Idaho Tax Form 39R - Supplemental Schedule (Residents) Instructions

Complete Form 39R if you are filing a Form 40. If you are filing a Form 43, complete 39NR.

PART A. ADDITIONS

LINE 1 FEDERAL NET OPERATING LOSS (NOL) CARRYOVER

Generally the allowable federal NOL carryover isn't the sameamount allowed on the Idaho return. Therefore, you must enteron line 1 any NOL carryover included on your federal return.The allowable Idaho NOL carryover will then be claimed as asubtraction on line 1, Part B.

LINE 2 CAPITAL LOSS CARRYOVER

Enter on line 2 any capital loss claimed on your federal return(Schedule D) incurred before you became a resident of Idaho, orcapital losses from activities that weren't taxable by Idaho.

LINE 3 NON-IDAHO STATE AND LOCAL BOND INTEREST AND DIVIDENDS

Enter the amount of interest and dividends you received frommunicipal bonds of other state governments, including theircounties or cities, or from obligations of any foreign country.This income isn't reported on your federal return.

LINE 4 IDAHO COLLEGE SAVINGS ACCOUNT WITHDRAWAL

If you make a nonqualified withdrawal from an Idaho collegesavings account, enter the amount withdrawn less any amountsreported on your federal Form 1040.

Withdrawals from Idaho College Savings Programs that aretransferred to a qualified program operated by another statemust be included on line 4. The amount added back is limited to your contributions during the previous 12 months.

LINE 5 OTHER ADDITIONS

RETIREMENT PLAN LUMP-SUM DISTRIBUTIONS. Enter the taxable amount of a lump-sum distribution from aretirement plan reported on federal Form 4972. The amount subject to Idaho tax includes the ordinary income portion and theamount eligible for the federal capital gain election.

PARTNER AND SHAREHOLDER ADDITIONS. Partners and shareholders must include their share of the Idaho additions to partnership and S corporation income not included onthe federal Schedule K-1. This information is available from the preparer of the partnership or S corporation return.

For example: Interest income from other state governments nottaxable for federal purposes isn't included on a federal ScheduleK-1. The partner or shareholder must report that interest income.

IDAHO MEDICAL SAVINGS ACCOUNT WITHDRAWALS. If you withdraw funds from an Idaho medical savings accountand don't use the funds to pay eligible medical expenses, thewithdrawal is subject to Idaho tax. Report this amount as another addition. Eligible medical expenses include medical, visionand dental care, medical insurance premiums, and long-term care expenses.

If you make a withdrawal that is subject to tax and you are underage 59 1/2, the withdrawal is subject to penalty. The penalty is10% of the amount withdrawn. Report the penalty on line 52, Form 40, and check the box for an ineligible withdrawal.

EDUCATOR EXPENSES. If you are claiming the deduction up to $250 for educator out-of pocket expenses allowed by the Internal Revenue Code, reportthis amount as an other addition.

PART B. SUBTRACTIONS

LINE 1 IDAHO NET OPERATING LOSS (NOL) CARRYOVERAND 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 theamount 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.

LINE 2 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 federalForm 1040A or 1040EZ, enter zero.

LINE 3 INTEREST FROM U.S. 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 Valley Authority Bonds
  • Territory of Alaska
  • Territory of Hawaii
  • Territory of Samoa
  • U.S. Series EE and HH Bonds
  • U.S. Treasury Bills and Notes
  • Virgin Islands

Interest income received from the Federal National MortgageAssociation (FNMA) and the Government National MortgageAssociation (GNMA) isn't paid by the U.S. Government and issubject to Idaho income tax.

If you have interest income from a mutual fund that invests inboth nonexempt securities and exempt U.S. governmentsecurities, you may deduct the portion of the interest that isattributable to direct U.S. government obligations. This amount must be identified by the mutual fund to be deductible.

LINE 4 INSULATION OF AN IDAHO RESIDENCE

To qualify for this deduction, your Idaho home must haveexisted, been under construction, or had a building permit issuedon or before January 1, 1976. The insulation must be in addition to any existing insulation and can't be a replacement.

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

Insulated siding doesn't qualify unless the cost of the siding andthe insulating material is separately stated, in which case thecost of the insulating material alone qualifies. The amount charged for labor to install the insulation is also deductible.

LINE 5 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 oraccrued (billed but not paid). Qualifying devices include:

  • a system using solar radiation, wind or geothermal resourceprimarily to provide heating or cooling, or produce electricalpower, or any combination thereof
  • a fluid-to-air heat pump operating on a fluid reservoir heated bysolar radiation or geothermal resource but not an air-to-air heatpump unless it uses geothermal resources as part of the system
  • a natural gas or propane heating unit that replaces anoncertified wood stove
  • an Environmental Protection Agency (EPA) certified woodstove or pellet stove meeting the most current industry andstate standards that replaces a noncertified wood stove

A noncertified wood stove is a wood stove that doesn't meet the most current EPA standards. The noncertified wood stove must be taken to a site authorized by the Division of EnvironmentalQuality (DEQ) within 30 days from the date of purchase of thequalifying device.

The natural gas or propane heating unit, the EPA-certified woodstove, or pellet stove must be installed the same tax year that thenonqualifying wood stove is turned in to the DEQ.

In the year the device is placed in service, you can deduct 40% of the cost to construct, reconstruct, remodel, install or acquirethe device, but not more than $5,000.

In the next three years after installation, you can deduct 20% of these costs per year, but not more than $5,000 in any year.

Lines a - d Complete the line(s) that apply to the year youacquired the device(s). For example, if your device was acquiredin 2005, complete line d. Enter the type of device and total cost. Multiply the total cost by the appropriate percentage.

Line 5e Total your deduction on line 5e. Line 5e can't be more than $5,000.

LINE 6 CHILD AND DEPENDENT CARE

If you were able to claim the federal Credit for Child and DependentCare Expenses, you are allowed an Idaho deduction for the childcare expenses you paid for the care of your dependents. The Idaho deduction is a different amount than the federal credit.

Complete this worksheet to determine your Idaho child ordependent care deduction. Refer to federal Form 2441 or Form 1040A, Schedule 2, to determine amounts to enter on lines 1 through 6.

1. Enter the amount of qualified expenses youincurred and paid in 2008. Don't include amounts paid by your employer or excluded from taxable income ................ _________
2. Enter $3,000 for one child or dependent, $6,000 for more than one child or dependent, cared for during the year ........... _________
3. Enter excluded benefits from Part III of Form 2441, or Form 1040A, Schedule 2 ............. _________
4. Subtract line 3 from line 2. If zero or less, stop. You can't claim the deduction .......... _________
5. Enter your earned income ......... _________
6. If married filing a joint return, enter yourspouse's earned income. All others enter the amount from line 5............ _________
7. Enter the smallest of line 1, 4, 5, or 6 here and on line 6, Form 39R, Part B ....... _________

Attach federal Form 2441 or Form 1040A, Schedule 2, Child and Dependent Care Expenses, to your return.

LINE 7 SOCIAL SECURITY AND RAILROAD BENEFITS

Idaho doesn't tax Social Security benefits, benefits paid by theRailroad Retirement Board or Canadian Social Security benefits(OAS or CPP) that are taxable on your federal return.

Exempt payments from the Railroad Retirement Board include:

  • Retirement, supplemental, and disability annuities.
  • Unemployment and sickness benefits.

Enter the taxable amount of Social Security benefits shown onyour federal Form 1040, line 20b, or Form 1040A, line 14b. Don't enter the amount reported on line 23, Form 1040, or line14a, Form 1040A.

Enter the taxable amount of railroad benefits shown on yourfederal Form 1040, line 16b, or Form 1040A, line 12b. Don't enter the amount reported on line 16a, Form 1040, or line 12a, Form 1040A.

If subtracting benefits from the Railroad Retirement Board, attach Form RRB-1099 or RRB-1099-R.

Disability pension paid by the Federal Railroad Retirement Actmay be included on line 7 of Form 1040 as wages, if you areunder the minimum retirement age.

LINE 8 RETIREMENT BENEFITS DEDUCTION FOR QUALIFIED RETIREMENT BENEFITS

If you are age 65 or older, or if you are disabled and age 62 orolder, you may be able to deduct some of the retirement benefitsand annuities you receive. You can't claim this deduction if youfile married filing separate.

Only the following are qualified retirement benefits:

  • Civil Service Employees: Retirement annuities paid by theCivil Service Retirement System to a retired civil serviceemployee or the unremarried widow of the employee if therecipient is age 65 or older, or disabled and age 62 or older. Retirement annuities paid by the Federal Employees Retirement System don't qualify.
  • Idaho Firemen: Retirement benefits paid from the firemen’sretirement fund of the state of Idaho to a retired fireman or the unremarried widow of a retired fireman if the recipient is age 65or older, or disabled and age 62 or older.
  • Policemen of an Idaho city: Retirement benefits paid from thepolicemen’s retirement fund of a city within Idaho to a retiredpoliceman or the unremarried widow of a retired policeman ifthe recipient is age 65 or older, or disabled and age 62 orolder.
  • Servicemen: Retirement benefits paid by the United States toa retired member of the U.S. military or the unremarried widowof such member if the recipient is age 65 or older, or disabledand age 62 or older.

The amount deducted must be reduced by retirement benefitspaid under the Federal Social Security Act and the Tier I benefitspaid under the Federal Railroad Retirement Act received by youand your spouse.

Disability pension paid by the Federal Railroad Retirement Actmay not be included in Box 5 of your Form RRB-1099, if you areunder the minimum retirement age. Instead it may be includedon line 7 of Form 1040 as wages.

The maximum amounts that may be deducted for 2008 are:

Married filing jointly:

  • age 65 or older ............................................. $39,330
  • age 62 or older and disabled ......................... $39,330

Single:

  • age 65 or older ............................................. $26,220
  • age 62 or older and disabled ..........................$26,220

Complete Part C and attach Form(s) 1099 for all qualifiedretirement benefits claimed.

LINE 9 TECHNOLOGICAL EQUIPMENT DONATION

Enter the fair market value of technological equipment donated to a public elementary or secondary school, public or privatecollege or university, public library, or library district located inIdaho. Items that qualify for this deduction are limited to computers, computer software, and scientific equipment or apparatus manufactured within five years of the date of donation. The amount deducted can't reduce Idaho taxable income to less than zero. Any unused deduction can't be carried to another year.

LINE 10 IDAHO CAPITAL GAINS DEDUCTION

If you had capital gain net income from the sale of qualified Idaho property described below, you may be able to deduct 60% of the capital gain net income reported on federal Schedule D.

  1. Real property held for at least 12 months, or
  2. Tangible personal property used in a revenue-producingenterprise and held for at least 12 months. A revenue- producing enterprise means:
    1. Producing, assembling, fabricating, manufacturing or processing any agricultural, mineral or manufacturedproduct;
    2. Storing, warehousing, distributing or selling at wholesaleany products of agriculture, mining or manufacturing;
    3. Feeding livestock at a feedlot;
    4. Operating laboratories or other facilities for scientific,agricultural, animal husbandry or industrial research, development or testing.
  3. Cattle and horses held for at least 24 months, and otherlivestock used for breeding held for at least 12 months, if theowner received more than one-half of his gross income fromfarming or ranching in Idaho, or
  4. Timber held for at least 24 months.

NOTE: Gains from the sale of stocks and other intangiblesdon't qualify.

Complete Idaho Form CG to compute your capital gainsdeduction.

LINE 11 MILITARY PAY EARNED OUTSIDE OF IDAHO

If you are serving in the United States Army, Navy, MarineCorps, Air Force, or Coast Guard on active military duty that iscontinuous and uninterrupted for 120 days, your active dutymilitary wages for service outside of Idaho aren't subject toIdaho tax. The continuous 120 days don't have to be in the same tax year. Enter your nontaxable military wages.

Do not include military wages earned while stationed in Idaho. Your wage and tax statement (W-2) doesn't show this amountseparately and you may have to compute the amount of incomeearned outside of Idaho. You should see your unit of assignment or use your orders in making the computation. Attach a
copy of your worksheet.

National Guard or Reserve pay, including annual training pay, generally doesn't qualify as active duty pay unless you havebeen called into full-time duty for 120 days or more. If you are acommissioned officer of the Public Health Service or of the National Oceanic and Atmospheric Administration militarized by the President of the United States and attached to the armed forces, your active duty military wages earned outside Idahoqualify for this deduction. Enter these wages on line 11.

LINE 12 ADOPTION EXPENSES

If you adopt a child, you may deduct the expenses incurred inthe adoption. You may claim legal and medical expensesincurred up to a maximum of $3,000 per adoption. Travel expenses don't qualify. If the expenses are incurred in two ormore years, deduct the costs in the year paid until the $3,000limit has been met. The expenses related to an unsuccessfulattempt to adopt aren't deductible. If expenses were claimed ina year prior to such a determination, file an amended return toadd back any deduction claimed for the unsuccessful attempt.

LINE 13 IDAHO MEDICAL SAVINGS ACCOUNT CONTRIBUTIONS AND INTEREST

You may contribute up to $2,000 ($4,000 if married filing a jointreturn) to an Idaho medical savings account and deduct thecontribution. Deductible contributions don't include reimbursements that were redeposited into your Idaho medical savings account. Don't include amounts deducted on federal Form 1040.

An Idaho medical savings account is generally established with abank, savings and loan, or credit union. The account is established to pay eligible medical expenses of the account holder andthe account holder's dependents.

Interest earned on the account is included on line 13, but only ifincluded on line 9, Form 40. Add your qualifying contributions tothe interest earned on the account. Enter the name of the financial institution and your account number in the spacesprovided.

LINE 14 IDAHO COLLEGE SAVINGS PROGRAM

You may contribute up to $4,000 ($8,000 if married filing a jointreturn) per year to a qualified Idaho college savings program anddeduct the contribution. The account must be established with Upromise Investments, Inc. The account owner and beneficiarywill be designated at the time the account is established. The account owner will have the right to make withdrawals forpayment of higher education expenses for the beneficiary. The person that withdraws the funds must report the withdrawalamounts as income in accordance with Internal Revenue Code Section 529.

Additional information can be obtained at idsaves.org or bycalling (866) 433-2533.

LINE 15 MAINTAINING A HOME FOR AGED AND/OR DEVELOPMENTALLY DISABLED

You may deduct $1,000 for each family member, not includingyourself or your spouse, who is age 65 or older and for whom youmaintain a household and provide more than one-half of hissupport for the year.

You may deduct $1,000 for each family member, includingyourself and your spouse, who is developmentally disabled andfor whom you maintain a household and provide more than one- half of his support for the year.

No more than three deductions of $1,000 are allowed. If youclaim this deduction, you can't claim the $100 credit in Part E.

Developmental disability means a chronic disability that:

  1. Is attributable to an impairment such as:
    • Mental retardation
    • Cerebral palsy
    • Epilepsy
    • Autism
    • Other condition found to be closely related to, or similar to, one of these impairments; and
  2. Results in substantial functional limitation in three or more of the following areas of life activity:
    • Self-care
    • Receptive and expressive language
    • Learning
    • Mobility
    • Self-direction
    • Capacity for independent living
    • Economic self-sufficiency; and
  3. Reflects the need for a combination and sequence of special, interdisciplinary or generic care, treatment or other serviceswhich are of lifelong or extended duration and individuallyplanned and coordinated.

If the home was maintained for the family member for less than afull year, the deduction is allowed at the rate of $83.33 for eachmonth the home was maintained.

A family member is any person who meets the relationship test tobe claimed as a dependent on income tax returns. Refer to thefederal Form 1040 instructions for more information.

Maintaining a household means paying more than one-half theexpenses incurred for the benefit of all the household’s occupants. Social Security benefits aren't support provided by youbut must be included in the computation of total support provided. Some examples of expenses of maintaining a householdinclude: property taxes, mortgage interest, rent, utility charges, upkeep and repairs, property insurance and food consumed onthe premises.

LINE 16 IDAHO LOTTERY WINNINGS

You may deduct Idaho lottery prizes of less than $600 per prizeincluded in federal adjusted gross income on line 9, Form 40. You can't deduct lottery prizes from other states.

LINE 17 INCOME EARNED ON A RESERVATION BY AN AMERICAN INDIAN

American Indians who are enrolled members of a federally recognized tribe, who live and work on a reservation can deductall reservation sourced income received while living and workingon the reservation, if the income is included on line 9, Form 40. Income earned off the reservation can't be deducted. Income
earned on the reservation can't be deducted if you live off the reservation.

LINE 18 HEALTH INSURANCE PREMIUMS

Deduct premiums you paid for health insurance for yourself, yourspouse, and your dependents if those premiums haven't alreadybeen deducted or excluded from your income.

If you claimed a deduction for health insurance premiums onyour federal Form 1040, Schedule A, use the worksheet tocalculate the deduction allowed for health insurance premiums. The worksheet follows the priority that itemized deductionsfirst apply to health insurance premiums, then to long-termcare insurance.

IDAHO MEDICAL SAVINGS ACCOUNT. If you take money out of your Idaho medical savings account topay medical insurance premiums, no deduction is allowed. Since the health insurance costs are already deducted oraccounted for, they can't be deducted a second time.

SALARY REDUCTION PLANS. Premiums paid through a cafeteria plan or other salary-reductionarrangement can't be included in the Idaho deduction for healthinsurance costs. For example, if your health insurance paymentsare deducted from your pay check pretax, they don't qualify forthe deduction.

BUSINESS DEDUCTIONS. Premiums deducted as a business expense can't be included inthe Idaho deduction for health insurance costs since these
amounts are already deducted.

SOCIAL SECURITY MEDICARE A AND B . No deduction is allowed for the amount paid for employer- required Social Security Medicare A . This is the amount listed as a deduction on almost every federal Form W-2.

If you voluntarily enroll in Medicare B or Medicare D, or aren'tcovered under Social Security and voluntarily enroll in MedicareA, the premiums you paid may be deducted.

IDAHO STANDARD DEDUCTION. If you don't itemize deductions for Idaho income tax purposes, but instead use the Idaho standard deduction, you don't have toreduce your health insurance costs by any amount claimed as afederal itemized deduction.

FEDERAL ITEMIZED DEDUCTION LIMITATIONS. For federal purposes, the amount of medical expenses allowedas a deduction on the federal Form 1040, Schedule A, is required to be reduced by 7.5% of adjusted gross income. The following worksheet shows how the limitation of the 7.5% ofadjusted gross income required for federal purposes, affects theamount of health insurance costs deductible for Idaho purposes.

If you aren't itemizing deductions for Idaho, skip lines 1-6 andenter zeros on lines 8, 12, and 13.

HEALTH INSURANCE AND LONG-TERM CARE INSURANCE DEDUCTION LIMITATIONS

1. Amount claimed for health insurance costs on federal Form 1040, Schedule A ............ _________
2. Amount claimed for long-term care insuranceon federal Form 1040, Schedule A ....... _________
3. Additional medical expenses claimed onfederal Form 1040, Schedule A ....... _________
4. Total medical expenses. Add lines 1, 2 and 3. _________
5. Enter 7.5% of federal adjusted gross income ... _________
6. Medical expense deduction allowed on thefederal Form 1040, Schedule A. (Line 4 lessline 5. If less than zero, enter zero.) ....... _________

HEALTH INSURANCE

7. Enter the total paid for health insurance ........ _________
8. Portion of health insurance deduction allowed on federal Form 1040, Schedule A. Enter the lesser of line 1 or line 6.......... _________
9. Enter the total health insurance costs deducted elsewhere on the federal return ...... _________
10. Idaho health insurance deduction allowed.
Line 7 less lines 8 and 9. Enter this amount on Form 39R, line 18 .........		 _________

LONG-TERM CARE INSURANCE

11. Enter the total paid for long-term insurance ...... _________
12. Medical expense deduction not allocated tohealth insurance costs. Line 6 less line 1.
If less than zero, enter zero ..........		 _________
13. Portion of long-term care insurance deductionallowed on federal Form 1040, Schedule A.
Enter the lesser of line 2 or line 12 .......		 _________
14. Enter the total long-term care insurancecosts deducted elsewhere on the federal return. _________
15. Long term care insurance deduction allowed.
Line 11 less lines 13 and 14. Enter this amount on Form 39R, line 19 ........		 _________

LINE 19 LONG-TERM CARE INSURANCE

You may deduct the amount you paid in premiums for qualified long-term care insurance that aren't otherwise deducted oraccounted for. If you claimed a deduction for long-term care nsurance on your federal Form 1040, Schedule A, calculate thelong-term care insurance allowed as a deduction by using the worksheet in the instructions for line 18.

Qualified long-term care insurance includes any insurance policythat provides coverage for at least twelve consecutive months foryourself, your spouse, or your dependents for one or morenecessary diagnostic, preventive, therapeutic, rehabilitative, maintenance or personal care services, provided in a settingother than an acute care unit of a hospital. Group and individualannuities and life insurance policies that provide directly or thatsupplement long-term care insurance qualify. This includes a policy that provides for payment of benefits based upon cognitiveimpairment or loss of functional capacity.

Qualified long-term care insurance doesn't include any insurancepolicy that is offered primarily to provide coverage for:

  • Basic Medicare supplement,
  • Basic hospital expense,
  • Basic medical surgical expense,
  • Hospital confinement indemnity,
  • Major medical expense,
  • Disability income or related asset protection,
  • Accident only,
  • Specified disease or specified accident, or
  • Limited benefit health.

Life insurance policies that accelerate death benefits generallydon't qualify.

LINE 20 WORKER’S COMPENSATION INSURANCE

A self-employed individual may deduct the actual cost ofamounts paid for worker’s compensation insurance coverage inIdaho, if the cost isn't deducted elsewhere.

LINE 21 BONUS DEPRECIATION

If you are depreciating property for which you claimed the bonusdepreciation for federal purposes for property placed in servicebefore 2008:

  • Complete a separate federal Form 4562 or detailed computation for Idaho depreciation purposes as if the special depreciation allowance hadn't been claimed.
  • Compute the Idaho adjusted basis and any gains or lossesfrom the sale or exchange of the property using the Idahodepreciation amounts.
  • Enter the differences between the Idaho and federal depreciation amounts and gains and losses from sales or exchanges ofthe property on line 21. Don't enter any amounts for property placed in service after 2007.

LINE 22 OTHER SUBTRACTIONS

Identify any other subtraction to which you are entitled and claimthe amount on this line. Don't include income earned in another state as a subtraction.

Don't include foreign taxes as a subtraction, since they areclaimed as part of the Idaho itemized deduction, if allowable. See the instructions for Itemized or Standard Deductions.

LINE 23 TOTAL SUBTRACTIONS

Total your subtractions and enter the amount on line 12, Form 40.

PART C. RETIREMENT BENEFITS DEDUCTION

Complete the worksheet and enter the amount from line 6 on line8, Part B. See page 22 for qualified retirement benefits.

LINE 2 Enter the amount of retirement benefits you (and yourspouse) received under the Tier I Federal Railroad RetirementAct, Box 5 of your Forms RRB-1099.

Disability pension paid by the Federal Railroad Retirement Actmay not be included in Box 5 of your Form RRB-1099, if you areunder the minimum retirement age. Instead it may be includedon line 7 of Form 1040 as wages.

LINE 3 Enter the amount of retirement benefits you (and yourspouse) received under the Federal Social Security Act, Box 5 ofyour Forms SSA-1099. If you or your spouse received Canadian Social Security benefits that are included in your federal taxable income, include those amounts received.

PART D. CREDIT FOR INCOME TAX PAID TO OTHER STATES

When the same income is taxed by both Idaho and anotherstate, you may be entitled to a credit for tax paid to the other state. Use this section to compute the credit. You must attach a copy of the other state’s income tax return and Idaho Form 39Rto your income tax return. If your S corporation or partnershippaid income tax to another state, attach a copy of your Schedule K-1. If credit applies to more than one state, use a separateForm 39R for each state.

Examples of income that may be taxed by both Idaho andanother state include:

  • Wages earned in another state that has an income tax, such as Oregon or Utah, while living in Idaho.
  • Income from a business or profession earned in another state that has an income tax, while a resident of Idaho.

LINE 1 Enter the tax shown on line 22, Form 40.

LINE 2 Enter the total portion of federal adjusted gross incomederived in the other state, modified to reflect Idaho additions and subtractions. In computing the income derived in the other state, you must reverse any adjustments to federal taxable income allowed by the other state that aren't applicable to Idaho. If you reported your income derived in the other state by filing an:

  • individual return, enter your adjusted gross income from theother state restated to a basis comparable to Idaho adjustedincome. For example, if the other state taxes interest receivedfrom U.S. obligations, deduct this amount from the other state'sadjusted gross income as Idaho doesn't tax this interest.
  • S corporation or partnership composite or group return, enteryour pro rata share of the S corporation or partnership incomederived in the other state.

LINE 3 Enter your Idaho adjusted income from line 13, Form 40.

LINE 4 Divide line 2 by line 3. Round to four digits to the right ofthe decimal point. For example .66666 is rounded to .6667 andshould be entered as 66.67%. The percentage can't exceed100%.

LINE 6 Enter the other state’s tax due from its tax table or rate schedule less its income tax credits. If your income derived inthe other state was reported on a composite or group return filedby an S corporation or partnership, enter your pro rata share ofthe tax paid by the S corporation or partnership less your prorata share of the income tax credits. Income tax credits are those credits that relate to income tax. An example of a creditthat isn't an income tax credit is a special fuels or gasoline taxcredit or refund.

LINE 7 Your allowable credit for tax paid to other states is thesmaller of line 5 or line 6. Enter this amount on line 24 of Form 40.

PART E. MAINTAINING A HOME FOR A FAMILY MEMBER AGE 65 OR OLDER OR A FAMILY MEMBER WITH A DEVELOPMENTAL DISABILITY

If you didn't claim the $1,000 deduction on line 15 of Part B, youmay claim a $100 credit for maintaining a home for an immediatefamily member age 65 or over not including yourself or yourspouse, or a family member with a developmental disability, including yourself and your spouse. Refer to the instructions for line 15, Part B. If the home was maintained for the familymember less than a full year, the credit is allowed at the rate of$8.33 for each month the home was maintained.

You may claim this credit if your gross income is less than thefiling requirement. File Form 40 and attach Form 39R to your return.

Only residents, including Idaho residents on active military dutyoutside Idaho, may claim this credit.

LINES 1 and 2 Answer the two questions. If you answer yes toeither question, you qualify.

LINE 3 Enter the name, Social Security number, relationship, and date of birth of your family member(s) for whom you maintain a home and provide more than one-half of their support. If the claim is for a family member with a developmental disability, check the box.

LINE 4 Enter the total on line 46, Form 40.

 

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