Idaho Credit for Taxes Paid to Another State
The State of Idaho allows taxpayers to claim a credit for income taxes paid to another state when both Idaho and the other state tax the same income. This credit helps prevent double taxation and is calculated using Form 39R.
How to Claim the Credit
- Use Form 39R to calculate the credit amount.
- Include a complete copy of the other state’s income tax return with your Idaho return.
- If you are claiming credits for multiple states, use a separate Form 39R for each state.
- The allowable credit is the smaller of the amounts shown on lines 5 or 6 of Form 39R.
- Enter the credit amount on Form 40, line 21.
- The credit cannot exceed the Idaho tax due shown on Form 40, line 20.
Required Documentation
- Attach a copy of the other state’s income tax return.
- If your S corporation or partnership paid income tax to another state on your behalf, include a copy of Form ID K-1 or the corresponding schedule.
Important Notes
- This credit applies only when income is taxed by both Idaho and another state.
- For detailed instructions, refer to the Idaho Individual Income Tax guidelines, specifically page 51 for Part C — Credit for Income Tax Paid to Other States.
Source:
Individual Income Tax guidelines
Form 39R
Form 40
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.