Now that Governor Little has signed the conformity bill, House Bill 559, the Idaho State Tax Commission is developing a plan for taxpayers to claim the new conformity deductions. The plan will also include details on how the more than 158,000 taxpayers who’ve already filed their 2025 income taxes can take advantage of the new deductions. The Tax Commission will provide more guidance over the next few weeks.
House Bill 559 conforms to most of the provisions in the federal One Big Beautiful Bill Act. This includes the larger standard deduction amounts, the enhanced senior deduction, and the deductions for qualified tips from wages, car loan interest, and overtime compensation.
To implement the bill:
- The Tax Commission will need to update its forms, instructions, and systems to incorporate the conformity changes before it can process tax returns.
- Tax software companies will need to update their systems, and the Tax Commission must test and verify those updates.
- Refunds will be delayed beyond normal timeframes as the Tax Commission makes these updates.
“The changes to forms and systems normally take nine months for the Tax Commission to complete,” said Chairman Jeff McCray. “However, it’s a priority for us to make the updates and provide a plan for taxpayers to follow as soon as possible.”
Those who are concerned about the timing of the changes and the tax due date can get an automatic filing extension by making sure they’ve paid enough of their tax by April 15. To qualify they should either pay 80% of the estimated tax they owe for 2025 or 100% of the total tax reported on their 2024 income tax return (if they filed a return). They can use the worksheet on Idaho Form 51 – Voucher, Estimated Payment of Individual Income Tax, to determine any needed payment.
Visit tax.idaho.gov to get tax forms, make payments, and find tax help. You can also get help by calling the tax commission toll free at 1 (800) 972-7660. Please note that the Tax Commission’s call center hours have changed due to staffing limitations. The call center is open Monday through Friday from 8 a.m. to 5 p.m. MST (7 a.m. to 4 p.m. PST), except on the 2nd Wednesday of the month when the phones open at 9:30 a.m. MST.
The deadline to file 2025 income taxes is Wednesday, April 15.
