When the same income is taxed by both Idaho and another state, you may be entitled to 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 credit applies to more than one state, use a separate Form 39R for each state. See instructions, page 25.
You may be entitled to a credit for tax paid to another state by a pass-through entity. If a pass-through entity paid a tax to another state, it should report that information to you. Include a copy of Form K-1.
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 living in Idaho.
Income from a business or profession earned in another state that has an income tax, while a resident of Idaho.