BOISE, ID – The Idaho State Tax Commission says a recent issue that caused some electronically filed 2025 business income tax returns to be rejected has now been resolved. Tax preparers can resubmit those returns, according to a news release issued Friday.

Officials said the problem was limited to certain business e-file submissions and was not related to Idaho’s recent tax conformity updates.

The Tax Commission is also reminding residents that 2025 Idaho income tax returns can now be filed using the state’s new conformity deductions. These include a larger standard deduction, an enhanced deduction for seniors, and deductions tied to tips from wages, car loan interest, and overtime compensation.

Taxpayers filing a Form 40 will claim the deductions by following the instructions for line 18. Those using Form 43 will follow instructions for line 40 and complete Idaho Worksheet 1-A to help determine their deduction amounts.

The Tax Commission said anyone who filed before the conformity deductions were available will need to submit an amended return to claim most of the new deductions. However, taxpayers who already filed using the previous standard deduction will automatically receive the larger standard deduction without filing an amendment.

For businesses, the conformity changes include adjustments to deductions related to research and experimentation expenses and bonus depreciation. Officials recommend businesses review the updated instructions for income tax forms or consult a tax professional.

The agency also provided updated refund timelines. Taxpayers who filed before March 10 can expect refunds by the end of May. Those filing on or after March 10 should expect refunds within normal processing timeframes — about seven to eight weeks for electronically filed returns and 10 to 11 weeks for paper returns.

The deadline to file 2025 Idaho income tax returns is Wednesday, April 15.

Tax forms, payment options, and assistance are available at tax.idaho.gov or by calling the Idaho State Tax Commission.