Idaho allows for a subtraction of retirement income on your state return if the taxpayer meets both parts of the two-part qualification that the state requires.
Part 1 Age, Disability, and Filing status:
- The recipient of the retirement benefits must be at least 65 years old OR be classified as disabled and at least 62 years old.
- If you are married, you cannot claim this deduction if you file separately.
Part 2 Qualified Retirement Benefits:
Your retirement income must come from one of the following:
- Civil Service Employees
- Idaho Firefighters
- Police Officers of an Idaho City
- Service Members
- State Section
- Deductions from Income
- Retirement Benefits Deduction