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Idaho State Tax on $10,200 Federally-Exempted Unemployment Income (American Rescue Plan)

rgtesq
Level 1

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?

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1 Comment 1
qbteachmt
Level 15

The software has not been updated for all State changes, and some States are in the process right now (as MD did back in Feb) for conformity, and in this example, MD hasn't even released their own updated form.

You know ID legislature is out on a covid break for 2 weeks. I would simply wait a bit.

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