Heads-Up: Jobless benefits, pandemic grants and bonuses are taxable
Did you receive money from the state due to the COVID-19 pandemic? As you start preparing your 2020 Idaho income tax return, please be aware that you may have received taxable income this year for which state tax wasn't withheld, even if federal taxes were. That includes but isn't limited to:
Idaho unemployment insurance benefits
Pandemic Unemployment Assistance (PUA) for self-employed workers, independent contractors, and gig workers
Rebound Idaho grants for small businesses and the self-employed
Idaho's Return-to-Work bonuses for employees idled as a result of the pandemic who returned to work from April 20 through July 15
If you're concerned about having an income tax bill in 2021, you can take one of the following steps now:
Make estimated payments using the Tax Commission's Quick Pay service at tax.idaho.gov/quickpay. You can find additional payment options at tax.idaho.gov/epay.
Start setting aside money each month to help cover any tax you may need to pay next April.
Please contact your financial or tax advisor with any questions about your 2020 taxable income. (Note: Federal economic impact funding — sometimes referred to as “stimulus” payments — isn't taxable income.)
For other questions:
Call us at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.
Email us at taxrep@tax.idaho.gov.