BOISE, ID — The Idaho State Tax Commission is working to update its tax forms and systems after Governor Brad Little signed House Bill 559 into law, bringing Idaho into conformity with several federal tax provisions.
According to the Tax Commission, the new law conforms to most provisions of the federal “One Big Beautiful Bill Act,” including larger standard deduction amounts, an enhanced senior deduction, and deductions for qualified tips from wages, car loan interest, and overtime compensation.
The commission is developing a plan for taxpayers to claim the new conformity deductions, including guidance for more than 158,000 taxpayers who have already filed their 2025 Idaho income tax returns. Additional guidance is expected in the coming weeks.
To implement the changes, the Tax Commission must update forms, instructions, and internal systems before it can process returns under the new law. Tax software companies will also need to update their systems, and those updates must be tested and verified by the state. As a result, refunds will be delayed beyond normal timeframes.
“The changes to forms and systems normally take nine months for the Tax Commission to complete,” Chairman Jeff McCray said in a statement. “However, it’s a priority for us to make the updates and provide a plan for taxpayers to follow as soon as possible.”
Taxpayers concerned about meeting the April 15 deadline can request an automatic filing extension by ensuring they have paid enough of their 2025 tax liability by that date. To qualify, taxpayers must pay at least 80% of their estimated 2025 tax or 100% of the total tax reported on their 2024 return, if one was filed.
The deadline to file 2025 Idaho income taxes is Wednesday, April 15.
