Idaho Form 40 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 40, the Idaho Individual Income Tax Return. If you don't live in Idaho, not to worry, we'll be tackling the other 34 states soon enough.
The State Tax Commission of Idaho has created a basic form that's two pages long and 61 lines deep. So residents should feel good about the Form 40's simplicity and ease. Seriously, filling out this cream puff of a form shouldn't take longer than an hour. This form is a solid 7 on the user-friendly meter.
You know the drill, begin by filling in your name, address, social security number, and filing status. Then on Line 6 list your exemptions and dependents, just be sure to include all your dependents social security numbers.
On Line 7 enter your adjusted gross income, you can find the number on your federal forms. If you need to make any additions, include Form 39R, and enter the total on Line 8. Then put the sum of Lines 7 and 8 on Line 9. If you need to make any subtractions to your AGI, put that amount on Line10. Now subtract Line 10 from Line 9 to get your total adjusted income, which then goes on Line 11.
If any of those Line 12 boxes apply, check them off before proceeding. If you itemize your deductions, enter the amount from your Federal Schedule A on Line 13. Also include any sate and local income taxes from the same Schedule A on Line 14. Next subtract Line 14 from Line 13 and enter that total on Line 15.
If you choose to go the route of the standard deduction Line 16 is for you. Simply enter $5,800 as a single, $8,500 if you're a head of household, or $11,600 if you're married. Now subtract the larger of Line 15 or Line 16 from Line 11. This is child's play.
On Line 18 multiply $3,700 by the number of exemptions you claimed in box 6d. Then subtract Line 18 from Line 17 to get your taxable income, which then goes on Line 19. When you're ready, look up the tax table on page 35 of the instruction booklet to see how much tax you should have paid to Idaho. When you have that amount carry it forward to Line 21 on page 2. Would you believe you're more than halfway done already?
If you paid income tax to other states, attach a Form 39R, and a copy of those other state returns. If you gave up a live organ, you get a credit for that expense. Nope, I'm not kidding about the organ donation.
If you had any business credits, include them on Line 24. Now add Lines 22 through 24 to get your total credits, which go on Line 25. Finish up the credits section by subtracting Line 25 from Line 21 and enter that total on Line 26.
If you incurred a fuel tax, include Form 75 and write the amount on Line 27. If you ordered anything on the internet and weren't taxed for it, record that amount on Line 28. Line 29 is a recapture of income tax credit's, include Form 44 if it applies.
If you incurred an investment exemption, attach Form 49ER and record that amount on Line 30. If you're receiving Idaho public assistance payments, check the box on Line 31. Then add lines 27 through 31 to get your total tax, which then goes on Line 32.
If you donated to any of the listed charities, work through lines 33 through 40. If you're eligible list your grocery credit on Line 42. Know you have the option to donate this credit, just let the state know before proceeding. If you're keeping up a home for a senior or disabled family member, attach Form 39R and record your expenses on Line 43.
Refunds for gas and other special fuels get recorded on Line 44, just be sure to attach Form 75 if you received either one. On Line 45 enter your Idaho withholdings, which you can find it on your W-2 or 1099. If you had a Form 51 payment and applied an amount of your return to last year, include that on Line 46. On line 47 declare any pass-through income tax withheld, and make sure to include Form ID K-1. Also declare Hire One Act credit for new employees credit if you qualify on Line 48. Now add lines 42 through 48 to your total payments and credits, and enter the total on Line 49.
If Line 41 is more than Line 49, you still owe, subtract 49 from 41 (entering the total on Line 50) to see how much. If you've incurred any penalties/interest record those amounts on Line 52. Then add Lines 50 and 51 to get your total tax due the sum of which goes on Line 52.
But if Line 41 is less then Line 49 you overpaid. To find out how much, subtract Lines 41 and 51 from Line 49. When you've got that number record it on Line 53. On Line 54 jot down the amount of Line 53 you want refunded to you, and if you want to make any estimated tax payments, include that amount on Line 55. Who doesn't love a refund?
Line 56 is where you record your direct deposit information, just be sure to state the type of account and your banks routing and account numbers. If you needed to file an amended return work through boxes 57 through 60 now. All that's left is to sign, date, and write down a phone number. If you had a tax pro help you, make sure they do the same.
Look, unless you're some radical libertarian who thinks they can get away with not paying taxes, you are going to have to fill out a state tax form. And the Idaho department of Revenue makes it easy for you to do so. One hour with this thing and you'll be back tending to some of the best farmland in this world. And the rest of us are mighty appreciative for your efforts.
