Idaho Idaho Income Tax Instruction Booklet

Idaho Income Tax Instruction Booklet
Individual Income Tax Instructions Packet 2023
Individual Income Tax
General Information

2023

Check Your Withholding!
•	 Recent tax laws have changed the calculation for income taxes withheld
from your paycheck. Make sure you’re not withholding too little or too much.
•	 Check your withholding today at tax.idaho.gov/w4

Where’s My Refund?
Track Your Refund Progress 24/7

Visit tax.idaho.gov/refund to get the most up-to-date information
about your income tax refund. Our online service is the easiest and
fastest way to track your refund.

Typical Refund Timeframes

•	 E-filed? Expect your refund about seven to eight weeks after
you receive an acknowledgment that we have your tax return.
•	 Filed on paper? Expect your refund about 10 to 11 weeks after we receive your
return. We must manually enter information from paper returns into our database.

Refund Exceptions

•	 First time you filed an Idaho income tax return? It takes about three weeks to enter your
account into our system. Until that time, we’ll report your return as “not entered in system.”
Add those three weeks to the estimates above to determine your refund timeframe.
•	 Received a letter from us asking for more information? Your refund will be delayed until
we get the requested information. It then will take about six weeks to finish the process.

Rapid Response = Faster Refund

All income tax returns go through fraud detection reviews and accuracy checks before we
issue any refunds. After you file your return, the Tax Commission might send you letters
asking you to:
•	 Verify your identity
•	 Verify that you filed a return
•	 Provide more information

Pay Online Quickly and Easily
Use our fast and easy Quick Pay option to make online payments at tax.idaho.gov/quickpay.

Get Idaho Forms
•	 Get forms online at tax.idaho.gov/IITforms.
•	 Pick them up at one of our offices. Find locations at tax.idaho.gov/visit.
•	 Call us at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.
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General Information
What’s New for 2023

2023

return. The tax year and accounting method used on
your Idaho return must match those used on your
federal return.

Conformity to Internal Revenue Code (IRC)
Idaho conforms to the IRC as of January 1, 2023.
Idaho doesn’t conform to bonus depreciation for
assets acquired after 2009.
Tax Rate Reduction
Effective January 1, 2023, the individual income tax
rate is 5.8%.
Grocery Credit Increased
The grocery tax credit for eligible Idaho residents
increased from $100 to $120 starting in tax year
2023. The credit for Idahoans who are 65 and older
increased from $120 to $140.
Dependent Care Tax Deduction Increased
The maximum individual tax deduction for
dependent care is now $12,000 per year.

Who Must File
•	 Every Idaho resident who must file a federal
income tax return
•	 Every part-year resident with a total of more than
$2,500 gross income from:
‚	 All sources while a resident, and
‚	 Idaho sources while a nonresident
•	 Every nonresident with more than $2,500 gross
income from Idaho sources
To file an Idaho return, first complete your federal
return. You need the federal return information to
complete your Idaho return.
Your Idaho filing status must be the same as
your federal filing status. For example, if you file a
joint federal return you also must file a joint Idaho

If a taxpayer dies before filing a current year return,
the taxpayer’s spouse or personal representative must
file the return. A personal representative can be an
executor, administrator, or anyone who’s in charge of
the deceased taxpayer’s property.
Gross income means all income you received in
the form of money, property, goods, and services
that aren’t exempt from tax. It’s measured before
subtracting allowable deductions. Gross income
includes, but isn’t limited to:
•	 Income from wages, salaries, tips, interest, and
dividends that isn’t exempt from tax
•	 Self-employment income before expenses
•	 Farm income before expenses
•	 Rental income before expenses
•	 The shareholders’ or partners’ share of gross
income from S corporations and partnerships
•	 Unemployment compensation
•	 Certain scholarship and fellowship grants
•	 Gains from sales of property
•	 Pensions and annuities
•	 Taxable Social Security benefits
Scholarships used for tuition, fees, supplies, books,
and equipment required for courses leading to a
degree aren’t included in gross income.
Unearned income includes:
•	 Taxable interest
•	 Ordinary dividends

Idaho Resident Filing Requirements

If your filing status is:

And you are:

And your gross income is:

Married filing jointly

Under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)

$27,700
$29,200
$30,700

Head of household

Under 65
65 or older

$20,800
$22,650

Single

Under 65
65 or older

$13,850
$15,700

Qualifying surviving spouse with
dependent child

Under 65
65 or older

$27,700
$29,200

Married filing separately

Any age

$5

If you’re a resident and are filing a federal income tax return only to pay self-employment tax and
aren’t otherwise required to file a federal income tax return, you aren’t required to file an Idaho
income tax return.
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General Information

2023

(continued)

If your parent or someone else can claim you as a dependent, use the following information to see if you must file
a return.

You must file a return if any of the following apply:
Unearned
income

Single
Dependents

Over $1,250

More than the larger of $1,250 or your earned
Over $13,850 income plus $400

Over 65 or blind

Over $3,100

Over $15,700

More than the larger of $3,100 or your earned
income plus $2,250

Over 65 and blind

Over $4,950

Over $17,550

More than the larger of $4,950 or your earned
income plus $4,100

Over 65 or blind

Over 65 and blind

Over $1,250

Over $2,750

Over $4,250

•	 Capital gains distributions
•	 Unemployment compensation
•	 Taxable Social Security benefits, pensions,
and annuities
•	 Distributions of unearned income from a trust
Earned income includes:
•	 Salaries
•	 Wages
•	 Tips
•	 Professional fees
•	 Taxable scholarships and fellowship grants
Gross income is the total of your unearned and
earned income.

Which Form to Use
Use Form 40 if you’re a:
•	 Resident, or
•	 Resident in the military
Use Form 39R if you file Form 40 and claim any
additions, subtractions, or certain credits.
Use Form 43 if you’re a:
•	 Part-year resident
•	 Nonresident, or
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Gross income

Under 65 and not blind

Under 65 and not blind

Married
Dependents

Earned
income

11-06-2023 

Over $13,850

Over $15,350

Over $16,850

At least $5 and your spouse files a separate
return and itemizes
More than the larger of $1,250 or your earned
income plus $400
At least $5 and your spouse files a separate
return and itemizes
More than the larger of $2,750 or your earned
income plus $1,900
At least $5 and your spouse files a separate
return and itemizes
More than the larger of $4,250 or your earned
income plus $3,400

•	 Nonresident alien for federal purposes and are
required to file an Idaho income tax return
Use Form 39NR if you file Form 43 and claim any
additions, subtractions, or certain credits.

When to File and Pay
File your return and pay any tax due:
•	 By April 15, 2024, for the 2023 calendar year, or
•	 By the 15th day of the fourth month following the
close of the fiscal year if you file on a fiscal year
basis
Idaho doesn’t require estimated tax payments.
You can prepay at any time at tax.idaho.gov/epay or
by mailing your payment with Form 51.

Where to File
Mail the return and payment to:
Idaho State Tax Commission
PO Box 83784
Boise ID 83707-3784
If you’re mailing a payment without a return, send
your payment with Form ID-VP to:
Idaho State Tax Commission
PO Box 83784
Boise ID 83707-3784
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General Information
If you’re mailing a return only, send to:
Idaho State Tax Commission
PO Box 56
Boise ID 83756-0056
If you’re sending your return using a delivery service
that requires a physical address, use the following:
Idaho State Tax Commission
11321 W Chinden Blvd Bldg 2
Boise ID 83714

What to Include and What to Keep
Include
Include all schedules and other forms in the
following order:
1.	 Form 40 or 43
2.	 Form 39R or 39NR
3.	 Form 75
4.	 Form 44
5.	 Additional schedules in numerical order
6.	 Additional forms in alphabetical order
7.	 Form ID K-1
8.	 W-2s and/or 1099s placed on top of Form 40 or 43
9.	 Complete copy of federal return
Include legible copies of Form W-2s, 1099s, and
other information forms that show Idaho withholding
with your return. If you’re claiming credit for taxes
paid to another state, you must include Idaho
Form 39R or 39NR and a copy of the other state’s
income tax return. If the credit applies to more than
one state, use a separate Form 39R or 39NR for
each state.
Keep
Keep copies of any receipts, tax forms, worksheets,
and other records to support any income, deduction,
exemption, and credit you’ve reported.

Rounding
Round the amounts on your return to the nearest
whole dollar. Round down if under 50 cents, round
up if 50 cents or more.

Extension of Time to File
This isn’t an extension of time to pay your
taxes—it’s an extension to file your return.
You automatically get an extension of up to six
months to file your return if you’ve paid at least:
•	 100% of what you paid for state income taxes
the year before, or
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•	 80% of your current year’s tax liability
You can avoid a penalty for late filing, but will be
charged interest on the remaining tax until it’s paid.
Complete the worksheet on Form 51 to see if you
meet the extension requirements.
To avoid a penalty, pay online at
tax.idaho.gov/epay or mail your payment with
Form 51 by April 15, 2024.
If you qualify for an extension to file your
Idaho return, send the return and pay in full by
October 15, 2024.

Penalties
Idaho law provides penalties for not filing tax returns
by the due date, not paying tax due on time, and not
prepaying enough on extension returns. For more
information or to calculate a penalty, see our Penalties
and Interest page at tax.idaho.gov/penalties.

Interest
We charge interest on the amount of tax due from the
original due date of the return until paid at the rate of
6% per year (rate effective for 2024).

Residency
Are you a resident, a part-year resident, or a
nonresident?
The following will help you decide:
•	 You’re an Idaho resident, even though you live
outside of Idaho if all of the following are true:
‚	 You think of Idaho as your permanent home
‚	 Idaho is the center of your financial, social,
and family life
‚	 Idaho is the place you intend to return to
when you’re away
•	 You’re also an Idaho resident if the following are
true:
•	 You maintain a home in Idaho the entire
year, and
‚	 You spend more than 270 days in Idaho
during the tax year
•	 You’re a part-year resident if you moved into or
out of Idaho during the tax year. You’re still a
resident if:
‚	 You temporarily moved outside of Idaho, or
‚	 You moved back to Idaho after a
temporary absence

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General Information
•	 You’re a nonresident if your permanent home is
outside of Idaho all year.
•	 You’re considered a nonresident if all of the
following are true:
‚	 You’re an Idaho resident who lived
outside of Idaho for at least 445 days in a
15-month period
‚	 After satisfying the 15-month period, you
spent less than 60 days in Idaho during
the year
‚	 You didn’t have a personal residence in
Idaho for yourself or your family during any
part of 2023
‚	 You didn’t claim Idaho as your federal
tax home
‚	 You weren’t employed on the staff of a U.S.
senator or representative
‚	 You didn’t hold an elective or appointive
office of the U.S. government other than
the armed forces or a career appointment
in the U.S. Foreign Service
Note: The above exception to being an Idaho
resident doesn’t apply to a qualified servicemember.
Community Property
Idaho is a community property state. Idaho’s
community property laws generally treat property
and income acquired during marriage differently
than other property. For more information visit
tax.idaho.gov/commprop.

Military Personnel
Idaho law generally follows federal law regarding
which type of military pay (active duty, disability,
reserve, or retirement) is taxable.
Qualified Servicemember
A qualified servicemember is:
•	 Any member of the U.S. military
•	 A member of the National Guard called to
active duty service by the President of the
United States or the U.S. Secretary of Defense
for more than 30 consecutive days to respond
to a national emergency declared by the
President and supported by federal funds
•	 A member of the commissioned corps of
the National Oceanic and Atmospheric
Administration in active service
•	 A member of the commissioned corps of the
Public Health Service in active service
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Military Home of Record
The qualified servicemember’s residence is
considered to be the same as the servicemember’s
home of record.
Federal Military Spouses Residency Relief Act
The earned income of qualifying spouses of Idaho
servicemembers isn’t subject to Idaho income tax
because of the federal Military Spouses Residency
Relief Act.
As a servicemember’s spouse, you qualify for this
exemption if:
•	 You’re married to a servicemember who’s
serving in Idaho and the servicemember
registered their home of record in another state,
and
•	 You’ve moved to Idaho with the servicemember
and have the same domicile (permanent
residence) as the servicemember’s home of
record
If you qualified for the Idaho income tax military
spouse exemption, report any Idaho withholding on
Form 43, line 66.
Idaho Residents on Active Duty — Stationed in Idaho
If Idaho is your military home of record and you’re on
active duty stationed in Idaho, Idaho taxes all of your
military wages and all nonmilitary income regardless of
the source. File Form 40.
Idaho Residents on Active Duty — Stationed
Outside of Idaho
Report all your Idaho income to Idaho if you meet all
the following criteria:
•	 You joined the military as an Idaho resident
•	 Idaho is your military home of record
•	 You were on active duty for 120 or more
consecutive days
•	 You were stationed outside of Idaho for all or part
of the year
File Form 40 if you’re single or if you’re married and
your spouse also is an Idaho resident.
File Form 43 if you’re married and your spouse is
an Idaho nonresident, part-year resident, or military
nonresident.
•	 Check the “Idaho Resident on Active Military
Duty” residency status box for yourself
•	 Check the applicable residency status box for
your spouse

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General Information
Idaho residents in the military don’t lose Idaho
residency or domicile by being absent because of
military orders.
A qualified servicemember isn’t a resident of, or
domiciled in, Idaho just by being stationed in Idaho.
Nonresidents on Active Duty Stationed in Idaho
Idaho doesn’t tax your military income if your military
home of record isn’t Idaho and you’re on active duty
stationed in Idaho for all or part of the year.
Idaho taxes nonmilitary income from Idaho sources.
File Form 43 if your gross income from Idaho
sources is more than $2,500. The instructions for
Form 43 begin on page 15.
National Guard Members Called to Active Duty
in a Combat Zone
Idaho follows federal law and provides income tax
relief for servicemembers on active duty in combat
zones. Below is a summary of how these laws affect
Idaho National Guard members:
•	 All tax filing deadlines are extended for at least
180 days after your last day in a combat zone
•	 No interest or penalty accrues for nonpayment
of individual income taxes while you’re in a
combat zone
•	 If you’re enlisted or a warrant officer, you don’t
owe tax on military pay received while in a
combat zone. If you’re a commissioned officer,
the monthly exclusion is capped at the highest
enlisted pay plus any hostile fire or imminent
danger pay received
•	 Federal law doesn’t cover business tax returns,
employment taxes, or sales/use tax obligations
•	 Write “COMBAT ZONE” and the date of
deployment on top of the tax return you’re filing

2023

(continued)

Amended Returns
Use Form 40 or 43 to amend your return. Check the
amended return box at the top of the form and enter
the reason for amending.
See Amended Return on page 7 or 15 for more
information.
If your taxable income or tax credits change because
of an audit, you must send written notice including
an amended return to the Tax Commission within
120 days of the final determination. Include copies of
all federal and/or state schedules.
If you owe additional Idaho tax and don’t send
written notice within 120 days of the final federal
determination, we apply a 5% negligence penalty.
We charge interest on any tax due.
If the final determination results in an Idaho refund,
you must file an amended Idaho income tax return
with the written notice. If the statute of limitations is
closed, you have one year from the date of the final
determination to file for the refund.

Deadlines to Claim a Refund
To qualify for a refund, you must file a return within:
•	 Three years from the original return filing date, or
•	 Three years from the original return due date
(not including extensions)
For amended returns, you must file a claim for refund
within:
•	 Three years from the original return filing date, or
•	 One year from the time the federal audit was
closed (if the amended return is because of a
federal audit)

American Indians
You can deduct all your income from working on the
reservation only when you meet all these criteria:
•	 You’re enrolled in a federally recognized tribe
•	 You live and work on the reservation
•	 The income is included on the tax return
If you have no other income, you aren’t required to file.
If you have other income in an amount that meets
the federal filing requirement, you must file an
Idaho return. For specific instructions see Form
39R or 39NR.

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Form 40 — Instructions
Individual Income Tax Return

2023

Instructions are for lines not fully explained on the
form. General information instructions beginning on
page 2 also apply to this form.

Amended Return
You can use this form as an original return or an
amended return.

Grocery Credit Refund Only
If you’re not required to file an income tax return but
are filing Form 40 to receive a grocery credit refund,
you don’t need to include a copy of a federal return.
If you or your spouse are over age 65, see Form 24.

If you’re filing this form as an amended return, check
the box at the top of the form. Enter the number from
the following list that best describes your reason for
amending:
1.	 Federal Audit
2.	 Net Operating Loss Carryback – Include Form 56
or a schedule showing the application of the loss
3.	 Federal Amended – Include a complete copy of
your amended federal return
4.	 Other – Include an explanation

You must complete Form 40 as follows:
•	 Complete the top of the form through line 6
•	 Write “NRF” (Not Required to File) on line 7
•	 Skip lines 8 through 11
•	 Complete line 12a if you (or your spouse) are
age 65 or older
•	 Skip lines 12b through 31
•	 Cross through the $10 on line 32, Permanent
Building Fund, and write “NRF”
•	 Skip lines 33 through 42
•	 Enter your grocery credit amount on line 43
using the grocery credit worksheet on page 11
•	 Complete applicable lines 44 through 57
•	 Skip lines 58 through 61
•	 Complete the bottom of Form 40 below line 61
Heading
Write your name, address, and Social Security
number (SSN) in the spaces provided. If you don’t
have an SSN, write your Individual Tax Identification
Number (ITIN).
If you don’t have or aren’t required to have an
SSN or ITIN, enter “NRA” (Nonresident Alien) in
the SSN space. If you’ve applied for an ITIN and
haven’t received it from the Internal Revenue
Service (IRS) before you file your Idaho return,
enter “Form W-7” in the space provided for the
SSN. If you enter “Form W-7,” include a copy of
your federal Form W-7 with your return. Once you
receive your ITIN from the IRS, you must provide
it to the Tax Commission before your return can
finish processing.
If you receive an SSN after using an ITIN, you must
use the SSN and stop using your ITIN. It’s your
responsibility to notify the Tax Commission so your
return can finish processing.
Be sure that your return and W-2 forms show the
correct SSN or ITIN. An error in your SSN or ITIN
will delay your refund.
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Complete the entire form and schedules using the
corrected amounts. Don’t include a copy of your
original return with the amended return.
Lines 1 through 5 Filing Status
Check the box indicating your Idaho filing status.
Refer to General lnformation on page 2 for more
information on filing status.
Line 6 Household
Line 6a. Yourself. Enter “1” unless someone else
claims you as a dependent on their return.
Line 6b. Spouse. Enter “1” if you’re filing a joint return.
Enter “1” if your spouse died during 2023 and you’re
filing a joint return.
Leave the line blank if someone else claims your
spouse as a dependent on their return.
Line 6c. Dependents. List your dependents. Include
their SSN and birthdate. If you have more than four
dependents, continue on Form 39R, Part F. Enter the
total number of dependents on the line.
If you’re the noncustodial parent of a dependent and
are claiming them on your return, include federal
Form 8332 or a copy of the court order with your
return. See irs.gov/pub/irs-pdf/f8332.pdf for more
information.
Line 6d. Total. Add lines 6a through 6c.
Line 7 Federal Adjusted Gross Income
Enter your federal adjusted gross income from
Form 1040 or 1040-SR, line 11.
Line 11 Total Adjusted Income
If your total adjusted income is negative, see
Form 56 and instructions.
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Form 40 — Instructions
Tax Computation
Line 12a Age 65 or Older
If you’re 65 or older, check the box for “Yourself.”
If you’re filing a joint return and your spouse is 65
or older, check the box for “Spouse.” If your 65th
birthday was on January 1, 2024, you may consider
yourself 65 on December 31, 2023. The boxes you
check must match your federal return.
Line 12b Blind
Check the box for “Yourself” if you’re blind. If you’re
filing a joint return and your spouse is blind, check
the box for “Spouse.” The boxes you check must
match your federal return.
Line 12c Claimed Dependent
Check this box if someone else, such as a parent,
can claim you as a dependent.
Lines 13 – 16
Standard Deduction
Most people can find their standard deduction by
looking at the instructions to the left of Form 40,
line 16. Use the Standard Deduction Worksheet
beginning on this page to calculate your standard
deduction if:
•	 You check any boxes on lines 12a through 12c,
or
•	 Someone can claim you or your spouse, if
filing jointly, as a dependent
You can use either your federal itemized deductions
or standard deduction, whichever benefits you
more.
You Must Itemize If:
•	 You’re married, filing a separate return (filing
status 3), and your spouse itemizes
•	 You had dual status as a nonresident alien for
part of 2023 and during the rest of the year, you
were a resident alien or a U.S. citizen
You don’t have to itemize if you file a joint return
with your spouse who was a U.S. citizen or resident
at the end of 2023, and you and your spouse agree
to be taxed on your combined worldwide income.
Idaho requires that state or local income or general
sales taxes shown on federal Schedule A be
subtracted from your total itemized amount before
you use this figure to reduce your income. Because
of this addback, it may be more beneficial to itemize
for federal purposes but use the standard deduction
for Idaho.
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If the IRS considers you or your spouse a nonresident
alien and you aren’t from India, your standard
deduction is zero. If you’re nonresident aliens from
India, use the standard deduction indicated for your
filing status.
If line 15 is more than line 16, use your itemized
deductions on line 15. If line 16 is more than line 15,
use your standard deduction on line 16.
Itemized Deductions
If you use federal Schedule A to itemize, use the
following instructions for line 14:
•	 If federal Schedule A, line 5d, is:
‚	 $10,000 or less ($5,000 if married filing
separately), enter the amount from federal
Schedule A, line 5a.
‚	 More than $10,000 ($5,000 if married
filing separately), subtract lines 5b and 5c
from line 5e, and enter the amount here.
Enter zero for any result less than zero.
Federal Foreign Tax Credit: If you claim the federal
foreign tax credit, Idaho allows that amount as a
deduction. Idaho doesn’t have a credit that matches
the federal foreign tax credit.
Add the amount you claimed for the federal foreign tax
credit to your Idaho itemized deductions.

Standard Deduction Worksheet
1. Enter the amount shown below for your
filing status:
•	 Single or married filing separately,
enter $13,850
•	 Married filing jointly or qualifying
surviving spouse, enter $27,700
•	 Head of household, enter $20,800 ......
2. Can you be claimed as a dependent?
No. Enter the amount from line 1 on line 4.
Skip line 3.
Yes. Go to line 3.
3. Is your earned income* more than $850?
Yes. Add $400 to your earned income.
Enter the total.
No. Enter $1,250 ..............................
4. If you can be claimed as a dependent,
enter the smaller of lines 1 or 3. If born
after January 1, 1959, and not blind, skip
to line 6. Otherwise, go to line 5 ...............

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Form 40 — Instructions
5. If born before January 2, 1959, or blind,
multiply the total number of boxes
checked on Form 40, lines 12a and 12b,
by $1,500 ($1,850 if single or head of
household) .............................................
6. Add lines 4 and 5. Enter the total here
and on Form 40, line 16 ..........................

*Earned income includes wages, salaries, tips,
professional fees, and other compensation received
for personal services you performed. It also
includes any amount received as a scholarship
that you must include in your income. See Gross
Income in General Information.
Line 18 Qualified Business Income Deduction
Enter the amount from federal Form 1040 or
1040-SR, line 13.
Line 20 Tax
Enter the tax on this line.
Worksheet
1. Enter the amount of Idaho taxable
income from Form 40, line 19..................
2. Enter the amount shown below for your
filing status:
•	 Single or married filing separately,
enter $4,489
•	 Married filing jointly, head of household,
or qualifying surviving spouse,
enter $8,978
3. Subtract line 2 from line 1. Enter the
subtotal .........................................................
4. Multiply subtotal by 5.8% .............................
5. Idaho tax. Enter the total here and on
Form 40, line 20 ...........................................

If you don’t meet the filing requirement
(see page 2) and are filing only to receive a refund of
withheld taxes, write “NRF” (Not Required to File) on
this line.

Credits
Line 22 Income Tax Paid to Other States
When both Idaho and another state tax the same
income, you may qualify for a credit for tax paid
to the other state. Use Form 39R to compute the
credit. You must include a copy of the other state’s
income tax return and Form 39R. If the credit
applies to more than one state, use a separate
Form 39R for each state. See instructions, page 37.
You may qualify for a credit for tax paid to another
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state by a pass-through entity. If a pass-through
entity paid tax to another state on your behalf, it
should report that information to you.
Examples of income that may be taxed by both
Idaho and another state include:
•	 Wages earned in another state that has an
income tax, such as Oregon or Utah, while
you’re living in Idaho
•	 Income from a business or profession earned
in another state that has an income tax while
you’re a resident of Idaho
Line 23 Total Credits for Charitable Contributions
and Live Organ Donations
You may qualify for a credit if you donated a qualified
organ that’s transplanted into another individual, or if
you made a contribution to a:
•	 Qualified Idaho educational entity
•	 Center for independent living
•	 Youth or rehabilitation facility or its foundation, or
•	 Nonprofit substance abuse center licensed by
the Idaho Department of Health and Welfare
Complete Form 39R, Part D and see page 37 for
specific instructions. Enter the total allowed credit from
Form 39R, Part D, line 4, and include Form 39R with
your return.
Line 25 Idaho Child Tax Credit Worksheet
To qualify for the Idaho Child Tax Credit, the child
must:
•	 Be your qualifying child, and
•	 Be age 16 or under as of December 31, 2023
If you don’t have a qualifying child, you can’t claim
the credit.
For divorced parents or parents who don’t live
together, the custodial parent claims the qualifying
child.
The noncustodial parent may claim the child if:
•	 A court has awarded the right to claim the child
for tax purposes to the noncustodial parent, or
•	 The custodial parent signs a written declaration
that the noncustodial parent can claim the child
for the child tax credit
The noncustodial parent must include a copy of the
court order or the written declaration with their income
tax return.
Note: This credit is limited to your tax liability after
any credit for tax paid to other states and credits from
Forms 39R and 44.
Page 9 of 52

Form 40 — Instructions
Worksheet
1. Enter the number of your qualifying
children* .................................................
2. Multiply line 1 by $205 ...........................
3. Enter the amount from Form 40, line 20 ....
4. Enter the amount from Form 40, line 22 ....
5. Enter the amount from Form 40, line 23 ....
6. Enter the amount from Form 40, line 24 ....
7. Subtract lines 4 through 6 from line 3. If
less than zero, enter zero .......................
8. Enter the lesser of lines 2 or 7 here
and on Form 40, line 25 .........................

*See federal Form 1040 instructions for more
information on qualifying children.

Other Taxes
Line 28 Fuels Tax Due
If you buy gasoline, aircraft fuel, or special fuels
(diesel, propane, or natural gas) without paying the
fuels tax and later use this fuel in licensed vehicles
or aircraft, you owe fuels tax. Add the amounts on
Form 75, Section IV, lines 3 and 4, and enter the
total. Include Form 75.
Line 29 Sales/Use Tax Due
If you made purchases during the year without
paying sales tax, you must pay use tax on these
purchases. If you purchased an item from an
out-of-state seller (including internet, catalog, radio,
and TV purchases) and the seller didn’t collect
sales tax on that purchase, you must pay the use
tax directly to the Tax Commission. Multiply the total
amount of purchases by 6% (.06). If you computed
use tax on Form 75, add it to the use tax on other
purchases and enter the total on this line.
If you have an Idaho sales or use tax account,
don’t report your sales or use tax on this line, but
continue to report the tax on these purchases on
your sales and use tax returns.
Line 30 Total Tax from Recapture of Income Tax
Credits
If you’ve claimed Idaho tax credits that no longer
qualify, you must compute the tax credit recapture.
Enter the total tax from recapture of income
tax credits from Form 44, Part II, line 6. Include
Form 44.

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(continued)

Line 31 Tax from Recapture of Qualified
Investment Exemption (QIE)
If you’ve claimed Idaho exemption of property taxes
from property that no longer qualifies, you must
compute the recapture of the QIE. Include Form 49ER.
Line 32 Permanent Building Fund (PBF) Tax
You’re required to pay the $10 PBF tax if you’re
required to file an Idaho income tax return. See Who
Must File on page 2.
You aren’t required to pay the $10 PBF tax if:
•	 Your gross income was less than the amount
specified for your filing status. Draw a line through
the $10 and enter “NRF” (Not Required to File)
•	 You were receiving Idaho public assistance
payments at the end of the tax year. Check the
box on this line and draw a line through the $10.
Food stamps and WIC payments don’t qualify as
Idaho public assistance
•	 You (or your spouse) are legally blind at the end
of the tax year. Draw a line through the $10

Donations
The donations on lines 34 through 41 are voluntary
and will either reduce your refund or increase your tax
due. Once you make the donation, it can’t be changed.
These donations may be itemized as charitable
contribution deductions on your 2024 income tax
return. If you have questions about your donations,
contact the agencies listed.
If you’re filing an amended return, your donations can’t
be less than the amounts on the original return.
If you make a donation and owe tax, you must pay the
tax at the time of filing.
Line 34 Idaho Nongame Wildlife Fund
Contributions are used to ensure the conservation and
management of nongame wildlife, rare plants, and
their habitats in Idaho, to promote greater awareness
of and appreciation for species that aren’t hunted,
fished, or trapped, and to increase opportunities
to view and enjoy “watchable” wildlife. For more
information visit the Department of Fish and Game
website at idfg.idaho.gov/wildlife/funding or call
(208) 334-2920.
Line 35 Idaho Children’s Trust Fund/Prevent Child
Abuse Idaho
Contributions are used to protect our children,
Idaho’s single greatest resource. The Children’s Trust
supports work in communities throughout Idaho to
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Form 40 — Instructions
prevent child abuse and neglect before it ever occurs.
For more information visit the Idaho Children’s
Trust Fund/Prevent Child Abuse Idaho website at
idahochildrenstrustfund.org or call (208) 386-9317.
Line 36 Special Olympics Idaho
Contributions provide support for year-round sports
training and competition for children and adults
with developmental disabilities in Idaho. For more
information visit the Special Olympics Idaho website
at specialolympicsidaho.org or call (208) 323-0482.
Line 37 Idaho Guard and Reserve Family
Support Fund
Contributions are used to assist military reservists
and their families to promote the overall readiness
for them to support our state and federal missions.
For more information visit the Idaho Guard and
Reserve Family Support Fund, Inc. website
at imd.idaho.gov/igr-family-support or call
(208) 801-4225.
Line 38 American Red Cross of Idaho Fund
Contributions prevent and alleviate human
suffering in the face of emergencies. For more
information visit the American Red Cross
website at redcross.org/local/idaho or call
(800) 733-2767.
Line 39 Veterans Support Fund
Contributions fund programs that support Idaho
veterans. For more information visit the Idaho
Division of Veterans Services website at veterans.
idaho.gov/publications/idaho-veterans-supportfund or call (208) 780-1300.
Line 40 Idaho Food Bank Fund
Contributions assist Idaho hunger relief
organizations in meeting the demand for emergency
food for hungry Idaho families, children, and senior
citizens. For more information visit the Idaho Food
Bank Fund website at idahofoodbankfund.org or
call (208) 336-9643.
Line 41 Opportunity Scholarship Program
Contributions help provide need-based scholarship
funds to Idaho high school graduates who attend
approved higher education institutions within Idaho.
For more information visit the Idaho Opportunity
Scholarship Program website at boardofed.idaho.
gov/scholarships/Idaho-opportunity-scholarship.

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2023

(continued)

Payments and Other Credits
Line 43 Grocery Credit
If you’re an Idaho resident, you can claim a credit for
each qualifying dependent who’s an Idaho resident. If
someone else, such as a parent, can claim you as a
dependent, you can’t claim this credit on your return.
The credit is $120 each for you, your spouse, and your
dependents. You can claim an additional $20 if you’re
age 65 or older on December 31, 2023, and are an
Idaho resident. You can claim an additional $20 if your
spouse is age 65 or older and is an Idaho resident.
An individual doesn’t qualify for the credit for any
month or part of a month for which that person:
•	 Received assistance from the federal food
stamp program
•	 Was incarcerated, or
•	 Lived illegally in the United States
Members of the Armed Forces
A member of the United States Armed Forces
who’s domiciled in Idaho is allowed the credit. If
you live in Idaho but are a nonresident under the
Servicemembers Civil Relief Act, you aren’t allowed
the grocery credit.
A spouse or dependent of a nonresident military
person stationed in Idaho may be an Idaho resident
or part-year resident. The domicile of a dependent
child is the same as that of the nonmilitary spouse.
Complete the worksheet and enter the total computed
grocery credit on line 43. See the following instructions
to donate your credit. If you aren’t donating your credit,
enter the computed amount in the column for line 43.

Grocery Credit Worksheet
Yourself:
1. Number of qualified months .......................
2. If 65 or older, multiply line 1 by $11.67
If qualified for the entire year, enter $140 ......
If under 65, multiply line 1 by $10.
If qualified for the entire year, enter $120 ......
Spouse (if joint return):
3. Number of qualified months .......................
4. If 65 or older, multiply line 3 by $11.67
If qualified for the entire year, enter $140 ......
If under 65, multiply line 3 by $10
If qualified for the entire year, enter $120 ......

Page 11 of 52

Form 40 — Instructions
Resident dependents claimed on line 6:
5. Enter $120 for each dependent who qualifies for
the entire year. If a dependent qualifies for only
part of the year, compute as follows:
 Number of qualified months ____ x $10
Number of qualified months ____ x $10
Number of qualified months ____ x $10
Number of qualified months ____ x $10
If you have more than four dependents, use additional
paper to compute.
Total credit allowed:
6. Add amounts on lines 2, 4, and 5. Enter
total on line 43 ............................................

Donating Your Grocery Credit
You can donate your entire grocery credit to the
Cooperative Welfare Fund. To donate, check the
box on line 43 and enter zero (0) in the column for
line 43. Once you make the donation, it can’t be
changed on an amended return.
Note: If you (or your spouse) are age 65 or older
and qualify for the credit but aren’t required to file
an Idaho income tax return, you can claim the credit
on Form 24. You can get this form from any Tax
Commission office or our website at tax.idaho.gov/
IITforms. Form 24 is due by April 15, 2024.
Line 44 Maintaining a Home for a Family Member
Age 65 or Older or a Family Member with a
Developmental Disability
You can claim a tax credit of $100 per person (up
to $300) if you maintained a household for an
immediate family member:
•	 Age 65 or older (not including yourself or your
spouse), or
•	 With a developmental disability (including
yourself and your spouse), and
•	 Didn’t claim a deduction of $1,000 per person
on Form 39R, Part B, line 15
You can claim this credit even if your gross income
is less than the filing requirement.
Line 45 Fuels Tax Refund
If you buy special fuels (diesel, propane, or natural
gas) with Idaho tax included and use this fuel for
heating or in off-highway equipment, you may be
eligible for a refund of the Idaho special fuels tax
you paid. Enter the amount from Form 75, Section
IV, line 2. Include Form 75. Heating fuel generally is
purchased without paying the tax.
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(continued)

If you buy gasoline and use it in unlicensed equipment
or auxiliary engines, you may be eligible for a refund
of the Idaho gasoline tax you paid. Enter the amount
from Form 75, Section IV, line 1. Include Form 75.
Line 46 Idaho Income Tax Withheld
Enter the total amount of Idaho income tax withheld.
Include legible state copies of Form W-2s, 1099s, and
other information forms that show Idaho withholding.
Don’t claim credit for tax withheld for other states or
federal tax withheld.
Don’t include Form W-2s from other tax years or write
on or change the amounts on your Form W-2s.
Line 47 Form 51 Payments
Enter the total payments you made with Form 51s
on or before the due date. Include the amount of
overpayment applied from your 2022 return.
Line 48 Paid by Entity/Withheld/Affected
Business Entity (ABE)
If a pass-through entity pays or withholds income tax
for an Idaho resident owner, include the amount paid
or withheld on this line as specified on Form ID K-1.
Also, include the amount of tax paid by the ABE on the
individual’s share of ABE income. Include a copy of
Form ID K-1s with your income tax return.
Line 49 Tax Reimbursement Incentive Credit
Enter the total credit allowed from the Idaho
Reimbursement Incentive Certificate. Include a copy
of the certificate with the return.
Claim of Right Credit
If you claimed a deduction or credit on your federal
return for claim of right, complete Idaho Worksheet
CR to determine which option benefits you most on
your Idaho return. See Claim of Right Worksheets
at tax.idaho.gov/taxes/income-tax/individualincome/popular-credits-and-deductions/claimof-right-income-repayments.

Tax Due or Refund
Line 52 Penalty and Interest
Idaho law provides penalties for not filing tax returns
by the due date, not paying tax due on time, and not
prepaying enough on extension returns. For more
information or to calculate a penalty, see our Penalties
and Interest page at tax.idaho.gov/penalties.
Interest: We charge interest on the amount of tax
due, line 51, from the original due date until paid. The
rate for 2024 is 6%.
Page 12 of 52

Form 40 — Instructions

2023

(continued)

Idaho Medical Savings Account: If you make an
Idaho medical savings account withdrawal that’s
taxable and you’re under age 59 1/2, the withdrawal
is subject to penalty. The penalty is 10% of the
amount withdrawn. Check the box and enter the
amount here.

you want to refund from line 55. Any difference will be
applied to your 2024 tax and won’t be refunded.

Line 53 Nonrefundable Credit From a Prior Year
Return
If you were denied a refund from an overpayment of
tax on a prior year return because of the three-year
statute of limitations, you may be eligible to take
a credit for the amount. See Idaho Form 44 for
calculation of your credit and include it with your
return.
Line 54 Total Due
Enter the amount you owe, including penalty and
interest, on this line.

If your refund is being forwarded from a United States
financial institution to a financial institution or financial
agency located outside of the United States, check the
box on this line. If after filing your Idaho income tax
return you become aware that your electronic refund
payment will be electronically deposited in a financial
institution or financial agency located outside of the
United States, please notify us at:
Idaho State Tax Commission
PO Box 56
Boise ID 83756-0056

Don’t send cash. Payments of less than $1 aren’t
required. We charge a $20 fee on all returned
checks.

Contact your bank to make sure your deposit will be
accepted and that you have the correct routing and
account numbers.

Electronic payments. There’s no fee to pay by
ACH Debit. Our third-party provider charges a
convenience fee when you pay by credit card
or e-check. We accept American Express®,
Discover®, MasterCard®, and Visa®. For
more information, visit our E-Pay page at
tax.idaho.gov/epay.

Enter your nine-digit routing number. The routing
number must begin with 01 through 12 or 21 through
32 for bank accounts. For all IDeal accounts, the
routing number is 011001234.

Check payments. Make your check or money
order payable to the Idaho State Tax Commission.
Be sure to write your Social Security number on it,
and include it with your return. Don’t staple your
check to your return or send a check stub.
Line 56 Refund/Apply to 2024
Refund
Enter the amount of your overpayment from line 55
that you want refunded to you. Refunds of less than
$1 won’t be issued. You have three years from the
return’s due date (not including extensions) to claim
a refund. Refunds will be reduced by unpaid Idaho
tax liabilities and can be applied to unpaid liabilities
owed to other agencies.

Line 57 Direct Deposit
Complete this line if you want us to deposit your refund
directly into your bank or Idaho 529 College Savings
(IDeal) account instead of mailing you a check.

Enter the account number you want your refund
deposited into. The account number can be up to
17 characters (both numbers and letters). For IDeal
accounts, the account number will be 541 plus the
11-digit IDeal account number.
Don’t include hyphens, spaces or special symbols.
Enter the number left to right and leave any unused
boxes blank.
Check the appropriate box for account type. Check
either checking or savings, but not both. For IDeal
accounts, check the box for checking.

The agency or party seizing the refund must send
you notice of the action. Questions about a refund
seizure should be directed to the agency or party
that initiated the claim for seizure.
Apply to 2024
If you’re filing an original return, subtract the amount
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The check example above indicates where the
proper banking information is located. To locate
Page 13 of 52

Form 40 — Instructions

2023

(continued)

your IDeal account number, log into your account
at www.idsaves.org or call (866) 433-2533 for
assistance. You’re responsible for the accuracy of
this information.

You’re not authorizing the paid preparer to receive
any refund check, bind you to anything including any
additional tax liability, or otherwise represent you
before the Tax Commission.

If your financial institution rejects your request for
direct deposit, you’ll receive a check by mail instead.

This authorization is valid for up to 180 days from the
date the Tax Commission receives the return. If you
want the Tax Commission to contact you rather than
your preparer, leave the box blank.

Note: An IDeal account has a maximum balance
limit of up to $350,000 for each beneficiary.

Amended Return Only
Complete lines 58 through 61 only if you’re filing
this return as an amended return.
Line 58 Total Due or Overpaid on This Return
If the total due shown on line 54 is greater than zero,
enter it as a positive amount.
If line 54 is zero, enter the amount of overpayment
that’s shown on line 55 here as a negative amount.
Line 59 Refund from Original Return Plus
Additional Refunds
Enter the total refund amount from previous returns
for this tax year here as a positive amount.
Line 60 Tax Paid with Original Return Plus
Additional Tax Paid
Enter the total due paid from previous returns for
this tax year here as a positive amount. (Don’t
include penalty, interest, Form 51 estimated
payments, withholding, or unpaid tax.)

Signatures
Who must sign the return?
•	 You
•	 Your spouse (if filing a joint return)
•	 A paid preparer (if used). Include preparer’s
name, address, and identification number
•	 An authorized person signing for a deceased
individual or an individual unable to sign.
Include the authorized person’s relationship to
the taxpayer. Write “FILING AS SURVIVING
SPOUSE” or “UNABLE TO SIGN” in the signature
space
•	 If a taxpayer signs with an “X,” this mark must be
witnessed
•	 Not signing the return will delay processing

Line 61 Amended Tax Due or Refund
Add lines 58 and 59, then subtract line 60. A positive
amount is your amended tax due. A negative amount
is your amended refund.
Tax Preparer Contact Box
This box applies only if you paid a tax preparer to
complete your return. If you check the box, you’re
authorizing the Tax Commission to discuss your return
with the paid preparer identified on the return.
You’re also authorizing the paid preparer to:
•	 Give the Tax Commission any information that’s
missing from your return, and
•	 Call the Tax Commission for information about
the processing of your return or the status of your
refund or payments

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Page 14 of 52

Form 43 — Instructions
Part-year Resident and Nonresident
Income Tax Return
Instructions are for lines not fully explained on the
form. General information instructions beginning on
page 2 also apply to this form.
Grocery Credit Refund Only
You must be an Idaho resident or an Idaho resident
on active military duty to qualify for a refund of
the grocery credit. Part-year residents can claim a
prorated credit against their tax due but don’t qualify
for a refund of any excess credit. Nonresidents
don’t qualify for the credit.
If you were a resident, but your spouse was a
part-year resident or nonresident and you aren’t
required to file an income tax return, file Form 43 to
claim a refund of the grocery credit allowed to the
resident.
You aren’t required to include a copy of the federal
return.
Complete Form 43 as follows:
•	 Complete the top of the form through line 6
•	 Skip lines 7 through 27
•	 Write “NRF” (Not Required to File) on line 28,
Column A. Leave line 28, Column B blank
•	 Skip lines 29 through 31
•	 Complete line 32a if you (or your spouse) are
age 65 or older
•	 Skip lines 33 through 51
•	 Cross through the $10 on line 52, Permanent
Building Fund, and write “NRF”
•	 Skip lines 53 through 62
•	 Enter your grocery credit amount on line 63
using the grocery credit worksheet on page 24
•	 Complete applicable lines 64 through 77
•	 Skip lines 78 through 81
•	 Complete the bottom of Form 43 below line 81
Heading
Write your name, address, and Social Security
number (SSN) in the spaces provided. If you
don’t have an SSN, write in your Individual Tax
Identification Number (ITIN).
If you don’t have or aren’t required to have an SSN
or ITIN, enter “NRA” (Nonresident Alien) in the SSN
space. If you’ve applied for an ITIN and haven’t
received it from the IRS before you file your Idaho
return, enter “Form W-7” in the space provided for
the SSN. If you enter “Form W-7,” include a copy of
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2023

your federal Form W-7 with your return. Once you
receive your ITIN from the IRS, you must provide it
to the Tax Commission before your return can finish
processing.
If you receive an SSN after using an ITIN, you must
use the SSN and stop using your ITIN. It’s your
responsibility to notify the Tax Commission so your
return can finish processing.
Be sure that your return and W-2 forms show the
correct SSN or ITIN. An error in your SSN or ITIN will
delay your refund.
Amended Return
You can use this form as an original return or an
amended return.
If you’re filing this form as an amended return, check
the box at the top of the form. Enter the number from
the following list that best describes your reason for
amending.
1.	 Federal Audit
2.	 Net Operating Loss Carryback – Include Form 56
or a schedule showing the application of the loss
3.	 Federal Amended – Include a complete copy of
your federal return
4.	 Other – Include an explanation
Complete the entire form and schedules using the
corrected amounts. Don’t include a copy of your
original return with the amended return.
Nonresident Alien
Nonresident aliens for federal purposes are
nonresidents for Idaho income tax purposes. If you’re
(you or your spouse) a nonresident alien, check the
box below the address and check Nonresident for your
residency status.
Residency Status
Check the box that applies to your residency status
for 2023. If you’re married and filing a joint return,
check the box that applies to your spouse’s residency
for 2023. Use Form 43 if one of you is a resident and
the other isn’t, and you filed a joint federal return. See
page 4 to determine your status.
•	 If you’re (you or your spouse) an Idaho resident,
check box 1.
•	 If you’re (you or your spouse) a member of the
armed forces on active military duty outside
Idaho and Idaho is your state of permanent
residence, check box 2. (An Idaho resident on
Page 15 of 52

Form 43 — Instructions
active military duty in or outside Idaho must file
on Form 40 unless your spouse is a part-year
resident or nonresident.)
•	 If you’re (you or your spouse) a nonresident,
check box 3.
•	 If you or your spouse moved into or out of Idaho
and were a resident for only part of the year,
check box 4.
•	 If you’re (you or your spouse) in Idaho on
military orders but your state of permanent
residence is another state, check box 5. See
the instructions for Military Personnel on
page 5 of this booklet.
If the earned income of a servicemember’s spouse
is exempt from Idaho taxation on Idaho Form 43,
the servicemember must check box 5 and the
qualifying spouse must check box 3.
If you’re a resident filing Forms 43 and 39NR due
to a nonresident spouse, the amounts reported
for additions and subtractions in the Idaho column
must be the total amount for your share of those
additions or subtractions plus the amount of any
Idaho additions or subtractions of your nonresident
spouse.
Full Months in Idaho This Year
If you were a part-year resident, enter the number
of full months you lived in Idaho in 2023. If you’re
married and filing a joint return, enter the number
of full months your spouse lived in Idaho in 2023.
Nonresidents don’t respond to this question.
Current State of Residence
Use the two-letter state abbreviation to report
your current state of residence. For example,
if you moved to Idaho during 2023, use ID.
All part-year residents and nonresidents must
complete this section. Spouses with separate
domiciles may report different states. If you’re a
military nonresident, indicate your military home of
record.
Lines 1 Through 5 Filing Status
Check the box indicating your Idaho filing status.
Refer to General Information on page 2 for further
information on filing status.
Line 6 Household
Line 6a. Yourself. Enter “1” unless someone else
claims you as a dependent on their return.

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(continued)

Line 6b. Spouse. Enter “1” if you’re filing a joint
return.
Enter “1” if your spouse died during 2023 and you’re
filing a joint return.
Leave the line blank if someone else claims your
spouse as a dependent on their return.
Line 6c. Dependents. List your dependents. Include
their SSN and birthdate. If you have more than four
dependents, continue on Form 39NR, Part G. Enter
the total number of dependents on the line.
If you’re the noncustodial parent of a dependent and
are claiming them on your return, include federal
Form 8332 or a copy of the court order with the return.
See irs.gov for more information.
Line 6d. Total Household. Add lines 6a through 6c.

Idaho Income
Complete your federal income tax return before you
begin this form. You’ll use the information from your
federal income tax return to complete your Form 43.
Line 7 Wages, Salaries, Tips, etc.
Enter the total wages, salaries, tips, etc. received for
all employment while an Idaho resident or part-year
resident and for all work performed in Idaho while a
nonresident. If you’re a nonresident who works for an
employer both in Idaho and outside of Idaho, visit our
Idaho Residency Status webpage at tax.idaho.gov/
IITbasics. It explains how to determine the amount of
income that’s taxable to Idaho.
If your military home of record is Idaho and you’re on
active duty outside Idaho, include all of your wages.
Your active duty military wages earned outside of
Idaho can be deducted on Form 39NR, Part B, line 7.
If you have nonmilitary wages that are taxable in
another state, you can take a credit for tax paid to
other states on Form 39NR, Part D.
If your military home of record wasn’t Idaho and
you were on active duty in Idaho, don’t include your
military wages.
If the servicemember’s spouse’s earned income
isn’t taxable by Idaho as described on page 5 under
Military Personnel, don’t include the qualifying
spouse’s wages.
If the wages on line 7 don’t match the Idaho income
amounts on your Form W-2s, include a schedule or
explanation.

Page 16 of 52

Form 43 — Instructions
Line 8 Taxable Interest Income
From federal Form 1040 or 1040-SR, line 2b, enter
all:
•	 Interest income received while an Idaho resident
•	 Business interest income earned from Idaho
sources
•	 Interest income on installment sales of Idaho
property
Note: Don’t include interest earned from a personal
bank account in Idaho while a nonresident.
Line 9 Dividend Income
From federal Form 1040 or 1040-SR, line 3b,
enter dividends earned while an Idaho resident
or part-year resident and dividends earned from
Idaho sources while a nonresident.
Line 10 Alimony Received
From federal Schedule 1, line 2a, enter alimony
received while an Idaho resident or part-year
resident.
Line 11 Business Income or Loss
From federal Schedule 1, line 3, enter the income
or loss reported on Schedule C or C-EZ from
businesses or professions engaged in while an
Idaho resident or part-year resident or conducted
in Idaho while a nonresident. A nonresident
conducting business in Idaho and another state
must apportion income or loss. Complete and
include Idaho Form 402.
Line 12 Capital Gain or Loss
From federal Form 1040 or 1040-SR, line 7, enter
the gain or loss reported on Schedule D from:
•	 The sale of capital assets located in Idaho
•	 The sale of capital assets while you were
residing in Idaho, or
•	 The receipt of installment sale proceeds while
you were an Idaho resident
Line 13 Other Gains or Losses
From federal Schedule 1, line 4, enter other gains
or losses reported on federal Schedule 4797 that
occurred while an Idaho resident or part-year
resident or from an Idaho business.
Line 14 IRA Distributions
From federal Form 1040 or 1040-SR, line 4b, enter
the amount of IRA distributions received while an
Idaho resident or part-year resident.

EIN00046

11-06-2023 

2023

(continued)

Line 15 Pensions and Annuities
From federal Form 1040 or 1040-SR, line 5b, enter
the amount of pensions and annuities received while
an Idaho resident or part-year resident.
Line 16 Rents, Royalties, Partnerships, etc.
From federal Schedule 1, line 5, enter the amount
reported on Schedule E earned or received while
an Idaho resident or part-year resident or related to
Idaho business or property. Report passive activity
losses from Idaho activities that are “Allowed”
losses from federal Form 8582 and corresponding
worksheets.
Line 17 Farm Income or Loss
From federal Schedule 1, line 6, enter the amount
reported on Schedule F that’s farm income or
loss incurred while an Idaho resident or part-year
resident or from an Idaho farming operation. A
nonresident operating a farm in Idaho and another
state must apportion income or loss. Complete and
include Idaho Form 402.
Line 18 Unemployment Compensation
From federal Schedule 1, line 7, enter any
unemployment compensation received while an
Idaho resident or part-year resident. Enter the amount
received from the Idaho Department of Labor while a
nonresident.
Line 19 Other Income
From federal Schedule 1, line 8, enter any other
income received while an Idaho resident or part-year
resident or from an Idaho source. An example is:
•	 Idaho lottery winnings over $600
Also include:
•	 The total of any state income tax refunds
received while an Idaho resident from federal
Schedule 1, line 1, state tax rebates for Idaho
servicemembers, and
•	 The taxable amount of Social Security benefits
received while an Idaho resident from federal
Form 1040 or 1040-SR, line 6b.
Don’t include federal NOL on this line.

Idaho Adjustments
Line 21 Deductions for IRAs and Health Savings
Accounts
Enter Idaho’s portion of:
•	 The IRA deduction included on federal Schedule 1,
line 20

Page 17 of 52

Form 43 — Instructions
• The deduction for a federal health savings
account included on Schedule 1, line 13

• The IRC 501(c)(18)(D) retirement plan included
on Schedule 1, line 24f
1. Enter the amount of wages and earned
income you computed on the federal IRA
deduction worksheet and the amount of
income you earned from the business
that the federal health savings account
deduction is claimed on .............................

%

1. Enter total income from Form 43, line 20.
Don’t include federal NOL in line 20 .........

%

Note: S corporation wages paid to a more-than-2%
shareholder qualify for self-employed health
insurance.
11-06-2023

A

x
x
x

B

=
=
=

C

Total Idaho Self-Employment
Tax Deduction ..........................................
2. Self-Employed SEP, SIMPLE, and Qualified Plans
Enter the total federal deduction amount related
to each Schedule C, E, and/or F in Column A.
Compute the Idaho percentage in Column B by
dividing the Idaho self-employment income reported
by each business by the total self-employment
income reported by each business. Multiply
Column A by Column B and enter in Column C.
A
Business 1
Business 2
Business 3

B
x
x
x

C
=
=
=

Total Idaho Self-Employed
Retirement Plan Deduction ......................

Line 23 Deductions for Self-employed
Enter Idaho’s portion of the deductions for
self-employment tax, self-employed health insurance,
and contributions to a Simplified Employee Pension
Plan (SEP), a Savings Incentive Match Plan for
Employees (SIMPLE), or a qualified plan reported on
your federal Schedule 1, lines 15, 16, and 17.

EIN00046

1. Self-Employment Tax Deduction
Enter the total federal deduction amount related
to each Schedule C, E, and/or F in Column A.
Compute the Idaho percentage in Column B
by dividing the Idaho income reported by each
business by the total income reported by each
business. Multiply Column A by Column B and
enter in Column C.
Business 1
Business 2
Business 3

Line 22 Moving Expenses, Alimony Paid, and
Student Loan Interest
If you claimed a deduction on federal Schedule 1,
line 14, 19a, or 21 for moving expenses, alimony
paid, or student loan interest, complete this
worksheet to determine your Idaho deduction, if any:

2. Enter total income from federal
Form 1040 or 1040-SR, line 9, less
federal NOL unless already subtracted .....
3. Divide line 1 by line 2.
(Can’t exceed 100%) .................................
4. Enter total allowable federal amount of
moving expenses, alimony paid, and
student loan interest ..................................
5. Multiply line 4 by line 3. Enter this
amount on line 22 ......................................

(continued)

To compute Idaho’s portion, complete this worksheet.
If you have amounts from more than three businesses,
add more lines.

• The Archer MSA deduction included on
Schedule 1, line 23, and

2. Enter the amount from line 1 received
while an Idaho resident or part-year
resident or from Idaho sources ..................
3. Divide line 2 by line 1.
(Can’t exceed 100%) .................................
4. Enter amounts from federal Schedule 1,
lines 13, 20, 23, and 24f ............................
5. Multiply line 4 by line 3. Enter this
amount on line 21 ......................................

2023

3. Self-Employed Health Insurance Deduction
Enter the total federal deduction amount related
to each Schedule C, E, and/or F in Column A.
Compute the Idaho percentage in Column B
by dividing the Idaho income reported by each
business by the total income reported by each
business. Multiply Column A by Column B and enter
in Column C.
A
Business 1
Business 2
Business 3

B
x
x
x

C
=
=
=

Total Idaho Self-Employed
Health Insurance Deduction ....................
4. Total Self-Employment Deduction
Add the total amounts in Column C,
lines 1, 2, and 3 ........................................
Page 18 of 52

Form 43 — Instructions
Line 24 Penalty on Early Withdrawal of Savings
Enter the amount from federal Schedule 1, line 18
that relates to interest income reported as Idaho
income.
Line 25 Other Deductions
You may qualify for an Idaho deduction if you
claimed any of the following items on federal
Schedule 1, lines 11 through 25 relating to:
•	 Reservists
•	 Performing artists
•	 Fee-based government officials
•	 Educator expenses
•	 A write-in deduction for rental of personal
property
•	 Reforestation amortization and expenses*
•	 Attorney fees and court costs
•	 Jury duty pay

2023

(continued)

Tax Computation
Line 32a Age 65 or Older
If you’re 65 or older, check the box for “Yourself.” If
you’re filing a joint return and your spouse is 65 or
older, check the box for “Spouse.” If your 65th birthday
was on January 1, 2024, you may consider yourself
65 on December 31, 2023. The boxes you check must
match your federal return.
Line 32b Blind
Check the box for “Yourself” if you’re blind. If you’re
filing a joint return and your spouse is blind, check the