State & Local Tax Impacts of COVID-19 for Idaho – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: Jun 08, 2021
SALT GOV COVID TW - 1

Information current as of April 30, 2021.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Idaho

  • Idaho enacted legislation making one-time federal relief monies provided to Idaho businesses in 2020 deductible by income taxpayers. However, any excluded emergency rental assistance program funds must be added to Idaho taxable income. The deductible amounts include funds received or loans forgiven under the Coronavirus Aid, Relief, and Economic Security Act; forgiven Paycheck Protection Program loans; and Economic Injury Disaster Loan advance funds.
    • Idaho H.B. 251, Laws 2021, effective retroactive to January 1, 2021.
  • Idaho extended the 2020 Idaho income tax filing and payment deadlines from April 15, 2021, to May 17, 2021, to match the extended federal deadline. Idaho’s extension applies to all taxpayers subject to Idaho’s individual income tax, i.e., individuals, trusts, and estates, regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by May 17. The state also extended the deadline to apply for property tax relief programs from April 15 to May 17.
    • Idaho State Tax Commission, Resolution 21-01; March 25, 2021.
  • Idaho clarified that unemployment insurance benefits are taxable and taxpayers must include them while computing their Idaho income when filing 2020 personal income tax returns. Any unemployment benefits deducted on federal Form 1040, Schedule 1, line 8, should be added back to the Idaho return. However, rebound Idaho grants are taxable by the federal government but not by Idaho.
    • Idaho State Tax Commission, Notice; March 24, 2021.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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