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.
State Income Tax Refund
If you itemized your deductions on your 2018 federal Form 1040, enter the amount of all state income tax refunds included in income on federal Schedule 1, line 1.
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 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.
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. Energy efficiency upgrades include: • Insulation that’s added to, not replacing, existing insulation. Insulated siding doesn’t qualify unless the 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 is also deductible. Storm doors don’t qualify for this deduction.
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 Division of Environmental Quality (DEQ) within 30 days from the date of purchase of the qualifying device. The DEQ will give you a receipt to verify they received and destroyed the noncertified wood stove. You must install the natural gas or propane heating unit, the EPA-certified wood stove or pellet stove the same tax year that you surrender the nonqualifying wood stove to the DEQ.
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.
Social Security and Railroad Benefits
Idaho doesn’t tax Social Security benefits, benefits paid by the Railroad Retirement Board or Canadian 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
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.
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
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, 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
Active Duty Military Pay Earned Outside of Idaho
If you’re serving in the United States Army, Navy, Marine Corps, Air Force or Coast Guard on active military duty that is continuous and uninterrupted for 120 days, 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.
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.
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 amounts deducted on federal Form 1040 or 1040-SR. 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. 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.
Idaho College Savings Program
You can contribute up to $6,000 ($12,000 if married filing a joint return) per year to a qualified Idaho college savings program and deduct the contribution. The account must be established with Ascensus College Savings, Inc. Designate the account owner and beneficiary at the time you establish the account. The account owner can make withdrawals for payment of education expenses for the beneficiary. The person that withdraws the funds must report the amounts withdrawn as income according to IRC Section 529. More information is available at idsaves.org or by calling (866) 433-2533.
Maintaining a 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
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
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.
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.
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.
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 worksheet in the column to the right to calculate the long-term care insurance allowed as a deduction.
Workers’ Compensation Insurance
A self-employed individual can deduct the actual cost of amounts paid for workers’ compensation insurance coverage in Idaho, if the cost isn’t deducted elsewhere
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.