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.
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. 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.
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.
Idaho College Savings Account Withdrawal
If you make a nonqualified withdrawal from an Idaho college savings account, enter the amount withdrawn less any amounts reported on your federal Form 1040 or 1040-SR. Include withdrawals from Idaho college savings programs that are 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.
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.
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.
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