Additions to Idaho income are necessary when federal law allows a reduction and Idaho does not. If you have any of the following you will use ADDITIONS to add back the amount for ID tax purposes.
Federal Net Operating Loss Carry-Over
Generally the allowable federal net operating loss carryover is not the same amount allowed on the Idaho return. Therefore, you must enter any net operating loss carryover included on your federal return. The allowable Idaho net operating loss carryover will then be claimed as a subtraction.
Capital Loss Carryover
Enter any capital loss claimed on your federal return (Schedule D) incurred before you became a resident of Idaho, or capital losses from activities that weren't taxable to Idaho.
Non-Idaho State and Local Bond Interest
Enter the amount of interest and dividends you received from municipal bonds of other state governments, including their counties or cities, or from obligations of any foreign country. This income is not reported on your federal return. This includes your distributive share of interest and dividends not taxable under the Internal Revenue Code from Form ID K-1, Part B, line 2. However, don't include the interest income from Idaho municipal securities reported on Form ID K-1, Part B, line 3, or the expenses relating to Idaho municipal securities reported on Form ID K-1, Part B, line 5.
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If you make a nonqualified withdrawal from an Idaho college savings account, enter the amount withdrawn less any amounts reported on your federal Form 1040.
Withdrawals from Idaho College Savings Programs that are transferred to a qualified program operated by another state must be included on line 4. The amount added back is limited to your contributions during the previous 12 months.
OTHER ADDITIONS- LINE 5
Retirement Plan Lump-Sum Distributions
Enter the taxable amount of a lump-sum distribution from a retirement plan reported on federal Form 4972. The amount subject to Idaho tax includes the ordinary income portion and the amount eligible for the federal capital gain election.
Partner and Shareholder Additions
Include on this line your additions from Form ID K-1, Part B, line 9.
Idaho Medical Savings Account Withdrawals
If you withdraw funds from an Idaho medical savings account and do not use the funds to pay eligible medical expenses, the withdrawal is subject to Idaho tax. Report this amount as an other addition. Eligible medical expenses include medical, vision and dental care, medical insurance premiums, and long-term care expenses.
If you make a withdrawal that is subject to tax and you are under age 59 1/2, the withdrawal is subject to penalty. The penalty is 10% of the amount withdrawn. OnLine Taxes will compute this penalty for you.
If you are claiming the deduction up to $250 for educator out-of-pocket expenses allowed by the Internal Revenue Code, report this amount as an other addition.