Taxpayers can now start filing their 2025 Idaho income tax returns to claim all the new conformity deductions. The Tax Commission has updated its instructions to reflect the conformity changes. The agency also notified tax software providers of the changes so they can update their systems.

“The Tax Commission has updated Form 40 and Form 43 to reflect the larger standard deduction amounts. Anyone who’s already filed using the old standard deduction amounts will automatically get the larger standard deduction.”

For more details, visit Idaho DOR. 

Program Changes Lacerte (Version 46.0312) available later today

These new input fields and diagnostics have been added to address the following filing scenarios with the state.

New Input Fields - Screen 3, Miscellaneous Info:

• 1=apply conformity to original return, 2=amended return for conformity (code 561)
• 1=apply updated Idaho standard deduction only (previously filed return) (code 562)

New Diagnostics:

• Idaho now conforms to the federal One Big Beautiful Act (OBBBA). To apply these provisions please enter either 1=apply conformity to original return, or 2=amended return for conformity (ref. #61921)
• Idaho now conforms to the federal One Big Beautiful Act (OBBBA). The Standard Deduction is being claimed on this return. Return already filed - Idaho will automatically adjust a return that has already been filed that was claiming the standard deduction and refund any amount based on the updated standard deduction amount. If no other OBBBA provisions apply to the return, then there is no need to file an amended return. If you need to file an amended return due to other provisions of the OBBBA, then check this box to update your standard deduction amount, then go to the Amended return screen and amend Idaho, and then enter 2 for 2=amended return for conformity on the Federal Miscellaneous screen. Return not filed - If you have not filed your return then this diagnostic will no longer generate when 1=apply conformity to original return is entered. (ref. #61920)

Filing Scenarios:

Scenario One: The Idaho return has not been filed yet:

When filing a new return, enter 1 for, "1=apply conformity to original return, 2=amend return for conformity" (Screen 3, code 561). This will apply all new conformity updates to the return.

Scenario Two: The return has already been filed and the standard deduction was claimed (No other OB3 provisions for the return):

"Anyone who’s already filed using the old standard deduction amounts will automatically get the larger standard deduction." ID DOR

No action is required. Idaho will automatically adjust the return to reflect the increased standard deduction amount.

To view the return with the updated standard deduction:

1. Make a copy of the originally filed return, to avoid making any changes
2. Open the copied file
3. In Screen 3, Miscellaneous Info, enter a '1' in field 1=apply updated Idaho standard deduction only (previously filed return) (code 562)

This will update the return to reflect the new calculations using the updated states updated standard deduction.

Scenario Three: The return has already been filed, claiming the standard deduction and additional OB3 provisions impact the return:

In this scenario, follow these steps to adjust the return to reflect the original return Idaho has on record before marking for amendment to include the additional OB3 details.

1. Make a copy of the originally filed return, to retain the original transmission and e-file status details
2. Open the copied file
3. In Screen 3, Miscellaneous Info, enter a '1' in field 1=apply updated Idaho standard deduction only (previously filed return) (code 562)
4. In Screen 59, Amended Return, mark to amend the Idaho Return. The correct overpayment or tax paid will be reflected in the originally reported amounts. (codes 406 and 407)
5. In Screen 3, Miscellaneous Info, enter a '2' in the field 1=apply conformity to original return, 2=amend return for conformity (code 561)

The remainder of the OB3 provisions will be applied to the return.

Note: Idaho Worksheet 1-A will generate when Form 43 is applicable and Federal Sch A-1 is applicable

Update: Idaho Worksheet 1-A is tentatively scheduled to be available with release 46.0324, March 24, 2026.