Question
Idaho State Tax on $10,200 Federally-Exempted Unemployment Income (American Rescue Plan)
Idaho taxes all unemployment income in 2020. Form 1040 has been fixed to exclude the first $10,200 in unemployment income for federal tax purposes. Idaho Forms 40/39R have not been fixed to add the $10,200 back to income in Idaho.
Is there a fix in process for Idaho Form 40 to automatically populate Form 39R with a $10,200 addition to income for the $10,200 exclusion on an individual's 1040? I had to make the income addition manually with a statement, and then override the tax computation using state tax tables to complete the return. However, I'm now left with a state return with an override that will likely flag as an issue for e-filing.
Software update in the works for Idaho?
