How Do I Claim the Idaho Credit for Taxes Paid to Another State?

If both Idaho and another state taxed the same income, you may qualify for the Idaho Credit for Taxes Paid to Another State. Common examples include wages earned in another state while living in Idaho or business income that is taxed by both Idaho and another state.

For most taxpayers, the credit is calculated automatically when you add a nonresident state return to an existing Idaho resident return. If you're filing an Idaho part-year resident return, you'll need to manually enter information from the other state's return in the Idaho Credits section.

When the Credit Is Calculated Automatically

If you:

• Filed an Idaho resident return, and
• Added a nonresident return for another state,

the program will generally calculate the credit automatically based on the information entered in both state returns.

When Manual Entry Is Required

If you're filing an Idaho part-year resident return, you'll need to provide information from the other state's return, including:

• The other state's tax liability
• The amount of income taxed by both Idaho and the other state

You'll find these amounts on the PDF copy of the other state's completed return.

Program Entry

To manually enter the credit:

1. Select State from the left-side menu.
2. Click the three dots next to the Idaho return and choose Edit.
3. Select Begin next to Credits.
4. Select Begin next to Credits for Taxes Paid to Another State.
5. Enter the requested information from the other state's return.

If you need to claim the credit for more than one state, repeat these steps for each state.

Additional Information

Idaho requires a separate calculation for each state for which you're claiming the credit. The credit is generally limited to the lesser of the Idaho tax attributable to the double-taxed income or the tax paid to the other state. Taxpayers claiming the credit should keep a copy of the other state's return and any supporting documentation. 

For Idaho residents, see the instructions for 2026 Form 39R Instructions - Supplemental.pdf, Part C, Credit for Income Tax Paid to Other States.

For part-year residents, see the instructions for 2026 Form 39NR Instructions - 2026.10.02.pdf, Part C, Credit for Income Tax That Part-year Residents Paid to Other States.

For additional guidance, review the TaxSlayer support article: What credit is available for taxes paid to another state.