Most income reported on your federal return transfers to your Idaho return automatically. However, Idaho requires certain types of income and adjustments to be added back when calculating Idaho taxable income.
If any of the items below apply to you, enter them in the Additions to Income section of your Idaho return. The screen for these entries is shown here: (Image: Idaho additions to income screen)
Program Entry
- Idaho Return
- Additions to Income
Federal Net Operating Loss (NOL) Carryforward
A federal Net Operating Loss (NOL) carryforward may differ from the amount Idaho allows.
Enter the total federal NOL carryforward reported on your federal return. The allowable Idaho portion, if applicable, can generally be claimed later in the Idaho deductions section.
You should enter the federal NOL amount exactly as reported on your federal return.
Certain Federal Capital Loss Carryforward
Enter any capital loss carryforward claimed on your federal return that:
- Was incurred before you became an Idaho resident, or
- Relates to activities that weren't taxable by Idaho
Because Idaho may not recognize all federal capital loss carryforwards, this adjustment helps ensure the correct amount of income is taxed by Idaho.
Non-Idaho State and Local Bond Interest and Dividends
Idaho taxes certain municipal bond interest that may be excluded from federal taxable income.
Enter any interest or dividend income received from:
- Other states
- Cities
- Counties
- Municipal entities outside Idaho
This income may not be included in your federal adjusted gross income but must be added back for Idaho tax purposes.
Idaho College Savings Account Withdrawal
If you made a nonqualified withdrawal from an Idaho college savings account, you must add that amount back to Idaho income.
A withdrawal is generally considered nonqualified when the funds are used for expenses that don't meet the requirements for tax-free education distributions.
If your withdrawal was qualified, no addition is required.
Bonus Depreciation Adjustment
Idaho doesn't fully conform to certain federal bonus depreciation rules.
You may need to make an addition to income if you claimed federal bonus depreciation for:
- Property acquired before 2008 or after 2009, or
- Qualified production property for which construction began after January 19, 2025, and before January 1, 2029, and which was placed in service before January 1, 2031
If this applies:
- Calculate Idaho depreciation as though bonus depreciation wasn't claimed.
- Determine the Idaho adjusted basis of the property.
- Calculate any Idaho gain or loss using Idaho depreciation amounts.
- Compare federal depreciation to Idaho depreciation.
- If federal depreciation exceeds Idaho depreciation, enter the difference as an addition to income.
Because bonus depreciation computations can be complex, you may want to review the depreciation schedules supplied with your federal return before entering an amount.
Other Additions
If you have other Idaho-required income adjustments not listed separately on the screen, enter them in the Other Additions section according to your supporting documentation.
How These Adjustments Affect Your Return
Additions to income increase your Idaho taxable income and may:
- Increase your Idaho tax liability
- Reduce your refund
- Change the amount of Idaho deductions or credits available to you
Only enter amounts that apply to your specific situation, and use the figures reported on your federal return or supporting tax documents whenever possible.
If an item doesn't apply to you, leave that field blank or enter zero, depending on the program instructions.
Additional Information
For additional information about these additions to income and other additions, please click here.