Idaho has made the following changes to the tax laws for the 2018 tax year:
- Idaho has adopted the Internal Revenue Code as of January 1, 2018. However, Idaho has NOT adopted the bonus depreciation for assets acquired after 2009.
- Taxpayers in Idaho now have 120 days to report a change in federal taxable income or any tax paid to another state that they have claimed a credit for, instead of 60 days.
Deductions and Credits
- Idaho now allows a deduction of up to 20% for qualified business income from a domestic business operated as a sole proprietorship or through an S Corp or Corporation. The federal calculation is not included in your federal gross income so you will need to report the amount on your Idaho Form 40 or 43.
- The charitable contribution credit now includes donations to Idaho based medical residency placement organizations.
- The Idaho adoption expenses deduction has increased to $10,000 (was $3,000).
- Idaho now has a nonrefundable child tax credit of $205 per qualifying child.
- All tax rates have been decreased by .475%.