Idaho Tax Form 40 - Idaho Individual Income Tax Return Instructions

General Instructions

WHAT'S NEW FOR 2008

NEW FEDERAL LAW The "Housing Assistance Tax Act of 2008" (Public Law 110289) was signed into law by President Bush on July 30, 2008. New provisions for tax year 2008 allow non-itemizers an additional standard deduction for real property taxes up to $500 ($1,000 for joint filers).

At the time of this printing Idaho had not conformed to these new provisions. The Idaho legislature will convene in January 2009 and consider conformity with the new IRC.

GROCERY CREDIT All residents may be eligible to receive the grocery credit even if gross income is below the filing requirement.

The grocery credit has increased to $30 per exemption if your taxable income is more than $1,000, and $50 per exemption if your taxable income is $1,000 or less.

You may claim an additional $20 if you or your spouse are age 65 or older on 12/31/2008.

An individual doesn't qualify for the credit for any month or part of a month for which he:

• wasn't a resident of Idaho;
• received assistance from the federal food stamp program;
• was incarcerated; or
• lived illegally in the United States.

DONATING YOUR GROCERY CREDIT You may make an irrevocable donation of your entire grocery credit to the Cooperative Welfare fund.

If you or your spouse are age 65 or older on 12/31/2008 and qualify for the credit, but aren't required to file an income tax return, you can claim the credit on Form 24.

MEMBERS OF THE ARMED FORCES A member of the United States Armed Forces who is domiciled in Idaho is allowed the credit. If you live in Idaho but are a nonresident under the Servicemembers Civil Relief Act, you aren't allowed the grocery credit.

IDAHO CONFORMS TO INTERNAL REVENUE CODE (IRC) Idaho conforms to the federal changes made to the IRC by the "Economic Stimulus Act of 2008." These include the following:

• Bonus first-year depreciation provisions found in IRC Section 168(k) for property placed in service in 2008.
  • Idaho depreciation, adjusted basis, and gains or losses from the sale or exchange of property will be the same as for federal.
  • You can't claim the Idaho investment tax credit on the cost of the property you are allowed a deduction as bonus first-year depreciation.
• An increase in the IRC Section 179 election to expense the cost of certain assets.
• An increase in the IRC Section 280F limitations on "luxury" auto depreciation.

Idaho also conforms to other changes made to the IRC during 2007.

FORM CCV The credit card payment voucher has been discontinued.

SAVE A STAMP – FILE ONLINE!

File your return online to get:

• Faster refunds (7 to 14 days vs. 6 to 10 weeks for paper returns.)
• Fewer errors.
• Confirmation that your return was received.

To e-file:

• Visit our Web site at tax.idaho.gov to find free e-file services for eligible taxpayers.
• Find commercial tax preparation software for a fee.
• Ask your tax preparer to e-file your return.

WHICH FORM TO USE

You must use Form 40 if you are a:

• Resident, or
• Resident in the military. See page 4.

You must use Form 39R if you file a Form 40 and claim any additions, subtractions, or certain credits. Use Form 44 for business credits.

You must use Form 43 if you or your spouse are a:

• Nonresident, or
• Part-year resident, or
• Nonresident alien for federal purposes and are required to file an income tax return for Idaho.

You must use Form 39NR if you file a Form 43 and claim any additions, subtractions or certain credits. Use Form 44 for business credits.

GENERAL INFORMATION

INFORMATION AND FORMS If you need information or assistance, call or visit a TaxCommission office listed in this booklet.

Forms are available at Tax Commission offices or may beobtained:

• On the Web at tax.idaho.gov
• By calling (208) 334-7660 in the Boise area or (800) 972-7660

You may use photocopies of these tax forms. Your copy mustbe legible.

FILING REQUIREMENTS

Resident If you are required to file a federal income tax return, you mustfile an Idaho return. If you are filing a federal income tax returnonly to pay self-employment tax and aren't otherwise required tofile a federal income tax return, you aren't required to file anIdaho income tax return.

The filing requirement is based on gross income as shown onthe following schedule. Gross income is defined on page 4. When using this schedule, don't include Social Security benefitsas gross income unless you are married filing a separate returnand lived with your spouse at any time during 2008.

STATUS	GROSS INCOME
MARRIED:
filing separate returns	$ 3,500
filing jointly, both spouses under 65	$ 17,900
filing jointly, one spouse 65 or older	$ 18,950
filing jointly, both spouses 65 or older	$ 20,000
HEAD OF HOUSEHOLD:
under 65	$ 11,500
65 or older	$ 12,850
SINGLE:
under 65	$ 8,950
65 or older	$ 10,300
QUALIFYING WIDOW(ER) WITH DEPENDENT CHILD:
under 65	$ 14,400
65 or older	$ 15,450
DEPENDENT CLAIMED ON SOMEONE ELSE'S RETURN: Single dependents. Were you either age 65 or older or blind? No. You must file a return if any of the following apply: Your unearned income was over $900. Your earned income was over $5,450. Your gross income was more than the larger of: $900, or Your earned income (up to $5,150) plus $300. Yes. You must file a return if any of the following apply: Your earned income was over $6,800 ($8,150 if 65 orolder and blind). Your unearned income was over $2,250 ($3,600 if 65 orolder and blind). Your gross income was more than: The larger of PLUS This amount: $900, or Your earned income (up to $5,150) plus $300 } $1,350 ($2,700 if 65 or older or blind) Married dependents. Were you either age ? No. You must file a return if any of the following apply: Your gross income was at least $5 and your spouse filesa separate return and itemizes. Your unearned income was over $900. Your earned income was over $5,450. Your gross income was more than the larger of: $900, or Your earned income (up to $5,150) plus $300 Yes. You must file a return if any of the following apply: Your earned income was over $6,500 ($7,550 if 65 orolder and blind). Your unearned income was over $1,950 ($3,000 if 65 orolder and blind). Your gross income was at least $5 and your spouse filesa separate return and itemizes. Your gross income was more than: The larger of PLUS This amount: $900, or Your earned income (up to $5,150) plus $300 } $1,050 ($2,100 if 65 or older or blind)

Part-year Resident/Nonresident

If you are a part-year resident, you are required to file an Idaho income tax return if your gross income from all sources while a resident and your gross income from Idaho sources while a nonresident total more than $2,500.

If you are a nonresident, you are required to file an Idaho income tax return if your gross income from Idaho sources was morethan $2,500.

AMENDED RETURNS

Use Form 40 or 43 to amend your return. Check the amended return box at the top of the form. Enter the applicable reason(s) for amending, as listed below. Complete the entire form and schedules using the corrected amounts.

1. Federal Audit.
2. Net Operating Loss Carryback - Attach Form 56 or a schedule showing the application of the loss.
3. Federal Amended - Attach a complete copy of your federal return.
4. Other - Attach an explanation.

If you are amending Form 40EZ, use Form 40.

AMERICAN INDIANS

If you are an enrolled member of a federally recognized tribe, and live and work on a reservation, all reservation sourced income received while living and working on the reservation isexempt from Idaho taxation. If you have no other income, youaren't required to file.

If you have other income in an amount that meets the federalfiling requirement, you must file an Idaho return. For specificinstructions, see Form 39R or Form 39NR.

ATTACHMENTS

Attach legible copies of Form(s) W-2, 1099, and otherinformation forms that show Idaho withholding to the front of your return. A complete copy of your federal return must beattached to Form 40 or Form 43. If you are claiming creditfor taxes paid to another state, you must attach Idaho Form39R or 39NR and a copy of the other state's income tax return. If the credit applies to more than one state, use aseparate Form 39R or 39NR for each state.

AUDITS

An audit is a review of a return to make sure it was preparedaccording to tax law. You will be contacted if your return is to beaudited. The auditor will ask to see your records and comparethem with your return. You may present your records yourself orhave someone represent you or come with you. Any change toyour return will be explained. Question anything you don'tunderstand.

Federal Audit If your federal taxable income or tax credits change because of afederal audit, you must send written notice to the Tax Commission within 60 days of the final federal determination. You must include copies of all schedules supplied by the Internal RevenueService.

If you owe additional Idaho tax and don't send written noticewithin 60 days of the final federal determination, a 5% negligencepenalty will be imposed. Interest applies on any tax due.

If the final federal determination results in an Idaho refund, youmust file an amended Idaho income tax return with the written notice. See Amended Returns above. If the statute of limitations is closed, you have one year from the date of the final federaldetermination to file for the refund.

BONUS DEPRECIATION

FOR PROPERTY PLACED IN SERVICE PRIOR TO 2008 If you are depreciating property for which you claimed the bonusdepreciation for federal purposes:

• 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 the bonus depreciation line on Form 39Ror 39NR.

FOR PROPERTY PLACED IN SERVICE AFTER 2007 Idaho conforms to the federal bonus depreciation provisions. The amounts you use for federal will also be used for Idaho. No additional forms or computations are needed for Idaho.

COMMUNITY PROPERTY

Because Idaho is a community property state, each residentspouse has a one-half interest in the earnings of the otherresident spouse during the portion of the year they were married. If married for only a part of the year, the community incomeincludes ONLY the income earned during the time the couplewas married. When filing separate returns, the communityincome, withholding and deductions of both resident spousesmust be divided equally between husband and wife. If you havea written agreement between spouses regarding the separationof assets and income, it must be attached to your tax return.

Idaho law affects your federal return in the same manner. For more details, see federal Publication 555, Federal Tax Information on Community Property. If you were a resident of Idaho foronly a portion of the year, Idaho law applies to that portion of theyear you were a resident. Income is identified as community orseparate income based on the laws of the state in which therecipient is a resident. In the case of real property, the law of the state in which the property is located will apply.

Community property laws don't apply when the spouses havelived apart for the entire year, no part of the income earned byone spouse has been transferred to the other spouse, and thespouses don't file a joint income tax return.

Income, withholding and deductions received or paid afterdivorce are separate property and must be reported on the returnof the person to whom it applies.

If you divorced during 2008 or are filing separately from yourspouse, attach a schedule showing how community propertyincome and deductions were divided. See the Allocation Worksheet in federal Publication 555.

DECEDENT’S TAX RETURN

If a taxpayer dies before filing his return, the return must be filedby the taxpayer's spouse or personal representative. A personalrepresentative can be an executor, administrator, or anyone whois in charge of the deceased taxpayer's property.

If your spouse died in 2008 and you didn't remarry in 2008, youcan file a joint return. You can also file a joint return if yourspouse died in 2009 before filing a 2008 return. A joint returnshould show your spouse's 2008 income before death and yourincome for all of 2008. Write "FILING AS SURVIVING SPOUSE" on the line where the decedent would have signed the return. Ifsomeone else is the personal representative, he must also signthe return.

If a refund is due, attach federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Form 1310 isn't required when a surviving spouse files a joint return with thedecedent or a personal representative files for the decedent.

ESTIMATED PAYMENTS

Idaho doesn't require estimated payments for personal income tax. If you wish to make a voluntary estimated payment, fileForm 51 with your payment.

EXTENSION OF TIME FOR FILING

If you can't file your Idaho state income taxes by April 15, youmay be eligible to get an automatic six-month extension withoutfiling a form.

In order to qualify, you need to pay either an estimated 80percent of your current year's tax liability or 100 percent of whatyou paid for state income taxes the prior year. You can avoid a penalty for late filing, but will be charged interest on theremaining tax until it's paid. Complete the worksheet on IdahoForm 51, Estimated Payment of Idaho Income Tax, to see if youmeet the extension requirements.

If you need to make a payment to avoid a penalty, you can mailForm 51 with your check or money order. Form 51 is available in the Idaho income tax booklet or on the Web site.

If you qualify for an extension to file your Idaho return, you mustsend the return and any payment by October 15, 2009.

FILING STATUS

Your Idaho filing status must be the same as the filing statusused on your federal return. For example, if you file a jointfederal return, you must also file a joint Idaho return.

FILING YOUR RETURN

When To File

You must file your return and pay any income tax due:

• On or before April 15, 2009, for the calendar year 2008, or
• On or before the 15th day of the fourth month following theclose of the fiscal year, if you file on a fiscal year basis.

Where To File

Mail the return and payment to:

IDAHO STATE TAX COMMISSION
PO BOX 56
BOISE ID 83756-0056

If you are sending your return using a delivery service thatrequires a physical address, use the following:

IDAHO STATE TAX COMMISSION
800 PARK BLVD PLAZA IV
BOISE ID 83712-7742

INCOME

An Idaho resident is taxed on all income, including income fromoutside the state. A nonresident of Idaho is taxed only onincome from Idaho sources. An Idaho part-year resident is taxedon all income received while living in Idaho plus any incomereceived from Idaho sources when not living in Idaho.

GROSS INCOME

Gross income means all income you received in the form ofmoney, goods, property, and services that isn't exempt from tax. Gross income is measured before subtracting allowable deductions. Gross income includes, but isn't limited to:

• All income from wages, salaries, tips, interest and dividendsthat isn't exempt from tax
• Self-employment income before expenses
• Farm income before expenses
• Rental income before expenses
• Shareholders and partners include their share of the grossincome from S corporations and partnerships
• Unemployment compensation
• Certain scholarship and fellowship grants
• Gains derived from sales of property
• Pensions and annuities

Scholarships used for tuition, fees, supplies, books, and equipment required for courses leading to a degree aren't included ingross income.

INTEREST

Interest applies on delinquent tax from the original due date ofthe return until the tax is paid at the rate of 5% per year (rateeffective for 2009.)

MILITARY PERSONNEL

Idaho law generally follows federal law regarding which type ofmilitary pay (active duty, disability, reserve and retirement) is taxable.

The residency of a qualified servicemember is presumed to bethat member's military home of record.

NATIONAL GUARD MEMBERS CALLED TO ACTIVE DUTY IN A COMBAT ZONE

Idaho follows federal law and Internal Revenue Code to provideincome tax relief for servicemembers on active duty in combat zones. Below is a summary of how these laws affect IdahoNational Guard members.

• All tax filing deadlines are extended for at least 180 daysafter your last day in a combat zone.
• No interest or penalty will accrue for nonpayment ofindividual income taxes while you are in a combat zone.
• If you are an enlisted soldier or warrant officer, you don't owetax on military pay received while in a combat zone. If you area commissioned officer, the monthly exclusion is capped at thehighest enlisted pay, plus any hostile fire or imminent dangerpay received.
• This federal law doesn't cover business tax returns, employment taxes, or sales/use tax obligations.
• You must write "COMBAT ZONE" and the date of deployment in red on top of the tax return you are filing.

For information see our Web site at tax.idaho.gov, or call us toll free at (800) 972-7660 or 334-7660 in the Boise area.

Idaho resident on active duty stationed in Idaho If Idaho was your military home of record and you were on activeduty stationed in Idaho, all of your military wages and all nonmilitary income, regardless of the source, are subject to Idaho tax. File Form 40.

Idaho resident on active duty stationed outside of Idaho

• You joined the armed forces while a resident of Idaho andIdaho is your military home of record; and
• You were on active duty for 120 or more consecutive days; and
• You were stationed outside of Idaho for all or part of the year.

You must report all of your income to Idaho. However, onlymilitary wages you receive while stationed in Idaho and allnonmilitary income, regardless of the source, is subject to Idaho tax. File Form 40 if you are single, or if you are married and yourspouse is also a resident of Idaho.

File Form 43 if you are married and your spouse is a nonresident, part-year resident, or military nonresident of Idaho. Check the "Idaho Resident on Active Military Duty" residency status boxfor yourself. Check the applicable residency status box for your spouse.

Under the Servicemembers Civil Relief Act, a servicemember will neither lose nor acquire a residence or domicile with regards tohis income tax as a result of being absent or present in a statedue to his military orders. A qualified servicemember is not aresident of or domiciled in Idaho solely as a result of beingstationed in Idaho.

A servicemember includes any member of the uniformedservices such as:

• A member of the armed forces which includes a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard on activeduty. It would also include a member of the National Guard who has been called to active service by the President of theUnited States or the Secretary of Defense of the United Statesfor a period of more than thirty (30) consecutive days, forpurposes of responding to a national emergency declared bythe President and supported by federal funds.
• A member of the commissioned corps of the National Oceanicand Atmospheric Administration in active service; and
• A member of the commissioned corps of the Public HealthService in active service. The safe harbor exception to being a resident of Idaho explainedin the "Special-case Idaho Residents" does not apply to aqualified servicemember.

Nonresident on active duty stationed in Idaho If your military home of record isn't Idaho and you were on activeduty stationed in Idaho for all or part of the year, Idaho doesn'ttax your military income. Nonmilitary income from Idaho sourcesis subject to Idaho tax. File Form 43 if your gross income fromIdaho sources exceeds $2,500. The instructions for Form 43 begin on page 13.

NET OPERATING LOSS (NOL)

An NOL is the excess of business deductions (computed withcertain modifications) over total gross income in a particular tax year. Use Form 56 to compute your loss and application of theloss, or a schedule showing the application of the loss.

The NOL generally must be carried back to the two preceding years. The carryback is limited to a maximum of $100,000. Anyremaining loss may be carried forward until used, but no longerthan 20 years.

• You may elect to forego the two-year carryback provision andcarry the loss forward up to 20 years.
• This election must be made before the due date, includingextensions, of the loss year return and can't be revoked.
• To make the election, check the box on line 13, Form 40, or line 29, Form 43, or attach a copy of the federal NOL election, or attach a statement to the loss year tax return clearlyindicating that you elect to forego the carryback. Include yourname, address, Social Security number, and the amount of loss.

NONRESIDENT ALIENS

Taxpayers who are nonresident aliens for federal purposes andwho are required to file an income tax return for Idaho must fileusing Form 43. Nonresident aliens for federal purposes arenonresidents for Idaho income tax purposes.

PAYMENTS

Make your check, cashier's check, or money order payable to theIdaho State Tax Commission. Be sure to write your SocialSecurity number on it and attach it to your return.

To pay by credit card, debit card or e-check, visit our Web site attax.idaho.gov; or call (800) 972-7660.

PENALTIES

Penalties may be imposed on the tax due as follows:

• 0.5% per month or fraction of a month to a maximum of 25% for failure to pay the tax due (if return is filed)
• 2% per month or fraction of a month for failure to meet theextension criteria (the return must be filed by the extended duedate, and the taxes paid by the earlier of the date the return isfiled or the extended due date)
• 5% per month or fraction of a month to a maximum of 25% forfailure to file the return timely
• 5% for negligence or disregard of rules
• 10% for substantial understatement of tax
• 50% for filing a false or fraudulent return The minimum penalty is $10.

RECORDKEEPING

You are required by law to keep records that will enable you toprepare a complete and accurate income tax return. Althoughthe law doesn't require any special form of records, you mustretain all receipts, canceled checks, and other evidence to prove

amounts claimed as deductions. Keep all supporting records forincome or deductions until the statute of limitations for the return expires. Usually this is three years from the due date or the datethe return was filed. In property transactions, the basis of new orreplacement property may be determined by the basis of the oldproperty. Keep these records as long as they are needed todetermine the basis of the original or replacement property.

REFUNDS WHEN NOT REQUIRED TO FILE

If you aren't required to file an Idaho return, no tax is due even ifthe calculation shows taxable income. If you are filing only toreceive a refund of amounts withheld, you don't pay the $10permanent building fund tax. Write "NRF" (Not Required to File) on the lines for "Tax from tables or rate schedule" and "Permanent building fund tax."

REFUND SEIZURE

Under state law, the Tax Commission may retain state incometax refunds to satisfy other outstanding tax debts. The Department of Health and Welfare and the Department of Commerceand Labor may seize all or part of your income tax refund tooffset debts you may owe these agencies. Also, refunds may beseized to satisfy bankruptcy claims, sheriffs' garnishments, ordebts owed to the Internal Revenue Service. Additionally, theTax Commission may seize federal income tax refunds to offsetIdaho income tax liabilities.

The agency or party seizing the refund is required to send younotice of the action. Questions regarding a refund seizureshould be directed to the agency or party that initiated the claimfor seizure.

ROUNDING

The amounts on your return must be rounded to the whole dollar. An amount less than 50 cents is reduced to the whole dollar. Amounts of 50 cents or more are increased to the next whole dollar.

RESIDENCY

Are you a resident, a nonresident, or a part-year resident? The following will help you decide:

• You are an Idaho resident, even though you live outside Idaho, if the following are true:
  • You think of Idaho as your permanent home.
  • Idaho is the center of your financial, social, and family life.
  • Idaho is the place you intend to return to when you are away.
• You are also an Idaho resident if the following are true:
  • You maintained a home in Idaho the entire year.
  • You spent more than 270 days in Idaho during the tax year.
• You are a nonresident if your permanent home is outside ofIdaho all year.
• You are a part-year resident if you moved into or out of Idahoduring the tax year. You are still a resident if:
  • You temporarily moved outside of Idaho, or
  • You moved back to Idaho after a temporary absence.

SPECIAL-CASE IDAHO RESIDENTS

You are considered a nonresident if all of the following are true:

• You are an Idaho resident who lived outside of Idaho for at least 445 days in a 15-month period.
• After satisfying the 15-month period, you spent less than 60days in Idaho during the year.
• You didn't have a personal residence in Idaho for yourself oryour family during any part of 2008.
• You didn't claim Idaho as your federal tax home.
• You weren't employed on the staff of a U.S. senator or representative.
• You didn't hold an elective or appointive office of the U.S. Government other than the armed forces or a career appointment in the U.S. Foreign Service.

This exception to being a resident of Idaho doesn't apply to aqualified servicemember.

SIGNATURES

You must sign your return. Your spouse also must sign if you filea joint return. If your return is prepared by a paid preparer, hemust enter his name, address, and identification number. If a taxpayer is deceased or can't sign his return, an authorizedperson may sign the return indicating his status or relationship. Write “FILING AS SURVIVING SPOUSE” or “unable to sign” inthe signature space. If a taxpayer signs with an “X”, his markmust be witnessed.

TAX PREPARER CONTACT BOX

This box applies only if you paid a tax preparer to complete your return. If you check the box, you are authorizing the TaxCommission to discuss your return with the paid prepareridentified on the return.

You are also authorizing the paid preparer to:

• Give the Tax Commission any information that is missing fromyour return, and
• Call the Tax Commission for information about the processingof your return or the status of your refund or payments.

You are not authorizing the paid preparer to receive any refundcheck, bind you to anything including any additional tax liability, or otherwise represent you before the Tax Commission.

This authorization is valid for up to 180 days from the date theTax Commission receives the return. If you want the TaxCommission to contact you rather than your preparer, leave thebox blank.

TAX YEAR AND ACCOUNTING METHOD

The tax year and accounting method used on your Idaho returnmust match those used on your federal return.

Line Instructions

Instructions are for lines not fully explained on the form. General information instructions beginning on page 2 also apply to this form.

GROCERY CREDIT REFUND ONLY

If you're not required to file an income tax return, but are filing Form 40 to receive a grocery credit refund, you don't need toattach a copy of a federal return.

You must complete Form 40 as follows:

• Complete the top of the form through line 6d, exemptions anddependents.
• Skip lines 7 and 8.
• Write "NRF" on line 9.
• Skip lines 10 through 13.
• Complete line 14a if you or your spouse are age 65 or older.
• Skip lines 14b through 34.
• Cross through the $10 on line 35, Permanent Building Fund, and write "NRF."
• Skip lines 36 through 44.
• Enter your grocery credit amount on line 45 using the grocerycredit worksheet on page 10 for Idaho taxable income of$1,000 or less.
• Complete applicable lines 46 through 57.
• Skip lines 58 through 61.
• Complete the bottom of Form 40 below line 61.

HEADING

Write your name, address, and Social Security number (SSN) in the spaces provided. If filing a joint return, write the SSN of bothyou and your spouse.

If you don't have an SSN, contact the Social Security Administration, U.S. Postal Service or the Internal Revenue Service to obtain an application, Form SS-5. File this form with the local office of the Social Security Administration. Apply earlyenough to make sure you receive a number by April 15. If your return is due before you receive your number, file the return andwrite “Applied for” in the space for the number. The Tax Commission will contact you for the number.

Be sure that your return and Form(s) W-2 show the correct SSN. An error in your SSN will delay your refund.

AMENDED RETURN

Form 40 can be used as an original return or as an amended return.

If you are filing this form as an amended return, check the box at the top of the form. Enter the applicable reason(s) for amending,

as listed below. Complete the entire form and schedules using the corrected amounts.

1. Federal Audit.
2. Net Operating Loss Carryback - Attach Form 56 or a schedule showing the application of the loss.
3. Federal Amended - Attach a complete copy of your federal return.
4. Other - Attach an explanation.

NEXT YEAR’S FORMS

If you need forms mailed to you next year, check the box below your Social Security number.

LINES 1 THROUGH 5 FILING STATUS

Check the box indicating the same filing status shown on your federal return. Refer to federal instructions for further information on filing status.

LINE 6 EXEMPTIONS

Exemptions claimed on your Idaho return must match the exemptions claimed on your federal return.

Line 6a and 6b. Yourself and Spouse. CAUTION: If you canbe claimed as a dependent on another person’s tax return, suchas a parent’s return, leave the box "yourself" blank. Instead, check the box on line 14c.

If you can't be claimed as a dependent on another person’s return, you may claim one exemption for yourself. Enter "1" in thebox for “Yourself.” If you are married filing a joint return, you canalso claim an exemption for your spouse. Enter "1" in the box for “Spouse.” If your spouse died during 2008 and you are filing ajoint return, you may claim the exemption for your spouse.

Line 6c. Dependents. List dependents claimed on your federal return. If you have more than four dependents, continue onForm 39R, Part F. Enter the total number of dependents in thebox.

Line 6d. Total Exemptions. Add lines 6a through 6c.

LINES 7-8 IDAHO ELECTION CAMPAIGN FUND

The Idaho Legislature established this fund to provide financing for qualified political parties. If you want $1 of your income tax togo to the Idaho Election Campaign Fund, check the box beside the party of your choice. If you are filing a joint return, yourspouse may also designate $1 to the same party or to a different party. If you check “No specific party,” the amount will bedivided among the parties by a formula prescribed by law. Thiswon't increase your tax or decrease your refund.

If you are filing an amended return, you must check the sameboxes as checked on the original return.

LINE 9 FEDERAL ADJUSTED GROSS INCOME

Enter the adjusted gross income reported on your federal return: Line 37, Form 1040; Line 21, Form 1040A; or Line 4, Form 1040EZ.

LINE 13 IDAHO ELECTION TO FOREGO NET OPERATING LOSS (NOL) CARRYBACK

Check the box on line 13 if you elect under Section 63-3022(c), Idaho Code, to forego the Idaho carryback period for an NOL. If you check this box, you don't need to attach a separatestatement electing to forego the Idaho carryback period.

TAX COMPUTATION

LINE 14a AGE 65 OR OLDER

If you are 65 or older, check the box for “Yourself.” If you arefiling a joint return and your spouse is 65 or older, check the boxfor “Spouse.” Age is determined as of December 31. However, if your 65th birthday was on January 1, 2009, you may consideryourself 65 on December 31, 2008. The boxes you check mustmatch your federal return.

LINE 14b BLIND

The box for “Yourself” must be checked if you are blind. If youare filing a joint return and your spouse is blind, check the boxfor “Spouse.” Blindness is determined as of December 31. The boxes you check must match your federal return.

LINE 14c CLAIMED DEPENDENT

If your parents or someone else can claim you as a dependenton their tax return, check this box. You may itemize deductionsor use the standard deduction. Complete the followingworksheet to determine your standard deduction.

LINES 15-18 ITEMIZED OR STANDARD DEDUCTIONS

Most people can find their standard deduction by looking at theinstructions to the left of line 18, Form 40. However, if youcheck any boxes on lines 14a through 14c, use the followingworksheet to figure your standard deduction. You may useeither your federal itemized deductions or standard deduction, whichever benefits you more. (For exceptions, see YOU MUSTITEMIZE.)

Your itemized deductions are the same as those used on yourfederal Form 1040. Idaho requires that all state or local incomeor general sales taxes shown on federal Schedule A be subtracted from your total itemized amount before you use thisfigure to reduce your income. Because of this addback, it maybe more beneficial to itemize for federal purposes, but use thestandard deduction for Idaho.

If you or your spouse are nonresident aliens for federal purposes and aren't from India, your standard deduction is zero. If you are nonresident aliens from India use the standard deduction indicated for your filing status.

If an itemized deduction allowable for federal income tax purposes is reduced for the mortgage interest credit or theforeign tax credit, the amount that would have been allowed if the federal credit hadn't been claimed is allowed as an itemized deduction.

If line 17 is more than line 18, you should use your itemizeddeductions on line 17. If line 18 is more than line 17, you shoulduse your standard deduction on line 18.

YOU MUST ITEMIZE if you are married, filing a separate return(filing status 3) and your spouse itemizes. You must itemize if you had dual status as a nonresident alien for part of 2008 andduring the rest of the year you were a resident alien or a U.S. citizen.

However, you don't have to itemize if you file a joint return withyour spouse who was a U.S. citizen or resident at the end of 2008and you and your spouse agree to be taxed on your combinedworldwide income.

STANDARD DEDUCTION WORKSHEET

Use this worksheet if someone can claim you, or your spouse iffiling jointly, as a dependent, or you or your spouse were bornbefore January 2, 1944, or were blind.

1. Enter the amount shown below for your filing status., Single or married filing separately, enter $5,450. Married filing jointly or Qualifying widow(er), enter $10,900. Head of household, enter $8,000 .	________
2. Can you be claimed as a dependent? No. Enter the amount from line 1 on line 4. Skip line 3. Yes. Go to line 3.	________
3. Is your earned income* more than $600? Yes. Add $300 to your earned income. Enter the total. No. Enter $900	________
4. Enter the smaller of line 1 or line 3. If born after January 1, 1944, and not blind, enter this amounton line 6. Otherwise, go to line 5	________
5. If born before January 2, 1944, or blind, multiplythe total number of boxes checked on Form 40, lines 14a and 14b, by $1,050 ($1,350 if single or head of household)..	________
6. Add lines 4 and 5. Enter the total here and on Form 40, line 18	________

*Earned Income includes wages, salaries, tips, professionalfees, and other compensation received for personal services youperformed. It also includes any amount received as a scholarshipthat you must include in your income. Generally, your earnedincome is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any on line 27.

FEDERAL LIMITATIONS ON ITEMIZED DEDUCTIONS. Some of your itemized deductions may be phased out if your federaladjusted gross income is more than $159,950 ($79,975 if you aremarried filing separately). Since this figure is the same as thelimit on your federal itemized deductions, use the amountreported on your federal return.

Since state income or general sales taxes are affected by thelimitation, your state income or general sales tax addback (line16) must be reduced if your itemized deductions are limited. Adjust your state income or general sales tax addback as follows:

1. Itemized deductions after federal limitation (federal Schedule A, line 29)	________
2. Itemized deductions prior to federal limitation (federal Schedule A, lines 4, 9, 15, 19, 20, 27, and 28)	________
3. Divide line 1 by line 2. Round to four digits tothe right of the decimal point. (.66666 = .6667 = 66.67%) (Can't exceed 100%) %	______%
4. State and local income or general sales taxesreported on federal Schedule A.	________
5. Multiply line 4 by line 3. Enter this amount on line 16	________

LINE 20 EXEMPTIONS

Multiply $3,500 by the total number of exemptions entered online 6d. If your federal adjusted gross income on line 9 is morethan the amount shown below for your filing status, use theamount allowed on your federal Form 1040, line 42.

• $119,975 Married filing separate return
• $239,950 Married filing joint return or qualifying widow(er)
• $159,950 Single
• $199,950 Head of household

Your Idaho exemption amount should be the same as yourfederal exemption amount.

LINE 22 TAX

Enter the tax on this line. If line 21 is less than $100,000, use the tax tables on page 35. If line 21 is $100,000 or more, use the schedules on page 46. Be sure you use the correct columnin the tax table or the correct schedule for your filing status. See the example at the beginning of the tax table.

If you don't meet the filing requirement (see page 2) and arefiling only to receive a refund of withheld taxes, write “NRF” (NotRequired to File) on this line.

CREDITS

LINE 24 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 Form 39R to compute the credit. You must attach a copy of the other state’s income tax return and Form 39R. If credit applies to more than one state, use a separate Form 39Rfor each state. See instructions, page 25.

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

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

LINE 25 CREDIT FOR CONTRIBUTIONS TO IDAHO EDUCATIONAL ENTITIES

If you donated cash or goods to qualified educational entities, you may claim a tax credit.

If you claimed or earned the credit for qualifying new employees, enter the amount computed on line 5, Part III, Form 55. Otherwise, the credit is limited to the smallest of:

• one-half of the amount donated,
• 20% of the tax on line 23,
• $100 ($200 on a joint return),
• the tax on line 23 less the amount on line 24.

A qualified educational entity includes:

• a nonprofit corporation, fund, foundation, research park, trust, or association organized and operated exclusively for thebenefit of Idaho colleges and universities
• a nonprofit, private or public Idaho school (elementary, secondary or higher education) or its foundation
• Idaho education public broadcast system foundations
• the Idaho State Historical Society or its foundation
• an Idaho public library or its foundation
• an Idaho library district or its foundation
• an Idaho public or private nonprofit museum
• the Idaho Commission for Libraries

LINE 26 CREDIT FOR CONTRIBUTIONS TO IDAHO YOUTH AND REHABILITATION FACILITIES

If you donated cash or goods to a qualified center for independent living, to a youth or rehabilitation facility or its foundation, orto a nonprofit substance abuse center licensed by the IdahoDepartment of Health and Welfare, you may claim a tax credit.

If you claimed or earned the credit for qualifying new employees, enter the amount computed on line 9, Part III, Form 55. Otherwise, the credit is limited to the smallest of:

• one-half of the amount donated,
• 20% of the tax on line 23,
• $100 ($200 on a joint return),
• the tax on line 23 less the amounts on lines 24 and 25.

The qualified youth or rehabilitation facilities and theirfoundations are:

• Anchor House, Coeur d’Alene
• The Arc, Inc., Boise
• The Children's Home Society of Idaho, Inc., Boise
• Children's Village, Inc., Coeur d’Alene
• Dawn Enterprises, Inc., Blackfoot
• Development Workshop, Inc., Idaho Falls
• Gem Youth Services, Inc., Emmett
• High Reachers, Inc., Mountain Home
• Hope House, Inc., Nampa
• Idaho Drug Free Youth, Inc., Coeur d’Alene
• Idaho Elks Rehabilitation Hospital, Inc., Boise
• Idaho Youth Ranch
• Kinderhaven, Sandpoint
• Learning Lab, Inc., Boise
• Magic Valley Rehabilitation Services, Inc., Twin Falls
• New Day Products, Inc., Pocatello
• Northwest (North Idaho) Children’s Home, Inc.
• Opportunities Unlimited, Inc., Lewiston
• Panhandle Special Needs, Inc., Sandpoint
• Project P.A.T.C.H., Planned Assistance for Troubled Children
• Project Safe Place
• Shepherd's Home, Inc., McCall
• Transitional Employment Services for the Handicapped, Coeur d’Alene
• Walker Center, Gooding
• Western Idaho Training Co., Inc., Caldwell
• Women's and Children's Alliance
• Winchester Occupational Workshop, Winchester

The following are the qualified centers for independent living:

• Disability Action Center Northwest, Moscow and Coeur d'Alene
• Living Independence Network Corporation, Boise and TwinFalls
• Living Independently For Everyone, Inc., Blackfoot, Idaho Fallsand Pocatello

LINE 27 CREDIT FOR LIVE ORGAN DONATION EXPENSES

A living taxpayer who donates a qualified organ for transplantingin another individual may be able to claim a credit up to $5,000for expenses related to the donation.

In order to claim the credit, one or more of the following organsmust be donated:

• Human bone marrow
• Any part of:
  • an intestine
  • a kidney
  • a liver
  • a lung
  • a pancreas

Qualified expenses are those incurred by the taxpayer ordependent for travel, lodging or lost wages and are not reimbursed to the taxpayer by any person. The expenses must bedirectly related to the live organ donation by the taxpayer or adependent of the taxpayer.

Any unused credit may be carried over five years.

LINE 28 TOTAL BUSINESS INCOME TAX CREDITS

Enter the total allowed business income tax credits from Form 44, Part I, line 12. See page 33 for specific instructions. Attach Form 44.

OTHER TAXES

LINE 31 FUELS TAX DUE

If you buy gasoline, aircraft fuel, or special fuels (diesel, propane, natural gas) without paying the fuels tax and later use this fuel inlicensed vehicles or aircraft, fuels tax is due. Add the amounts on lines 3 and 4, Section IV, Form 75, and enter the total. Attach Form 75.

LINE 32 SALES/USE TAX DUE

If you made purchases during the year without paying sales tax, you must report use tax on such purchases. Examples includemagazine subscriptions, out-of-state catalog purchases, merchandise purchased over the Internet, book and record clubs, purchases in a state where no sales tax is charged, etc. Multiplythe total amount of such purchases by 6% (.06). If you computed use tax on Form 75, add it to the use tax on other purchases and enter the total on line 32.

If you have a sales or use tax account, don't report your sales oruse tax on this line, but continue to report the tax on thesepurchases on your sales and use tax returns.

LINE 33 TOTAL TAX FROM RECAPTURE OF INCOME TAX CREDITS

If you have claimed Idaho tax credits that cease to qualify, youmust compute the tax credit recapture. Enter the total tax from recapture of income tax credits from Form 44, Part II, line 7. See page 34 for specific instructions. Attach Form 44.

LINE 34 TAX FROM RECAPTURE OF QUALIFIED INVESTMENT EXEMPTION (QIE)

If you have claimed Idaho exemption of property taxes fromproperty that ceases to qualify, you must compute therecapture of the qualified investment exemption. Attach Form 49ER.

LINE 35 PERMANENT BUILDING FUND

You are required to pay the $10 permanent building fund tax ifyou are required to file an Idaho income tax return. See FILING REQUIREMENTS on page 2.

You aren't required to pay the $10 permanent building fund tax if:

• your gross income was less than the amount specified for yourfiling status. Draw a line through the $10 and enter "NRF" (NotRequired to File).
• you were receiving Idaho public assistance payments at theend of the tax year. Check the box on this line and draw a linethrough the $10. Food stamps and WIC payments don't qualifyas Idaho public assistance.
• you or your spouse were legally blind at the end of the tax year. Draw a line through the $10.

DONATIONS

The donations on lines 37 through 42 are voluntary and willeither reduce your refund or increase your tax due. Your choice to donate is irrevocable; you can't get a refund later. Thesedonations may be itemized as charitable contribution deductionson your 2009 income tax return. If you have questions regardingyour donation(s), you may contact the agencies listed.

If you are filing an amended return, your donations can't be lessthan the amounts on the original return.

LINE 37 NONGAME WILDLIFE CONSERVATION FUND

Contributions are used to ensure the conservation of non game wildlife and their habitat in Idaho, to promote greater appreciation of wildlife, and to increase opportunities to view and enjoy“watchable” wildlife. Donations are used for a variety of projectsincluding research on rare animals in an effort to better manage them so they don’t become threatened or endangered, construction of nest boxes and platforms to provide more homes for wildlife, educational programs and community projects, development of wildlife viewing sites throughout the state, informational brochures, and a nongame wildlife leaflet seriesavailable to the public and used by teachers. Contact theDepartment of Fish and Game at (208) 334-2920.

LINE 38 CHILDREN’S TRUST FUND/CHILD ABUSEPREVENTION

Contributions are used to protect our children, Idaho's mostvaluable resource. The trust fund board, appointed by thegovernor and representing every region of our state, reviewsapplications annually and awards grants to grassroots, community-based child abuse prevention programs. Funded programs include parent education, voluntary home visitation forfirst-time parents, public awareness of the devastatingconsequences of child abuse, and child abuse prevention andchild safety education in schools. Contact the Children's Trust Fund/Child Abuse Prevention at (208) 386-9317.

LINE 39 SPECIAL OLYMPICS IDAHO

Contributions provide support for year-round sports training and competition for children and adults with developmentaldisabilities in Idaho. Through sports training and competition, Special Olympics Idaho teaches life skills suchas dedication, perseverance and focus, while in stilling confidence. With these skills, 50% of Special Olympicsathletes are employed while only 10%-14% of the generalpopulation of people with developmental disabilities holdjobs. Donations to this fund will be used to buy sportsequipment, uniforms, food, lodging and transportationservices for competitions, as well as health screenings, outreach programs and family support systems for adults andchildren with developmental disabilities. Contact SpecialOlympics Idaho at (208) 323-0482 or visit www.idso.org.

LINE 40 IDAHO GUARD AND RESERVE FAMILY SUPPORT FUND

Contributions are used to assist military Reservists and theirfamilies. The Idaho Guard and Reserve Family SupportFund (IGRFSF) helps members of the Idaho Air NationalGuard, the Idaho Army National Guard, the Air Force Reserve, the Army Reserve, the Navy & Marine Corps Reserve, and the Coast Guard Reserve, along with their families, whenduty calls. The Fund acts as an emergency relief fund andoperates as a 501(c)(3) nonprofit corporation. Contact the Idaho Guard and Reserve Family Support Fund, Inc., at (208) 422-5799. 9

LINE 41 AMERICAN RED CROSS OF GREATER IDAHO FUND

Contributions provide food, shelter, clothing, and other helpfor disaster victims. Also, funds supply items such asbedding and cots in areas around the state to prepare forlarge scale emergencies. Donations also support the ArmedForces Emergency Services communications program, helping active duty military and their loved ones in Idahocommunicate during family emergencies. Contact theAmerican Red Cross of Greater Idaho at (800) 853-2570.

LINE 42 VETERANS SUPPORT FUND

Contributions help provide specialized medical/physicaltherapy equipment for the three State Veterans Homes, support veterans organizations throughout the state, assisthomeless veterans programs in Idaho, promote and marketthe activities of the Office of Veterans Advocacy, develop anongoing program for nurse recruitment and retention, supplement training for state and county service officers, andcreate an Idaho division of Veterans Services scholarshipprogram to help veterans fund their education. Contact the Idaho Division of Veterans Services at (208) 246-8770.

PAYMENTS AND OTHER CREDITS

LINE 45 GROCERY CREDIT

If you're a resident of Idaho, you may claim a credit for eachpersonal exemption for which a deduction is permitted andclaimed on your Idaho income tax return, provided the individualclaimed as an exemption is a resident of Idaho. If your parentsor someone else can claim you as a dependent on their return, you can't claim this credit on your return.

The credit is $30 per exemption if your taxable income on line 21is more than $1,000. If your taxable income on line 21 is $1,000or less, the credit is $50 per exemption.

You may claim an additional $20 if you are age 65 or older on12/31/2008 and are a resident of Idaho. Also, if your spouse isage 65 or older and is a resident of Idaho, you may claim anadditional $20.

An individual doesn't qualify for the credit for any month or part ofa month for which he:

• received assistance from the federal food stamp program;
• was incarcerated; or
• lived illegally in the United States

MEMBERS OF THE ARMED FORCES A member of the United States Armed Forces who is domiciled in Idaho is allowed the credit. If you live in Idaho but are a nonresident under the Servicemembers Civil Relief Act, you aren'tallowed the grocery credit.

A spouse or dependent of a nonresident military person stationedin Idaho may be an Idaho resident or part-year resident. The domicile of a dependent child is presumed to be that of thenonmilitary spouse.

Complete the worksheet that corresponds to your Idaho taxableincome, line 21. Enter the total computed grocery credit on line45, Computed Amount. See the following instructions to donateyour credit. If you aren't donating your credit, enter the computed amount in the column for line 45.

GROCERY CREDIT WORKSHEET

Use this worksheet when Idaho taxable income, line 21 is $1,000 or less.

Yourself:
1. Number of qualified months ...	________
2. If 65 or older, multiply line 1 by $5.83. If qualified for the entire year, enter $70 If under 65, multiply line 1 by $4.17. If qualified for the entire year, enter $50	________
Spouse (if joint return):
3. Number of qualified months	________
4. If 65 or older, multiply line 3 by $5.83. If qualified for the entire year, enter $70 If under 65, multiply line 3 by $4.17. If qualified for the entire year, enter $50	________
Resident dependents claimed on line 6c:
5. Enter $50 for each dependent who qualifies forthe entire year. If they qualify for only part year, compute as follows: Number of qualified months ____ X $4.17 Number of qualified months ____ X $4.17 Number of qualified months ____ X $4.17 Number of qualified months ____ X $4.17 (If you have more than four dependents, use additional paper tocompute.)	________
Total credit allowed:
6. Add amounts on lines 2, 4 and 5. Enter total on line 45, Computed Amount ...	________

GROCERY CREDIT WORKSHEET

Use this worksheet when Idaho taxable income, line 21 is more than $1,000.

Yourself:
1. Number of qualified months ...	________
2. If 65 or older, multiply line 1 by $4.17. If qualified for the entire year, enter $50 If under 65, multiply line 1 by $2.50. If qualified for the entire year, enter $30	________
Spouse (if joint return):
3. Number of qualified months	________
4. If 65 or older, multiply line 3 by $4.17. If qualified for the entire year, enter $50 If under 65, multiply line 3 by $2.50. If qualified for the entire year, enter $30	________
Resident dependents claimed on line 6c:
5. Enter $30 for each dependent who qualifies forthe entire year. If they qualify for only part year, compute as follows: Number of qualified months ____ X $2.50 Number of qualified months ____ X $2.50 Number of qualified months ____ X $2.50 Number of qualified months ____ X $2.50 (If you have more than four dependents, use additional paper tocompute.)	________
Total credit allowed:
6. Add amounts on lines 2, 4 and 5. Enter total on line 45, Computed Amount ...	________

DONATING YOUR GROCERY CREDIT You may donate your entire grocery credit to the Cooperative Welfare Fund. The Cooperative Welfare Fund is establishedunder Idaho Title 56, Public Assistance and Welfare. It is a trust fund in the state treasury, and all money in the fund is appropriated for public assistance and welfare purposes. The election is made by checking the box on line 45 and entering zero (0) in the column for line 45. The election is irrevocable and may not bechanged on an amended return.

NOTE: If you or your spouse are age 65 or older and qualifyfor the credit but aren't required to file an Idaho income taxreturn, you can claim the credit on Form 24. You can get thisform from any Tax Commission office or our Web site attax.idaho.gov. The refund claim is due on or before April 15, 2009.

LINE 46 MAINTAINING A HOME FOR A FAMILY MEMBER AGE 65 OR OLDER OR A FAMILY MEMBER WITH A DEVELOPMENTAL DISABILITY

If you maintained a household for an immediate familymember(s) age 65 or older or with a developmental disability, and didn't claim a deduction of $1,000 per person on Form 39R, Part B, line 15, you may claim a tax credit of $100 per person(up to $300).

Complete and attach Idaho Form 39R. See instructions, page25. You may claim this credit even if your gross income is lessthan the filing requirement.

LINE 47 FUELS TAX REFUND

If you buy special fuels (diesel, propane, natural gas) with Idahotax included and use this fuel for heating or in off-highwayequipment, you may be entitled to a refund of the Idaho specialfuels tax you paid. Enter the amount from line 2, Section IV, Form 75. Attach Form 75. Heating fuel is generally purchasedwithout paying the tax.

If you buy gasoline and use it in unlicensed equipment orauxiliary engines, you may be entitled to a refund of the Idahogasoline tax you paid. Enter the amount from line 1, Section IV, Form 75. Attach Form 75.

LINE 48 IDAHO INCOME TAX WITHHELD

Enter the total amount of Idaho income tax withheld as shown on your withholding statements. Attach legible state copies ofForm(s) W-2, 1099, and other information forms that showIdaho withholding.

DON'T claim credit for tax withheld for other states or federal tax withheld. DON'T include Form(s) W-2 from other tax years orwrite on or change the amounts on your Form(s) W-2.

LINE 49 FORM 51 PAYMENT(S)

Enter the total payments you made with Form(s) 51. Include theamount of overpayment applied from your 2007 return.

TAX DUE OR REFUND

LINE 52 PENALTY AND INTEREST

Penalty: If you file a return after the due date or fail to pay therequired amount by the due date, a penalty may be due. To avoid paying any penalty, you must:

• Pay by the original due date at least 80% of the tax due on thereturn or 100% of the total tax reported last year, and
• File the return by the extended due date and pay the tax dueby the earlier of the date the return is filed or the extende ddue date.

If you pay at least 80% of the tax due on the return or 100% ofthe total tax reported last year by the original due date, but fail tofile the return by the extended due date or pay the remaining taxby the earlier of the date the return is filed or the extended duedate, the following penalties will apply:

• If the return is filed on or before the extended due date, a 0.5% per month late payment penalty will be computed on tax duefrom the date the return is filed to the date of payment, or
• If the return is filed after the extended due date, a 5% permonth late filing penalty will be computed on tax due from theextended due date to the earlier of the date the return is filed or the date the tax is paid, plus a 0.5% per month late paymentpenalty will be computed on tax due from the date the return isfiled to the date the tax is paid, if the tax is paid after the returnis filed.

If you don't pay at least 80% of the tax due on the return or 100% of the total tax reported last year by the original due date thefollowing penalties will apply unless the payment required tosatisfy the extension criteria is $50 or less:

• If the return is filed by the original due date, a 0.5% per monthlate payment penalty will be computed on tax due from the datethe return is filed to the date of payment.
• If the return is filed on or before the extended due date, a 2% per month extension penalty will be computed on tax due fromthe original due date to the earlier of the date the tax is paid ordate return is filed, plus a 0.5% per month late payment penaltywill be computed on tax due from the date the return is filed tothe date the tax is paid, if the tax is paid after the return is filed.
• If the return is filed after the extended due date but the tax is paid on or before the extended due date, a 2% per monthextension penalty will be computed on tax due from the originaldue date to the date the tax is paid.
• If the return is filed and the tax is paid after the extended duedate, the maximum 25% penalty will apply.

The minimum penalty is $10. The maximum penalty is 25% oftax due.

Idaho Medical Savings Account: If you make an Idahomedical savings account withdrawal that is subject to tax and youare under age 59 1/2, the withdrawal is subject to penalty. The penalty is 10% of the amount withdrawn. Check the box and enter the amount here.

Interest: Interest is charged on the amount of tax due, line 51, from the original due date until paid. The rate for 2009 is 5%.

LINE 53 TOTAL DUE

Enter the amount you owe, including penalty and interest, on thisline.

Don't send cash. Payments of less than $1 aren't required. A $20 charge will be imposed on all returned checks.

Make your check, cashier's check, or money order payable to theIdaho State Tax Commission. Be sure to write your SocialSecurity number on it and attach it to your return.

To pay by credit card, debit card or e-check, visit our Web site attax.idaho.gov.

LINE 55 REFUND

Enter the amount of your overpayment shown on line 54 that youwant refunded to you. Refunds of less than $1 won't be issued. No refund will be issued unless a return claiming overpayment oftax is filed within three years after the due date for filing. Refunds will be reduced by unpaid Idaho tax liabilities, and may be seizedfor unpaid liabilities owed to other state agencies.

LINE 56 ESTIMATED TAX

If you are filing an original return, subtract line 55 from line 54. The amount you enter will be applied to your 2009 tax and won'tbe refunded.

LINE 57 DIRECT DEPOSIT

Complete line 57 if you want us to deposit your refunddirectly into your bank account instead of mailing you acheck.

Contact your bank to make sure your deposit will beaccepted and that you have the correct routing andaccount numbers.

Enter your nine-digit routing number. The routing numbermust begin with 01 through 12, or 21 through 32.

Enter the account number of the account into which youwant your refund deposited. The account number can be upto 17 characters (both numbers and letters). Don't include hyphens, spaces, or special symbols. Enter the number left to right and leave any unused boxes blank.

Check the appropriate box for account type. Check either checking or savings, but not both.

The check example indicates where the proper bankinginformation is located. You are responsible for the accuracyof this information.

If your financial institution rejects your request for directdeposit, you will receive a check by mail instead.

AMENDED RETURN ONLY

Complete lines 58 through 61 only if you are filing this returnas an amended return.

LINE 58 TOTAL TAX DUE OR OVERPAYMENT ON THIS RETURN

If the total tax due shown on line 53 is greater than zero, enter this amount on line 58. The amount from line 53 should be entered as a positive amount.

If line 53 is zero, enter the amount of overpayment that isshown on line 54 on line 58. The amount from line 54 should be entered as a negative amount.