Taxpayers can now start filing their 2025 Idaho income tax returns to claim all the new conformity deductions. The Tax Commission has updated its instructions to reflect the conformity changes. The agency also notified tax software providers of the changes so they can update their systems.
The updated instructions for Idaho Form 40, Individual Income Tax Return, and Idaho Form 43, Part-Year Resident and Nonresident Income Tax Return, show how to claim the enhanced senior deduction and the deductions for tips from wages, car loan interest, and overtime compensation. For tax year 2025, the Tax Commission hasn’t added any new lines to the tax forms. Taxpayers will claim those deductions using current lines.
If filing a Form 40, taxpayers will follow the instructions for line 18 to claim their deductions. If taxpayers use Form 43, they’ll follow the instructions for line 40. Form 43 filers will also fill out and keep a new worksheet, Idaho Worksheet 1-A, to help them determine their deductions.
The Tax Commission has updated Form 40 and Form 43 to reflect the larger standard deduction amounts. Anyone who’s already filed using the old standard deduction amounts will automatically get the larger standard deduction.
Taxpayers who file before March 10 can expect their refund by the end of May. Those filing on or after that date can expect their refund within the Tax Commission’s normal timeframes: 7-8 weeks for e-filed returns and 10-11 weeks for paper returns.
Taxpayers who have issues with e-filing their returns should contact their tax software provider.
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.
The deadline to file 2025 income taxes is Wednesday, April 15.
