognized tribe and who live and work on a reservation can deduct all reservation sourced income received while living and working on that reservation if the income was included as federal income. Income earned off the reservation can't be deducted. Income earned on the reservation can't be deducted if you live off the reservation.

What health insurance premiums qualify for a subtraction?

Deduct premiums you paid for health insurance for yourself, your spouse, and your dependents if those premiums haven't already been deducted or excluded from your income.

If you claimed a deduction for health insurance premiums as an Itemized Deduction on the federal portion of your return, use the worksheets below to calculate the deduction allowed for health insurance premiums. The worksheets follow the priority that Itemized Deductions first apply to health insurance premiums, then to long-term care insurance.

Idaho Medical Savings Account
If you take money out of your Idaho medical savings account to pay medical insurance premiums, no deduction is allowed. Since the health insurance costs are already deducted or accounted for, they can't be deducted a second time.

Salary Reduction Plans
Premiums paid through a cafeteria plan or other salary-reduction arrangement can't be included in the Idaho deduction for health insurance costs. For example, if your health insurance payments are deducted from your paycheck pretax, they don't qualify for the deduction.

Business Deductions
Premiums deducted as a business expense can't be included in the Idaho deduction for health insurance costs since these amounts are already deducted. This includes the amounts deducted as self-employed health insurance premiums deducted in arriving at federal adjusted gross income.

Social Security Medicare A and B
No deduction is allowed for the amount paid for employer required Social Security Medicare A. This is the amount listed as a deduction on almost every federal Form W-2 (W2).

If you voluntarily enroll in Medicare B or Medicare D, or aren't covered under Social Security and voluntarily enroll in Medicare A, the premiums you paid may be deducted.

Idaho Standard Deduction
If you don't itemize deductions for Idaho income tax purposes, but instead use the Idaho Standard Deduction, you don't have to reduce your health insurance costs by any amount claimed as a federal Itemized Deduction.

Federal Itemized Deduction Limitations
For federal purposes, the amount of medical expenses allowed as a deduction on the federal Form 1040, Schedule A, is required to be reduced by 10% of adjusted gross income for taxpayers under the age of 65. If a taxpayer or spouse is age 65 or older, the required reduction is 7.5% of adjusted gross income. The following worksheet shows how the limitation of the 7.5% of adjusted gross income required for federal purposes affects the amount of health insurance costs deductible for Idaho purposes.

If you aren't itemizing deductions for Idaho, skip lines 1-6 and enter zeros on lines 8, 12, and 13.

Health Insurance and Long-Term Care Insurance Deduction Limitations
1. Amount claimed for health insurance costs as an itemized deduction on your Federal return.
2. Amount claimed for long-term care insurance as an itemized deduction on your Federal return.
3. Additional medical expenses claimed as an itemized deduction on your Federal return.
4. Total medical expenses. Add lines 1, 2 and 3.
5. Age 65 or older, enter 7.5% of federal adjusted gross income. Under age 65, enter 10% of federal adjusted gross income.
6. Medical expense deduction allowed on your Federal return. (Line 4 less line 5. If less than zero, enter zero.)

Health Insurance
7. Enter the total paid for health insurance.
8. Portion of health insurance deduction allowed as an itemized deduction on your Federal return. Enter the lesser of line 1 or line 6.
9. Enter the total health insurance costs deducted elsewhere on the federal return.
10. Line 7 less lines 8 and 9.This is the amount to enter as your Idaho health insurance deduction allowed.

Long-Term Care Insurance
11. Enter the total paid for long-term care insurance.
12. Medical expense deduction not allocated to health insurance costs. Line 6 less line 1. If less than zero, enter zero.
13. Portion of long-term care insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 2 or line 12.
14. Enter the total long-term care insurance costs deducted elsewhere on the federal return.
15. Line 11 less lines 13 and 14. This is the amount to enter for your Long-term care insurance deduction allowed.

What long-term care insurance premiums qualify for a subtraction?

You may deduct the amount you paid in premiums for qualified long-term care insurance that are not otherwise deducted or accounted for. If you claimed a deduction for long-term care insurance as an Itemized Deduction on your federal return, calculate the long-term care insurance allowed as a deduction by using the worksheets below.

Qualified long-term care insurance includes any insurance policy that provides coverage for at least twelve consecutive months for yourself, your spouse, or your dependents for one or more necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance or personal care services, provided in a setting other than an acute care unit of a hospital. Group and individual annuities and life insurance policies that provide directly or that supplement long-term care insurance qualify. This includes a policy that provides for payment of benefits based upon cognitive impairment or loss of functional capacity.

Qualified long-term care insurance doesn't include any insurance policy that is offered primarily to provide coverage for the following:
  • Basic Medicare supplement
  • Basic hospital expense
  • Basic medical surgical expense
  • Hospital confinement indemnity
  • Major medical expense
  • Disability income or related asset protection
  • Accident only
  • Specified disease or specified accident
  • Limited benefit health
Life insurance policies that accelerate death benefits generally don't qualify.

Health Insurance and Long-Term Care Insurance Deduction Limitations
1. Amount claimed for health insurance costs on federal Form 1040, Schedule A
2. Amount claimed for long-term care insurance on federal Form 1040, Schedule A
3. Additional medical expenses claimed on federal Form 1040, Schedule A
4. Total medical expenses. Add lines 1, 2 and 3.
5. Age 65 or older, enter 7.5% of federal adjusted gross income. Under age 65, enter 10% of federal adjusted gross income.
6. Medical expense deduction allowed on the federal Form 1040, Schedule A. (Line 4 less line 5. If less than zero, enter zero.)

Health Insurance
7. Enter the total paid for health insurance.
8. Portion of health insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 1 or line 6.
9. Enter the total health insurance costs deducted elsewhere on the federal return.
10. Idaho health insurance deduction allowed. Line 7 less lines 8 and 9. Enter this amount on Form 39R, Line 18.

Long-Term Care Insurance
11. Enter the total paid for long-term care insurance.
12. Medical expense deduction not allocated to health insurance costs. Line 6 less line 1. If less than zero, enter zero.
13. Portion of long-term care insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 2 or line 12.
14. Enter the total long-term care insurance costs deducted elsewhere on the federal return.
15. Long term care insurance deduction allowed. Line 11 less lines 13 and 14. Enter this amount on Form 39R, Line 19.

What can be deducted for workers' compensation insurance?

A self-employed individual may deduct the actual cost of amounts paid for workers' compensation insurance coverage in Idaho, if the cost isn't deducted elsewhere.

What should be included with Other Subtractions?

Enter interest from Idaho Build America Bonds if you included the interest in your federal income. Don't enter any interest from non-Idaho Build America Bonds. Part-year/Nonresidents: Only include Idaho Build America Bonds if you included them in both federal and Idaho income.

For tax years beginning after December 31, 2014, if a taxpayer recovers part of a loss from a Ponzi-type scheme that wasn't allowed as a deduction in calculating Idaho taxable income, a deduction is allowed for the loss recovery to the extent the recovery amount is included in federal taxable income in the current year.

Don't include income earned in another state as a subtraction.

Don't include foreign taxes as a subtraction since they are claimed as part of the Idaho itemized deduction, if allowable. See the instructions for Itemized or Standard Deductions.

What qualifies for the Credit for Contributions to Idaho Educational Entities?

If you donated cash to qualified educational entities, you may claim a tax credit. Donations of goods or services no longer qualify.

The credit is limited to the smallest of the following:
  • One-half of the amount donated
  • 50% of your Idaho tax
  • $500 ($1,000 if Married Filing Jointly)
  • Your Idaho tax minus the amount of credit for income tax paid to other states
A qualified educational entity includes the following:
  • A nonprofit corporation, fund, foundation, research park, trust, or association organized and operated exclusively for the benefit of Idaho colleges and universities
  • A nonprofit, private or public Idaho school (elementary, secondary or higher education) or its foundation
  • Idaho education public broadcast system foundations
  • Idaho State Historical Society or its foundation
  • An Idaho public library or its foundation
  • An Idaho library district or its foundation
  • An Idaho public or private nonprofit museum
  • Idaho Commission for Libraries
  • Idaho Commission on Hispanic Affairs
  • Idaho Commission for the Blind and Visually Impaired
  • Idaho Council on Developmental Disabilities
  • Idaho State Independent Living Council
  • Idaho Council for the Deaf and Hard of Hearing

What qualifies for the Credit for Contributions to Idaho Youth and Rehabilitation Facilities?

If you donated cash or goods to a qualified center for independent living, to a youth or rehabilitation facility or its foundation, or to a nonprofit substance abuse center licensed by the Idaho Department of Health and Welfare, you may claim a tax credit.

The credit is limited to the smallest of the following (Note: This calculation is included in application):
  • One-half of the amount donated
  • 20% of your tax
  • $100 ($200 if Married Filing Jointly)
  • Your Idaho tax less credits for taxes paid to other states and the Credit for Contributions to Idaho Educational Entities
The qualified youth or rehabilitation facilities and their foundations are the following:
  • Anchor House, Coeur d'Alene
  • The Arc, Inc., Boise
  • The Children's Home Society of Idaho, Inc., Boise
  • Children's Village, Inc., Coeur d'Alene
  • Dawn Enterprises, Inc., Blackfoot
  • Development Workshop, Inc., Idaho Falls
  • Gem Youth Services, Inc., Emmett
  • High Reachers, Inc., Mountain Home
  • Hope House, Inc., Nampa
  • Idaho Drug Free Youth, Inc., Coeur d'Alene
  • Idaho Elks Rehabilitation Hospital, Inc., Boise
  • Idaho Youth Ranch
  • Kinderhaven, Sandpoint
  • Learning Lab, Inc., Boise
  • Magic Valley Rehabilitation Services, Inc., Twin Falls
  • New Day Products, Inc., Pocatello
  • Northwest (North Idaho) Children's Home, Inc.
  • Opportunities Unlimited, Inc., Lewiston
  • Panhandle Special Needs, Inc., Sandpoint
  • Project P.A.T.C.H., Planned Assistance for Troubled Children
  • Project Safe Place
  • Shepherd's Home, Inc., McCall
  • Transitional Employment Services for the Handicapped, Coeur d'Alene
  • Walker Center, Gooding
  • Western Idaho Training Co., Inc., Caldwell
  • Women's and Children's Alliance
  • Winchester Occupational Workshop, Winchester
The following are the qualified centers for independent living:
  • Disability Action Center Northwest, Moscow and Coeur d'Alene
  • Living Independence Network Corporation, Boise and Twin Falls
  • Living Independently For Everyone, Inc., Blackfoot, Idaho Falls and Pocatello

What qualifies for the Credit for Live Organ Donation Expenses?

A living taxpayer who donates a qualified organ for transplanting in another individual may be able to claim a credit up to $5,000 for expenses related to the donation.

In order to claim the credit, one or more of the following organs must be donated:
  • Human bone marrow
  • Any part of:
    • an intestine
    • a kidney
    • a liver
    • a lung
    • a pancreas
Qualified expenses are those incurred by the taxpayer or dependent for travel, lodging or lost wages and are not reimbursed to the taxpayer by any person. The expenses must be directly related to the live organ donation by the taxpayer or a dependent of the taxpayer.

Any unused credit may be carried over five years.

What business income tax credits and credit recapture are available on Form 44?

Part 1 - Business Income Tax Credits

Line 1 - Investment Tax Credit
If you acquire an asset for use in your business, you may have earned an Investment Tax Credit (ITC).

Credit Allowed: Enter the credit allowed from Form 49, Part II, Line 8.

Carryover: Enter the credit available less the credit allowed: Form 49, Part II, Line 7 less the amount on Line 8.

Line 2 - Credit for Production Equipment Using Postconsumer Waste
If you purchased equipment that manufactures a product from postconsumer or postindustrial waste, you may be entitled to a tax credit. The credit is 20% of your cost to purchase qualified equipment.

Qualified equipment is machinery or equipment in Idaho with a useful life of three years or more. In addition, 90% of the equipment's production must result in products utilizing postconsumer or postindustrial waste.

Product is any manufactured material that is composed of at least 50% of postconsumer or postindustrial waste and offered for sale.

Product doesn't include shredded material unless it is incorporated directly into the manufacturing process.

Postconsumer waste or postindustrial waste includes only glass, paper, or plastic that have been, or would have been, disposed of as solid waste. It doesn't include radioactive or hazardous waste.

Attach a schedule showing your computations, listing the qualified equipment, identifying the postconsumer or postindustrial waste products, and identifying the newly manufactured products.

Credit Allowed: Enter the smallest of:
  • $30,000
  • 20% of the cost to purchase qualified equipment plus the amount of credit carried forward, or
  • Tax on Line 20 less the amounts on Line 22, Form 39R, Part E, Lines 1 and 2, and Form 44, Part I, Line 1
Carryover: Enter the amount of credit available less the amount allowed. Attach a schedule showing your computations. You may carry forward the unused portion of the credit up to seven years.

Line 3 - Promoter Sponsored Event Credit
If you issued temporary sales tax permits to participants of a promoter sponsored event on behalf of the Tax Commission, you may claim a $1 credit for each temporary permit issued during the tax year. Promoter sponsored events include swap meets, flea markets, gun shows, and fairs. You must have filed Form ST-124 with the Tax Commission to qualify for the credit.

Credit Allowed: Enter the smaller of:
  • $1 for each temporary permit issued during the tax year, or
  • Tax on Line 20 less the amounts on Line 22, Form 39R, Part E, Lines 1 and 2, and Form 44, Part I, Lines 1 and 2
Line 4 - Credit for Qualifying New Employees
Idaho allows a credit for qualifying new employees.

Credit Allowed: Enter the allowable credit from Form 55, Part II, Line 15. Attach Form 55.

Carryover: Enter the amount of credit carryover to future years from Form 55, Part II, Line 34.

Line 5 - Credit for Idaho Research Activities
If you incurred expenses for research conducted in Idaho, you may have earned the credit for Idaho research activities.

Credit Allowed: Enter the credit allowed from Form 67, Line 29. Attach Form 67.

Carryover: Enter the amount of credit carryover to future years as computed on Form 67, Line 30.

Line 6 - Broadband Equipment Investment Credit
If you acquired qualified broadband equipment to use in your business in Idaho, it may qualify for the broadband equipment investment credit. You may also claim this credit if you acquired the credit through a transfer.

Credit Allowed: Enter the credit allowed from Form 68, Line 18. Attach Form 68.

Carryover: Enter the amount of credit carryover to future years as computed on Form 68, Line 19.

Line 7 - Incentive Investment Tax Credit
You may claim this credit if you have Incentive Investment Tax Credit carryover from the tax year beginning in 2001 or received the credit by transfer or unitary sharing.

Credit Allowed: Enter the credit allowed from Form 69, line 16. Attach Form 69.

Carryover: Enter the amount of credit carryover to future years as computed on Form 69, Line 17.

Line 8 - Small Employer Investment Tax Credit
You may claim this credit if you have certified by filing Form 89SE that you have met or will meet the tax incentive criteria for this credit and you have acquired an asset for use in your business that otherwise qualifies for the investment tax credit (ITC).

Credit Allowed: Enter the credit allowed from Form 83, Line 28. Include Form 83.

Carryover: Enter the amount of credit carryover to future years from Form 83, Line 29.

Line 9 - Small Employer Real Property Improvement Tax Credit
You may claim this credit if you have certified by filing Form 89SE that you have met or will meet the tax incentive criteria for this credit and you have acquired real property improvements for use in your business at the project site during the project period.

Credit Allowed: Enter the credit allowed from Form 84, Line 26. Include Form 84.

Carryover: Enter the amount of credit carryover to future years from Form 84, Line 27.

Line 10 - Small Employer New Jobs Tax Credit
You may claim this credit if you have certified by filing Form 89SE that you have met or will meet the tax incentive criteria for this credit and you have qualified new employees at the project site during the project period.

Credit Allowed: Enter the credit allowed from Form 85, Line 35. Include Form 85.

Carryover: Enter the amount of credit carryover to future years from Form 85, Line 36.

Line 11 - Biofuel Infrastructure Investment Tax Credit
You may claim this credit if you have qualifying biofuel infrastructure investment tax credit carryover from a previous year.

Credit Allowed: Enter the credit allowed from Form 71, Line 26. Include Form 71.

Carryover: Enter the amount of credit carryover to future years from Form 71, Line 27.

Part II - Tax from Recapture of Income Tax Credits

Line 1 - Tax From Recapture of Investment Tax Credit
If you have claimed an ITC on property that ceases to qualify before the end of the five-year recapture period, you must compute the ITC recapture. This includes property moved outside of Idaho.

Enter the amount from Form 49R, Part III, Line 15. Attach Form 49R.

Line 2 - Tax from Recapture of Broadband Equipment Investment Credit
If you have claimed a Broadband Equipment Investment Credit on property that ceases to qualify before the end of the five-year recapture period, you must compute the Broadband Equipment Investment Credit recapture. This includes property that ceases to qualify for the ITC.

Enter the amount from Form 68R, Part III, Line 15. Attach Form 68R.

Line 3 - Tax from Recapture of Small Employer Investment Tax Credit
If you have claimed a Small Employer Investment Tax Credit on property that ceases to qualify before the end of the five-year recapture period, you must compute the Small Employer Investment Tax Credit recapture. This includes property moved outside of Idaho.

You must also compute recapture if you failed to meet the tax incentive criteria required to qualify for this credit at the project site during the project period.

Enter the amount from Form 83R, Part III, Line 15. Attach Form 83R.

Line 4 - Tax from Recapture of Small Employer Real Property Improvement Tax Credit
If you have claimed a Small Employer Real Property Improvement Tax Credit on property that ceases to qualify before the end of the five-year recapture period, you must compute the Small Employer Real Property Improvement Tax Credit recapture.

You must also compute recapture if you failed to meet the tax incentive criteria required to qualify for this credit at the project site during the project period.

Enter the amount from Form 84R, Part III, Line 15. Attach Form 84R.

Line 5 - Tax from Recapture of Small Employer New Jobs Tax Credit
If you have claimed a Small Employer New Jobs Tax Credit and you failed to maintain the required level of new employees for the entire five-year recapture period, you must compute the Small Employer New Jobs Tax Credit recapture.

You must also compute recapture if you failed to meet the tax incentive criteria required to qualify for this credit at the project site during the project period.

Enter the amount from Form 85R, Line 13. Attach Form 85R.

Line 6 - Biofuel Infrastructure Investment Tax Credit
If you have claimed a Biofuel Infrastructure Investment Tax Credit on property that ceases to qualify before the end of the five-year recapture period, you must compute Biofuel Infrastructure Investment Tax Credit recapture. This includes property no longer used to sell biofuel in Idaho.

Enter the amount from Form 71R, Part III, Line 15. Attach Form 71R.

How do I calculate Idaho use tax owed?

If you made purchases during the year without paying sales tax, you must report use tax due on such purchases. Examples include magazine subscriptions, out-of-state catalog purchases, merchandise purchased over the Internet, book and record clubs, purchases in a state where no sales tax is charged, etc. Multiply the total amount of these purchases by 6% (.06).

If you have a sales or use tax account, continue to report the tax on these purchases on your sales and use tax returns.

What is the Nongame Wildlife Conservation Fund?

Contributions are used to ensure the conservation of nongame wildlife, rare plants, and their habitats in Idaho, to promote greater awareness of and appreciation for species that are not hunted, fished, or trapped, and to increase opportunities to view and enjoy "watchable" wildlife. Donations are used for a variety of projects including studies of rare animals in an effort to better manage them so they don't become threatened or endangered, educational programs and community projects, development of wildlife viewing sites throughout the state, informational brochures, and a nongame wildlife newspaper series available to the public and used by teachers. Contact the Department of Fish and Game at (208) 334-2920.

What is the Children's Trust Fund and Child Abuse Prevention Fund?

Contributions are used to protect our children, Idaho's single greatest resource. The Children's Trust supports work in communities throughout Idaho to prevent child abuse and neglect before it ever occurs. Preventing child abuse ensures the future prosperity of the state, supports communities and enhances healthy child development. Funded programs include family support and strengthening programs, parent education, voluntary home visitation for first-time parents, public awareness of the life-long consequences of child abuse and neglect, child abuse prevention and child safety education in schools. Contact the Idaho Children's Trust Fund/Prevent Child Abuse Idaho at (208) 386-9317 or visit the Idaho Children's Trust Fund website.

What is the Idaho Guard & 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. The Idaho Guard and Reserve Family Support Fund (IGRFSF) helps members of the Idaho Air National Guard, the Idaho Army National Guard, the Air Force Reserve, the Army Reserve, the Navy & Marine Corps Reserve, and the Coast Guard Reserve, along with their families, when duty calls. The fund acts as an emergency relief fund and operates as a 501(c)(3) nonprofit corporation. Contact the Idaho Guard and Reserve Family Support Fund, Inc., at (208) 272-4361.

What is the American Red Cross of Idaho Fund?

Contributions provide food, shelter, clothing, and other help for disaster victims. Also, funds supply items such as bedding and cots in areas around the state to prepare for large scale emergencies. Donations also support the Service to the Armed Forces communications program, helping active duty military and their loved ones in Idaho communicate during family emergencies. Contact the American Red Cross of Greater Idaho at (800) 853-2570.

What is Special Olympics Idaho?

Contributions provide support for year-round sports training and competition for children and adults with developmental disabilities in Idaho. Through sports training and competition, Special Olympics Idaho teaches life skills such as dedication, perseverance and focus, while instilling confidence. With these skills, 50% of Special Olympics athletes are employed while only 10%-14% of the general population of people with developmental disabilities hold jobs. Donations to this fund will be used to buy sports equipment, uniforms, food, lodging and transportation services for competitions, as well as health screenings, outreach programs and family support systems for adults and children with developmental disabilities. Contact Special Olympics Idaho at (208) 323-0482 or visit the Idaho Special Olympics website.

What is the Veterans Support Fund?

Contributions help provide specialized medical/physical therapy equipment for the three State Veterans Homes, support veterans organizations throughout the state, assist homeless veterans programs in Idaho, promote and market the activities of the Office of Veterans Advocacy, develop an ongoing program for nurse recruitment and retention, supplement training for state and county service officers, and create an Idaho division of Veterans Services scholarship program to help veterans fund their education. Contact the Idaho Division of Veterans Services at (208) 577-2310.

Can I receive the Idaho Grocery Credit even though I'm not required to file an Idaho tax return?

Yes, even if you don't have any income or have low enough income that you aren't required to file an Idaho tax return, you can still file an Idaho tax return in order to get the refundable Idaho Grocery Credit.

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