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Idaho Subtractions

Article ID: 33480 Print
Idaho Subtractions


Allowable Subtractions from Idaho Income:

Idaho Net Operating Loss (NOL) Carryover and Carryback
Enter the Idaho NOL carryover. Attach 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. Attach 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
Enter the amount of all state income tax refunds included in income on line 10 of federal Form 1040. If you are filing federal Form 1040A or 1040EZ, enter zero.

Interest from US Government Obligations
Interest income you received from obligations of the U.S. Government isn't subject to the Idaho tax. Deduct any U.S. Government interest included in federal adjusted gross income, line 9, Form 40. Examples of obligations of the U.S. Government 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 Vally Authority Bonds
  • Territory of Alaska
  • Territory of Hawaii
  • Territory of Samoa
  • US Series EE and HH Bonds
  • US Treasury Bills and Notes
  • Virgin Islands

Interest income received from the Federal National Mortgage Association (FNMA) and the Government National Mortgage Association(GNMA) isn't paid by the U.S. Government and is subject to Idaho income tax. If you have interest income from a mutual fund that invests in both nonexempt securities and exempt U.S. government securities, you may deduct the portion of the interest that is 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 B, line 4, net of the expenses related to the federal obligations fromForm ID K-1, Part B, line 5.

Insulation of an Idaho Residence
To qualify for this deduction, your Idaho home must have existed, been under construction, or had a building permit issued on or before January 1, 1976. The insulation must be in addition to any existing insulation and may not be a replacement.

Insulation means any material commonly used in the building industry and installed to retard the passage of heat into or out of a building, such as fiberglass, rock wool, weather stripping, double-pane windows, storm doors and storm windows.

Insulated siding does not qualify unless the cost of the siding and the insulating material is separately stated, in which case the cost of the insulating material alone qualifies. The amount charged for labor to install the insulation is also deductible.

Alternative Energy Device Deduction
If you install an alternative energy device in your Idaho residence, you may deduct a portion of the amount actually paid or accrued (billed but not paid). 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.

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Article Details
Views: 1264 Created on: Jun 15, 2013
Date updated: Aug 14, 2015
Posted in: STATES, Idaho

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