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Idaho Idaho Supplemental Schedule (Resident)
Extracted from PDF file 2023-idaho-form-39r.pdf, last modified September 2023Idaho Supplemental Schedule (Resident)
2023 Form 39R Resident Supplemental Schedule Names as shown on return Social Security number A. Additions. See instructions, page 27. 1. Federal net operating loss deduction included on Form 40, line 7 .......................................... ▪ 1 00 2. Capital loss carryover incurred outside the state before becoming an Idaho resident ............ ▪ 2 00 3. Non-Idaho state and local bond interest and dividends ........................................................... ▪ 3 00 4. Idaho college savings account withdrawal .............................................................................. ▪ 4 00 5. Bonus depreciation. Include federal Form 4562s Check the box if you have a current year loss limitation. See instructions ▪ .................. ▪ 5 00 6. Other additions. Include explanation ....................................................................................... ▪ 6 00 7. Total additions. Add lines 1 through 6. Enter here and on Form 40, line 8 .............................. ▪ B. Subtractions. See instructions, page 29. 1. Idaho net operating loss carryover ▪ 7 00 1 00 2. State income tax refund, if included in federal income ............................................................ ▪ 2 00 3. Interest from U.S. government obligations .............................................................................. ▪ 3 00 ....................... ▪ 4 00 e. Add lines 5a through 5d. Can’t exceed $5,000 ................................................................ ▪ 5e 00 6. Child/dependent care. Complete worksheet on page 30, and include federal Form 2441 ..... ▪ 6 00 7. Social Security and railroad benefits, if included in federal income ........................................ ▪ 7 00 f. Enter the smaller of line 8d or 8e here ............................................................................. ▪ 8f 00 9. Technological equipment donation .......................................................................................... ▪ 9 00 10. Idaho capital gains deduction. Include Form CG .................................................................... ▪ 10 00 11. Active duty military pay earned outside of Idaho ..................................................................... ▪ 11 00 12. Adoption expenses .................................................................................................................. ▪ 12 00 Idaho net operating loss carryback 4. Energy efficiency upgrades ▪ Enter total here .............................. Description 5. Alternative energy device deduction Year Acquired Type of Device Total Cost Percentage a. 2023 $ X 40% b. 2022 $ X 20% c. 2021 $ X 20% d. 2020 $ X 20% = 5a ▪ = 5b ▪ 00 = 5c ▪ = 5d ▪ 00 00 00 8. Retirement benefits deduction. See instructions for qualifications. ▪ 8a 00 b. Federal Railroad Retirement benefits received ........................... ▪ 8b 00 c. Social Security benefits received ................................................ ▪ 8c 00 d. Line 8a minus lines 8b and 8c. If less than zero, enter zero ....... 8d 00 e. Qualifying retirement benefits included in federal income ........... ▪ 8e 00 a. If single, enter $43,524 or if married filing jointly, enter $65,286 13. Idaho medical savings account. Contributions Interest ▪ 13 00 14. Idaho college savings program ............................................................................................... ▪ 14 00 ▪ 15 00 16. Idaho lottery winnings, less than $600 per prize ..................................................................... ▪ 16 00 17. Income earned on a reservation by an American Indian ......................................................... ▪ 17 00 Financial institution Account number 15. Home for the aged or developmentally disabled. Complete Part E, line 3 ............................. EFO00088 09-07-2023 Page 1 of 2 Form 39R Names as shown on return 2023 (continued) Social Security number 18. Health insurance premiums ..................................................................................................... ▪ 18 19. Long-term care insurance ....................................................................................................... ▪ 19 00 20. Workers’ compensation insurance .......................................................................................... ▪ 20 00 00 21. Bonus depreciation. Include Form 4562s ................................................................................ ▪ 21 22. First-time home buyer savings account. Financial institution ▪ Contributions 00 Interest Account number By checking the box, I attest that I am a first-time home buyer. See instructions. ▪ 22 00 23. Other subtractions. Include explanation .................................................................................. ▪ 23 00 24. Total subtractions. Add lines 1 through 4, 5e through 7, and 8f through 23. Enter here and on Form 40, line 10 ........................................................................................ ▪ 24 00 C. Credit for income tax paid to other states. See instructions, page 37. This credit is being claimed for taxes paid to: ▪ (State name) 1. Idaho tax, Form 40, line 20. Enter amount here ................................. 2. Federal adjusted gross income earned in other state and taxed by both states adjusted for Idaho modifications. See instructions .......... ▪ 1 3. Idaho adjusted income. See instructions ........................................... 3 4. Divide line 2 by line 3. Enter percentage here ................................... 4 00 Include a copy of the income tax return and 00 a separate Form 39R 00 for each state for which a credit is claimed. 2 % 5. Multiply line 1 by line 4. Enter amount here ............................................................................. 5 00 6. Other state’s tax due minus its income tax credits. See instructions ....................................... ▪ 6 00 7. Enter the smaller of lines 5 or 6 here and on Form 40, line 22 ................................................ ▪ D. Credits for Idaho educational entity and Idaho youth and rehabilitation facility contributions, and live organ donation expenses. See instructions, page 37. 7 00 1. Credit for Idaho educational entity contributions ..................................................................... ▪ 1 00 2. Credit for Idaho youth and rehabilitation facility contributions ................................................. ▪ 2 00 3. Credit for live organ donation expenses .................................................................................. ▪ 3 00 4 00 4. Total credits. Add lines 1 through 3. Enter total here and on Form 40, line 23 ........................ Maintaining a home for a family member age 65 or older or a family member with a E. developmental disability. See instructions, page 39. 1. Did you maintain a home for an immediate family member age 65 or older (not including you and your spouse) and provide more than one-half of that person’s support? ................... 2. Did you maintain a home for an immediate family member with a developmental disability (including you and your spouse) and provide more than one-half of that person’s support? .... Yes No Yes No 3. List each family member you’re claiming: First Name Family Member’s Name Last Name Family Member’s Social Security Number Relationship to Person Filing Return Family Member’s Birthdate (mm/dd/yyyy) 4. Total amount claimed ($100 for each qualifying member but not more than $300). Enter here and on Form 40, line 44 ......................................................................................... F. Check Here if Developmentally Disabled 00 4 Dependents: (Continued from Form 40, page 1, line 6) First Name EFO00088 09-07-2023 Last Name Social Security Number Birthdate (mm/dd/yyyy) Page 2 of 2 2023 Form 39R — Instructions Resident Supplemental Schedule Complete Form 39R if you’re filing Form 40. If you’re filing Form 43, complete Form 39NR. Part A — Additions Line 1 Federal Net Operating Loss (NOL) Deduction Generally the allowable federal NOL carryover isn’t the same amount allowed on the Idaho return. Enter any NOL carryover included on your federal return. You’ll claim the allowable Idaho NOL carryover as a subtraction on Part B, line 1. Tax Year Line 2 Capital Loss Carryover If you claimed a capital loss or carryover from activities not taxable by Idaho or before you became an Idaho resident, enter the amount used in calculating your net capital gain or loss reported on your federal Schedule D. Use the worksheet below to calculate your Idaho capital gain (loss) and capital loss carryover. Idaho Capital Gain or Loss Adjustment Worksheet Schedule D Don’t complete this worksheet if all of your Idaho gains (losses) are the same as your federal gains (losses). List the Form 1099-B transactions reported on federal Schedule D, Part I lines 1a through 3 and Part II, lines 8a through 10 that you sold after you became an Idaho resident. If you don’t have any Form 1099-B transactions for the current tax year, go to line 2. (a) Description of property Example: 100 shares of “XYZ” Co. (b) Date acquired (mm/dd/yyyy) (c) Date sold (mm/dd/yyyy) (d) Sales price (e) Cost or other basis (f) Gain or (loss) If you have additional transactions, list on a Supplemental Schedule and enter the total gain or (loss) in column (f). 1. Total gain/(loss) ...................................................................................................................... 2. Enter the total gain/(loss) amounts that are Idaho-source on the following lines: a. Schedule D, Line 4 b. Schedule D, Line 5 c. Schedule D, Line 11 d. Schedule D, Line 12 1 Combine the amounts from a, b, c, and d. Enter the total amount ........................................... 3. Enter the total capital gain distributions (federal Form 1099-DIV, box 2a) you received as an Idaho resident ........................................................................................... 2 4. Idaho capital loss carryover from prior year, if any .................................................................. 4 5. Tax year ________. Total Idaho gain (loss). Combine lines 1, 2, 3, and 4. If a (loss), go to line 6. If a gain, go to line 7 ............................................................................ 6. Enter the smaller loss of: (a) the (loss) on line 5; or (b) ($3,000) for married, qualifying widow(er) or head of household. ($1,500) if single or married filing separately ............................................................... 3 5 6 7. Enter the Idaho gain from line 5 or (loss) from line 6 ............................................................... 7 8. Enter the (loss - if any) from federal Form 1040 or 1040-SR, line 7. If no loss is reported, enter zero .............................................................................................. 8 9. Subtract line 8 from line 7. Enter the difference here and on Form 39R, Part A, line 2 ........... 9 EIN00046 11-06-2023 Page 27 of 52 Form 39R — Instructions Idaho Capital Loss Carryover Worksheet Tax Year If the line 5 loss from the Idaho Capital Gain or Loss Adjustment Worksheet is more than ($3,000) or ($1,500 for MFS and Single), subtract line 6 from line 5. This is your Idaho capital loss carryover ................ Keep these worksheets for your records. Example: For the current tax year you reported capital loss carryovers totaling $40,000 that were incurred before moving to Idaho. These are used to offset $26,000 of Idaho capital gains earned in the current year, resulting in a capital loss of $3,000 allowed on the federal return. For the current tax year, you must add back $29,000 on line 2 ($26,000 gain offset plus $3,000 loss allowed). The remainder of the $11,000 loss carryover must be added back in future years to the extent allowed as a loss and used to offset gain. Line 3 Non-Idaho State and Local Bond Interest and Dividends Enter the amount of interest and dividends, less the related expenses, you received from municipal bonds of other state governments, including their counties or cities or from obligations of any foreign country. This income isn’t reported on your federal return. This includes your distributive share of interest and dividends not taxable under the IRC from Form ID K-1, Part IV, Column B, line 21. Don’t include the interest income from Idaho municipal securities reported on Form ID K-1, Part IV, Column B, line 24. Line 4 Idaho College Savings Account Withdrawal If you made a nonqualified withdrawal from an Idaho college savings account, enter the amount withdrawn less any amounts reported on your federal Form 1040 or 1040-SR. Include withdrawals from Idaho college savings programs that were transferred to a qualified program operated by another state or a qualified Achieving a Better Life Experience (ABLE) program. The amount added back is limited to your contributions deducted in the year of transfer and the previous tax year. EIN00046 11-06-2023 2023 (continued) Line 5 Bonus Depreciation If you claimed bonus depreciation for federal purposes for property acquired before 2008 or after 2009: • Complete a separate federal Form 4562 or detailed computation for Idaho depreciation purposes as if the special depreciation allowance hadn’t been claimed • Compute the Idaho adjusted basis and any gains or losses from the sale or exchange of the property using the Idaho depreciation amounts • If the federal depreciation (including gains and losses) is more than the Idaho depreciation (including Idaho gains and losses), include the difference on this line; otherwise, enter the difference on Part B, line 21 Include on this line your distributive share of bonus depreciation from Form ID K-1, Part IV, Column B, line 22. Don’t enter any amounts for property acquired during 2008 and 2009. If you have a current year loss limitation for the following: • At Risk (IRC Section 465) • Passive Loss (IRC Section 469) • Partnership Basis (IRC Section 704(d)) • Shareholder Basis (IRC Section 1366(d) Check the box and include Form DBDA. Line 6 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 taxable by Idaho includes the ordinary income portion and the amount eligible for the federal capital gain election. Partner and Shareholder Additions Include on this line the state, municipal, and local income tax additions from Form ID K-1, Part IV, Column B, line 20 and the other additions from Form ID K-1, Part IV, Column B, line 23. 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, Idaho taxes the withdrawal. Report this amount as an other addition. Eligible medical expenses include medical care, vision care, dental care, medical insurance premiums, and long-term care expenses. Page 28 of 52 Form 39R — Instructions If you make a taxable withdrawal and you’re under age 59 1/2, penalty applies to the withdrawal. The penalty is 10% of the amount withdrawn. Report the penalty on Form 40, line 52, and check the box for an unqualified withdrawal. First-time Home Buyer Savings Account Withdrawals If you withdraw funds from an Idaho first-time home buyer savings account and don’t use the funds to pay eligible home costs, Idaho taxes the withdrawal. Report this amount as an other addition. Eligible home costs include: • Down payment for the purchase of an Idaho home • Costs, fees, taxes, or payments for the purchase of an Idaho home 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. Emergency Rental Assistance Include on this line any amounts excluded from taxable income for funds received according to the emergency rental assistance program established under Public Law 116-260 for COVID relief. Part B — Subtractions Line 1 Idaho Net Operating Loss (NOL) Carryover and Carryback Enter the Idaho NOL carryover. Include Form 56 or a schedule showing the application of the loss. If this is an amended return to claim an NOL carryback, enter the amount of the NOL carryback. Include Form 56 or a schedule showing the application of the loss. Enter the total of the NOL carryover and carryback amounts. Line 2 State Income Tax Refund If you itemized your deductions on federal Form 1040, enter the amount of all state income tax refunds and state tax rebates included in income on federal Schedule 1, line 1. Line 3 Interest from U.S. Government Obligations Idaho doesn’t tax interest income you received from U.S. government obligations. Deduct any U.S. government interest included in federal adjusted EIN00046 11-06-2023 2023 (continued) gross income, Form 40, line 7. Examples of U.S. government obligations include: • Banks for Cooperatives • Federal Farm Credit Banks • Federal Financing Bank • Federal Homeowners Loan Bank • Federal Intermediate Credit Bank • Federal Land Bank • Guam • Puerto Rico • Student Loan Marketing Association • Tennessee Valley Authority Bonds • Territory of Alaska • Territory of Hawaii • Territory of Samoa • U.S. Series EE and HH Bonds • U.S. Treasury Bills and Notes • Virgin Islands Idaho taxes interest income received from the Federal National Mortgage Association (FNMA) and the Government National Mortgage Association (GNMA). If you have interest income from a mutual fund that invests in both nonexempt securities and exempt U.S. government securities, you can deduct the portion of the interest that’s attributable to direct U.S. government obligations. This amount must be identified by the mutual fund to be deductible. This includes your distributive share from Form ID K-1, Part IV, line 25. Line 4 Energy Efficiency Upgrade To qualify for this deduction, your Idaho residence must have existed, been under construction or had a building permit issued on or before January 1, 2002, and must be your primary residence. 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 when the improvement is made. Contact the Idaho Division of Building Safety at dbs.idaho.gov for more information. Examples of energy efficiency upgrades include: • Insulation that’s added to existing insulation. Insulated siding doesn’t qualify unless the Page 29 of 52 Form 39R — Instructions • • • • cost of the siding and the insulating material is stated separately. The cost of the insulating material is the only thing that 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 also is deductible. Enter the energy efficiency upgrade installed in your Idaho residence. If you have more than one, enter multiple. Enter the total amount on line 4. Line 5 Alternative Energy Device Deduction If you install an alternative energy device in your Idaho residence, you can 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: • A system using solar radiation, wind, or geothermal resource primarily to provide heating or cooling or produce 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. You must take the noncertified wood stove to a site authorized by the Idaho Division of Environmental Quality (DEQ) within 30 days from the date of EIN00046 11-06-2023 2023 (continued) purchase of the qualifying device. The DEQ will give you a receipt to verify it received and destroyed the noncertified wood stove. You must install the natural gas or propane heating unit or the EPA-certified wood stove or pellet stove in the same tax year that you surrender the nonqualifying wood stove to the DEQ. Lines 5a – 5d Complete the lines that apply to the year you acquired the device. For example, if you acquired the device in 2020, complete line 5d. Enter the device type and total cost. Multiply the total cost by the appropriate percentage. Line 5e can’t be more than $5,000. Line 6 Child and Dependent Care If you claimed the federal Credit for Child and Dependent Care Expenses, you’re allowed an Idaho deduction for the child care expenses you paid for the care of your dependents. The Idaho deduction is a different amount than the federal credit. Complete this worksheet to determine your Idaho child or dependent care deduction. Refer to federal Form 2441 to determine amounts to enter on lines 1 through 6. Worksheet 1. Enter the amount of qualified expenses you incurred and paid in 2023. Don’t include amounts paid by your employer or excluded from taxable income ........... 2. Enter $12,000 for one or more child or dependent cared for during the year ...... 3. Enter excluded benefits from Part III of Form 2441 .............................................. 4. Subtract line 3 from line 2. If zero or less, stop. You can’t claim the deduction ................................................ 5. Enter your earned income ...................... 6. If married filing a joint return, enter your spouse’s earned income. All others enter the amount from line 5 .................. 7. Enter the smallest of lines 1, 4, 5, or 6 here and on Form 39R, Part B, line 6 ..... Include federal Form 2441, Child and Dependent Care Expenses, with your return. Line 7 Social Security and Railroad Benefits Idaho doesn’t tax Social Security benefits, benefits paid by the Railroad Retirement Board, or Canadian Page 30 of 52 Form 39R — Instructions Social Security benefits (OAS, QPP or CPP) that are taxable on your federal return. Exempt payments from the Railroad Retirement Board include: • Retirement, supplemental, and disability annuities • Unemployment and sickness benefits Enter the taxable amount of Social Security benefits from Form SSA-1099 or Social Security equivalent railroad benefits from Form RRB-1099 included on your federal Form 1040 or 1040-SR, line 6b. Don’t enter the amount reported on Form 1040 or 1040-SR, line 6a. Enter the taxable amount of non-Social Security equivalent railroad benefits from Form RRB-1099R included on your federal Form 1040 or 1040-SR, line 5b. Don’t enter the amount reported on Form 1040 or 1040-SR, line 5a. If subtracting benefits from the Railroad Retirement Board, you must include Form RRB-1099 or RRB-1099-R with your return. Disability pension paid by the Federal Railroad Retirement Act may be included as wages on Form 1040 or 1040-SR, line 1 if you’re under the minimum retirement age. Line 8 Retirement Benefits Deduction for Qualified Retirement Benefits You may be able to deduct some of the qualifying retirement benefits and annuities you receive. The Idaho Retirement Benefits Deduction has a two-part qualification. You must qualify for both parts to receive this deduction. Part One – Age, Disability, and Marital/Filing Status The recipients must be at least age 65 or be classified as disabled and be at least age 62. The following individuals are classified as disabled: • An individual recognized as disabled by the Social Security Administration, the Railroad Retirement Board, or the Office of Management and Budget • A veteran of a U.S. war with a service-connected disability rating of 10% or more • A veteran of a U.S. war with a nonservice-connected disability pension • A person who has a physician-certified permanent disability with no expectation of improvement EIN00046 11-06-2023 2023 (continued) If you’re married, you can’t claim this deduction if you file separately. If you’re an unremarried widow or widower of a pensioner and receive qualifying survivor benefits, you may be eligible to claim the retirement benefit deduction if you meet the age/disability requirements. Part Two – Qualified Retirement Benefits The recipients must meet the requirements in Part One, and their qualified retirement benefits must be one of the following: • Civil Service Employees: Retirement annuities paid by the United States of America Civil Service Retirement System (CSRS), the Foreign Service Retirement and Disability System (FSRDS), or the offset programs of these two systems. To qualify for the deduction, the employee must have established eligibility before 1984. Retirement annuities paid to a retired federal employee under the Federal Employees Retirement System (FERS) don’t qualify for the deduction. If you received a CSA-1099, 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 9, the benefits are paid out of FERS and don’t qualify. If the first digit is 8, look at your Notice of Annuity Adjustment from the Office of Personnel Management. The notice shows how much of your benefits are paid from CSRS and how much are paid from FERS. Only the portion paid from CSRS qualifies for this deduction. If the first digit is 0, 1, 2, 3, or 4, the benefits are paid out of CSRS. • Idaho Firefighters: Retirement benefits paid by the Public Employee Retirement System of Idaho (PERSI) relating to the Firemen’s Retirement Fund. If you received a 1099R and your account number includes the FRF (Firemen’s Retirement Fund) designation, your benefits may qualify for the deduction. Benefits paid out of the PERSI Base Plan don’t qualify for the deduction. • Police Officers 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. Also, benefits paid by PERSI relating to Idaho police officer employment not included in the federal Social Security retirement system. For example, benefits paid out of the city police retirement Page 31 of 52 Form 39R — Instructions funds for the cities of Coeur d’Alene, Lewiston, and Pocatello may qualify for the deduction. Similarly, benefits paid by PERSI relating to the old Idaho Falls Policemen’s Retirement Fund may qualify for the deduction. If you received a 1099R and your account number includes the IFP (Idaho Falls Police) designation, your benefits may qualify for the deduction. Benefits paid out of the PERSI Base Plan don’t qualify for the deduction. • Service Members: Retirement benefits paid by the United States to a retired member of the U.S. military. Disability pension paid by the Federal Railroad Retirement Act may not be included on your Form RRB-1099 or RRB-1099-R, if you’re under the minimum retirement age. Instead it may be included on Form 1040 or 1040-SR, line 1 as wages. Line 8a The maximum amounts that can be deducted for 2023 are: Married filing jointly: • Recipient age 65 or older ....................... • Recipient age 62 or older and disabled ... Single: • Age 65 or older ...................................... • Age 62 or older and disabled .................. $65,286 $65,286 $43,524 $43,524 These amounts must be reduced by retirement benefits received by you and your spouse under the Federal Social Security Act and the Federal Railroad Retirement Act. The amount deducted can’t be more than the amount of qualified benefits included in federal income. Line 8b. Enter the amount of retirement benefits you (and your spouse) received under the Federal Railroad Retirement Act. Include on this line: • The net Social Security equivalent benefit portion from federal Form RRB-1099, Box 5 • The “total gross paid” amount from federal Form RRB-1099-R, Box 7, minus any repayment from Box 8; and • Any railroad retirement disability benefit included as wages on federal Form 1040 or 1040-SR, line 1 Line 8c. Enter the amount of retirement benefits you (and your spouse) received under the Federal Social Security Act, Box 5 of your Form SSA-1099s. If you EIN00046 11-06-2023 2023 (continued) or your spouse received Canadian Social Security benefits that you included in your federal taxable income, include those amounts received. Line 9 Technological Equipment Donation Enter the lesser of cost or fair market value of technological equipment donated to one or more of the following Idaho educational institutions or libraries located in Idaho: • Public or nonprofit private elementary or secondary school • Public or nonprofit private college or university • Public library or library district 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. Include your distributive share from the appropriate column of Form ID K-1, Part IV, line 26. The deduction from a pass-through entity can’t be more than the amount of pass-through income minus deductions of the entity making the contribution. Line 10 Idaho Capital Gains Deduction You may be able to deduct 60% of the capital gain net income reported on federal Schedule D from the sale of qualified Idaho property described below. (a) Real property held for at least 12 months, or (b) Tangible personal property used in a revenue-producing enterprise and held for at least 12 months. A revenue-producing enterprise means: • Producing, assembling, fabricating, manufacturing, or processing any agricultural, mineral, or manufactured product • Storing, warehousing, distributing, or selling at wholesale any products of agriculture, mining, or manufacturing • Feeding livestock at a feedlot • Operating laboratories or other facilities for scientific, agricultural, or animal husbandry, or industrial research, development, or testing (c) Cattle and horses held for at least 24 months and other livestock used for breeding held for at least 12 months (d) Timber held for at least 24 months (e) Certain sales of partnership interests. See Idaho Code 63-3022H(3)(f) for more information. Page 32 of 52 Form 39R — Instructions 2023 (continued) Note: Gains from the sale of stocks and other intangibles don’t qualify. amounts deducted on federal Form 1040 or 1040-SR. Complete Idaho Form CG to compute your capital gains deduction. 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. Line 11 Active Duty Military Pay Earned Outside of Idaho If you’re serving in the United States military on active duty that’s continuous and uninterrupted for 120 days, Idaho doesn’t tax your active duty military wages for service outside of Idaho. The continuous 120 days don’t have to be in the same tax year. Enter your nontaxable military wages. Don’t include military wages earned while stationed in Idaho. Your W-2 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. Enter these wages on this line. Line 12 Adoption Expenses If you adopt a child, you can deduct some of the expenses incurred in the adoption. You can claim legal and medical expenses incurred up to a maximum of $10,000 per adoption. Travel expenses don’t qualify. If you incur expenses in two or more years, deduct the costs in the year paid until you meet the $10,000 limit. The expenses related to an unsuccessful attempt to adopt aren’t deductible. If you claim expenses in a year before such a determination, file an amended return to add back any deduction claimed for the unsuccessful attempt. Line 13 Idaho Medical Savings Account Contributions and Interest You can contribute up to $10,000 ($20,000 if married filing a joint return) 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 EIN00046 11-06-2023 Include interest earned on the account on line 13 but only if included on Form 40, line 7. Add your qualifying contributions to the interest earned on the account. Enter the name of the financial institution and your account number in the spaces provided. Line 14 Idaho College Savings Program You can deduct up to $6,000 ($12,000 if married filing a joint return) per year in contributions to accounts in the Idaho College Savings Program (IDeal). Contributions to an out-of-state qualified tuition program aren’t eligible for the deduction. Designate the account owner and beneficiary at the time you establish the account. The account owner can make withdrawals for a qualified eligible education expense for the beneficiary as provided in 26 U.S.C. section 529. The person who withdraws the funds must report the amounts withdrawn as income. More information is available at idsaves.org or by calling (866) 433-2533. Line 15 Home for the Aged You can deduct $1,000 for each family member, not including yourself or your spouse, who: • Is age 65 or older • You maintain a household for, and • You provide more than one-half of the family member’s support for the year Developmentally Disabled You can deduct $1,000 for each family member, including yourself and your spouse, who: • Is developmentally disabled • You maintain a household for, and • You provide more than one-half of the family member’s support for the year No more than three deductions of $1,000 are allowed. If you claim this deduction, you can’t claim the $100 credit in Part E. Developmental disability means a chronic disability that: • Is attributable to an impairment such as: Intellectual disability Cerebral palsy Page 33 of 52 Form 39R — Instructions Epilepsy Autism Other condition found to be closely related to or similar to, one of these impairments, and • Results in substantial functional limitation in three or more of the following areas of life activity: Self-care Receptive and expressive language Learning Mobility Self-direction Capacity for independent living Economic self-sufficiency, and • Reflects the need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and individually planned and coordinated. If you maintain the home for the family member for less than a full year, the deduction is allowed at the rate of $83.33 for each month the home was maintained. A family member is any person who meets the relationship test to be claimed as a dependent on income tax returns. Refer to the federal Form 1040 instructions for more information. Maintaining a household means paying more than one-half of the expenses incurred for the benefit of all the household’s occupants. Social Security benefits aren’t support provided by you but must be included in the computation of total support provided. Some examples of expenses of maintaining a household include: • Property taxes • Mortgage interest • Rent • Utility charges • Upkeep and repairs • Property insurance, and • Food consumed on the premises Line 16 Idaho Lottery Winnings You can deduct Idaho lottery prizes of less than $600 per prize included in federal adjusted gross income on Form 40, line 7. You can’t deduct lottery prizes from other states. EIN00046 11-06-2023 2023 (continued) Line 17 Income Earned on a Reservation by an American Indian You can deduct all your income from working on the reservation only when all these criteria are met: • You’re enrolled in a federally recognized tribe • You live and work on the reservation • The income is included on Form 40, line 7 of your tax return If you have no other income, you aren’t required to file. Income earned off the reservation can’t be deducted. Income earned on the reservation can’t be deducted if you live off the reservation. Line 18 Health Insurance Premiums 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 on your federal Form 1040 or 1040-SR, Schedule A, use the worksheet on page 35 to calculate the deduction allowed for health insurance premiums. The worksheet follows 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 amounts of 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. Page 34 of 52 Form 39R — Instructions 2023 (continued) If you voluntarily enroll in Medicare B or Medicare D or aren’t covered under Social Security and voluntarily enroll in Medicare A, you can deduct the premiums you paid. Worksheet The following worksheet shows how the federal limitation affects the amount of health insurance costs deductible for Idaho purposes. Idaho Standard Deduction If you use the Idaho standard deduction instead of itemizing your deductions for Idaho purposes, you don’t have to reduce your health insurance costs by any amount claimed as a federal itemized deduction. If you aren’t itemizing deductions for Idaho, skip lines 1-6 and enter zeros on lines 8, 12, and 13. Federal Itemized Deduction Limitations Reduce the amount of medical expenses allowed as a deduction on federal Form 1040 or 1040-SR, Schedule A, by 7.5% of adjusted gross income. Line 19 Long-term Care Insurance You can deduct the amount you paid in premiums for qualified long-term care insurance that isn’t otherwise deducted or accounted for. If you claimed a deduction for long-term care insurance on your federal Form 1040 or 1040-SR, Schedule A, use the following worksheet to calculate the long-term care insurance allowed as a deduction. Qualified long-term care insurance includes any insurance policy that provides coverage for at least 12 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 directly provide or supplement long-term care insurance qualify. This includes a policy that provides for payment of benefits based on cognitive impairment or loss of functional capacity. Qualified long-term care insurance doesn’t include any insurance policy that’s offered primarily to provide coverage for: • 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, or • Limited benefit health Life insurance policies that accelerate death benefits generally don’t qualify. EIN00046 11-06-2023 Health Insurance and Long-term Care Insurance Deduction Limitations 1. Amount claimed for health insurance costs on federal Form 1040 or 1040-SR, Schedule A ............................................. 2. Amount claimed for long-term care insurance on federal Form 1040 or 1040-SR, Schedule A ............................... 3. Additional medical expenses claimed on federal Form 1040 or 1040-SR, Schedule A .............................................. 4. Total medical expenses. Add lines 1, 2, and 3 ................................................... 5. Enter 7.5% of federal adjusted gross income .................................................... 6. Medical expense deduction allowed on federal Form 1040 or 1040-SR, Schedule A. (Subtract line 5 from line 4. 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 or 1040-SR, Schedule A. Enter the lesser of lines 1 or 6 ............................................... 9. Enter the total health insurance costs deducted elsewhere on the federal return .... 10. Idaho health insurance deduction allowed. Subtract lines 8 and 9 from line 7. 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. Subtract ine 1 from line 6. If less than zero, enter zero ....................................... 13. Portion of long-term care insurance deduction allowed on federal Form 1040 or 1040-SR, Schedule A. Enter the lesser of lines 2 or 12 ......................................... Page 35 of 52 Form 39R — Instructions 14. Enter the total long-term care insurance costs deducted elsewhere on the federal return ................................ 15. Long-term care insurance deduction allowed. Subtract lines 13 and 14 from line 11. Enter the amount on Form 39R, line 19 Line 20 Workers’ Compensation Insurance A self-employed individual can deduct the actual amount paid for workers’ compensation insurance coverage in Idaho, if the cost isn’t deducted elsewhere. Line 21 Bonus Depreciation If you claimed the bonus depreciation for federal purposes for property acquired before 2008 or after 2009: • Complete a separate federal Form 4562 or detailed computation for Idaho depreciation purposes as if the special depreciation allowance hadn’t been claimed • Compute the Idaho adjusted basis and any gains or losses from the sale or exchange of the property using the Idaho depreciation amounts • If the federal depreciation (including gains and losses) is less than the Idaho depreciation (including gains and losses), include the difference on this line; otherwise, enter the difference on Part A, line 5 Include on this line your distributive share of bonus depreciation from Form ID K-1, Part IV, Column B, line 27. Don’t enter any amounts for property acquired during 2008 and 2009. Line 22 First-time Home Buyer Savings Account You can contribute up to $15,000 ($30,000 if married filing a joint return) to a first-time home buyer savings account and deduct the contribution. Deposits into a first-time home buyer savings account can’t exceed $100,000 for the lifetime of the account. 2023 (continued) Include interest earned on the account on line 22 but only if included on Form 40, line 7. Interest earned on the account is tax deferred if the funds are used for a qualified home purchase. Enter the name of the financial institution and your account number in the spaces provided. Check the box to attest that you’re a first-time home buyer. A first-time home buyer means an individual who: • Resides in Idaho • Has filed an Idaho income tax return for the most recent tax year • Doesn’t own, either individually or jointly, a single-family or multi-family residence; and • Has never owned or purchased, either individually or jointly, a single-family residence in any location Line 23 Other Subtractions Identify any other subtraction you’re eligible for, and claim the amount on this line. Include: • Your distributive share of other subtractions from Form ID K-1, Part IV, Column B, line 28 • Charitable contributions not allowed on the federal return because of federal NOL limitations • Interest from Idaho Build America Bonds that was included in federal adjusted gross income, Form 40, line 7 • Amounts included in taxable income for funds received or loans forgiven according to Public Laws 116-136, 116-139, and 116-142 for COVID relief Don’t include: • Income earned in another state as a subtraction • Foreign taxes as a subtraction, since they’re claimed as part of the Idaho itemized deduction, if allowable • Any interest from non-Idaho Build America Bonds See the instructions for Itemized or Standard Deductions. A first-time home buyer savings account is established in Idaho with a bank, savings and loan association, credit union, or trust company authorized to act as a fiduciary. The account is established to pay the eligible home costs of the account holder or to reimburse the account holder’s eligible home costs in connection with a qualified home purchase. EIN00046 11-06-2023 Page 36 of 52 Form 39R — Instructions Part C — Credit for Income Tax Paid to Other States When Idaho and another state tax the same income, you may qualify for a credit for tax paid to the other state. Use this section to compute the credit. Include a complete copy of the other state’s income tax return and Idaho Form 39R with your income tax return. If your S corporation or partnership paid income tax to another state on your behalf, include a copy of Form ID K-1 or the schedule you received from the S corporation or partnership that paid the tax. If credit applies to more than one state, use a separate Form 39R for each state. Examples of income that both Idaho and another state may tax include: • Wages earned in another state that has an income tax, such as Oregon or Utah, while living in Idaho • Income from a business or profession earned in another state that has an income tax, while a resident of Idaho Line 1. Enter the tax shown on Form 40, line 20. Line 2. Enter the total portion of federal adjusted gross income derived in the other state, modified to reflect Idaho additions and subtractions. In computing the income derived in the other state, you must reverse any adjustments to federal taxable income allowed by the other state that aren’t applicable to Idaho. Enter your adjusted gross income from the other state restated to a basis comparable to Idaho adjusted income. For example, if the other state taxes interest received from U.S. obligations, deduct this amount from the other state’s adjusted gross income since Idaho doesn’t tax this interest. If your income derived in the other state includes income from an S corporation, partnership, trust, or estate, enter your share of the entity’s taxable income correctly reported to the other state plus any other Idaho adjusted gross income from sources in the other state. Line 3. Enter your Idaho adjusted income from Form 40, line 11, if you reported the double-taxed income on an individual income tax return in the other state. However, if the double-taxed income was reported to the other state and taxed as part of 2023 (continued) an S corporation or partnership composite or group return, enter your federal adjusted income from Form 40, line 7. Line 4. Divide line 2 by line 3. Round to four digits to the right of the decimal point. For example, .66666 is rounded to .6667 and is entered as 66.67%. The percentage can’t be more than 100%. Line 6. Enter the other state’s tax due from its tax table or rate schedule less its income tax credits. State and local tax (SALT) workaround payments or credits aren’t subtracted. If your income derived in the other state was reported on a composite or group return filed by an S corporation or partnership, enter your proportionate share of the tax paid by the S corporation or partnership minus your proportionate share of the income tax credits. Income tax credits are those credits that relate to income tax excluding SALT workaround payments or credits. An example of a credit that isn’t an income tax credit is a special fuels or gasoline tax credit or refund. Line 7. Your allowable credit for tax paid to other states is the smaller of lines 5 or 6. Enter this amount on Form 40, line 22. Part D — Credits for Idaho Educational Entity and Idaho Youth and Rehabilitation Facility Contributions, and Live Organ Donation Expenses Line 1 Credit for Idaho Educational Entity Contributions If you donated cash to a qualified educational entity, you can claim a tax credit. Donation of goods or services don’t qualify. Include amounts from Form ID K-1, Part VIII, line 50 to calculate the credit amount. The credit is limited to the smallest of: • One-half of the amount donated • 50% of the tax on Form 40, line 21 • $500 ($1,000 on a joint return) • The tax on Form 40, line 21 less the amount on Form 40, line 22 If you have credit from an ABE (Form ID K-1, Part XI, line 59), you can add that to the amount computed above (if any). The total credit is limited to the smallest of: • 50% of the tax on Form 40, line 21 or • $500 ($1,000 on a joint return). EIN00046 11-06-2023 Page 37 of 52 Form 39R — Instructions A qualified educational entity includes: • 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 • The 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 • The 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 • Idaho STEM Action Center • Medical residency programs or support organizations devoted to training residents in Idaho Line 2 Credit for Idaho Youth and Rehabilitation Facility Contributions You can claim this credit if you donated cash or goods to the following: • Qualified 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 Include amounts from Form ID K-1, Part VIII, line 51 to calculate the credit amount. The credit is limited to the smallest of: • One-half of the amount donated • 20% of the tax on Form 40, line 21 • $100 ($200 on a joint return) • The tax on Form 40, line 21 less the amounts on Form 40, line 22, Form 39R, Part D, line 1 and Form 44, Part I, line 1 EIN00046 11-06-2023 2023 (continued) If you have credit from an ABE (Form ID K-1, Part XI, line 61), you can add that to the amount computed above (if any). The total credit is limited to the smallest of: • 20% of the tax on Form 40, line 21 or • $100 ($200 on a joint return). The qualified youth or rehabilitation facilities and their foundations are: • 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 • 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 • Shepherd’s Home, Inc., McCall • Transitional Employment Services for the Handicapped, Coeur d’Alene • Walker Center, Gooding • Winchester Occupational Workshop, Winchester • Witco Inc., Caldwell • Women’s and Children’s Alliance 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 Page 38 of 52 Form 39R — Instructions Line 3 Credit for Live Organ Donation Expenses A living taxpayer who donates (or whose dependent donates) a qualified organ that’s transplanted into another individual can claim a credit for expenses related to the donation. The credit can’t be more than the taxpayer’s tax liability and is limited to the smaller of: • The amount of live organ donation expenses paid by the taxpayer during the tax year, or • $5,000 Any unused credit can be carried over for five years. To claim the credit, you must donate one or more of the following organs: • Human bone marrow • Any part of an: Intestine Kidney Liver Lung Pancreas 2023 (continued) If the home was maintained for the family member less than a full year, the credit is allowed at the rate of $8.33 for each month the home was maintained. You can claim this credit if your gross income is less than the filing requirement. File Form 40 and include Form 39R. Only residents, including Idaho residents on active military duty outside Idaho, can claim this credit. Lines 1 and 2. Answer the two questions. If you answer yes to either question, you qualify. Line 3. Enter the family member’s name, Social Security number, relationship, and date of birth for whom you maintain a home and provide more than one-half of their support. If the claim is for a family member with a developmental disability, check the box. Line 4. Enter the total on Form 40, line 44. Qualified expenses are those incurred by the taxpayer or dependent for travel, lodging, or lost wages and aren’t reimbursed to the taxpayer. The expenses must be directly related to the live organ donation by the taxpayer or a dependent of the taxpayer. Part E — Maintaining a Home for a Family Member Age 65 or Older or a Family Member with a Developmental Disability If you didn’t claim the $1,000 deduction on Part B, line 15, you can claim a $100 credit for each family member, not including yourself or your spouse who: • Is age 65 or older • You maintain a household for, and • You provide more than one-half of the family member’s support for the year EIN00046 11-06-2023 Page 39 of 52
Form 39R, Resident Supplemental Schedule and Instructions 2023
More about the Idaho FORM 39R Individual Income Tax TY 2023
We last updated the Idaho Supplemental Schedule (Resident) in January 2024, so this is the latest version of FORM 39R, fully updated for tax year 2023. You can download or print current or past-year PDFs of FORM 39R directly from TaxFormFinder. You can print other Idaho tax forms here.
Other Idaho Individual Income Tax Forms:
TaxFormFinder has an additional 65 Idaho income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| FORM 24 | Idaho Grocery Credit Refund |
| FORM 40 | Idaho Individual Income Tax Return |
| FORM ID-VP | Income Tax Payment Voucher |
| FORM 51 | Estimated Payment of Idaho Individual Income Tax |
| FORM 39R | Idaho Supplemental Schedule (Resident) |
View all 66 Idaho Income Tax Forms
Form Sources:
Idaho usually releases forms for the current tax year between January and April. We last updated Idaho FORM 39R from the State Tax Commission in January 2024.
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 FORM 39R
We have a total of twelve past-year versions of FORM 39R in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2023 FORM 39R
Form 39R, Resident Supplemental Schedule and Instructions 2023
2022 FORM 39R
Form 39R, Resident Supplemental Schedule and Instructions 2022
2021 FORM 39R
Form 39R, Resident Supplemental Schedule 2021 approved
2020 FORM 39R
Form 39R, Resident Supplemental Schedule 2020
2019 FORM 39R
Form 39R, Resident Supplemental Schedule 2019
2018 FORM 39R
Form 39NR, Supplemental Schedule for Form 43 2018
2017 FORM 39R
Form 39R - Idaho Supplemental Schedule for Form 40
2015 FORM 39R
FORM 39R
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