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Idaho Tax Commissioners Delay Income Tax Filing Deadline

Jenny Kane
AP Photo

The Idaho Tax Commission has officially extended the state’s deadline for filing income taxes to May 17.

The change aligns with the federal deadline, which was extended earlier this month by the U.S. Treasury Department and the IRS.

Commissioners unanimously adopted the change Thursday, March 25 with just a few weeks left before the original April 15 deadline.

“It is a legitimate thing to do for the taxpayers and citizens of the state of Idaho,” said Commissioner Tom Kastilometes.

State legislators were in the process of fast tracking a bill that would’ve made the same changes, but an outbreak of COVID-19 that sickened six House lawmakers in less than a week forced both chambers to recess until next month.

“I appreciate the Tax Commission and the Idaho Legislature for prioritizing the actions needed to ease the burden on Idahoans in preparing their taxes this year,” Gov. Brad Little said in a statement.

Idaho lawmakers are also considering a $390 million tax cut and rebate plan, which could have implications for residents who’ve yet to file their income taxes.

Each of the state’s income tax brackets would be cut under the bill. Those earning more than $11,760 fall into Idaho’s top tax bracket and would pay 6.5% – down from 6.925%.

A one-time rebate would be based on a person’s 2019 tax filing and include a minimum $50 per person and dependents or an amount equal to 9% of state tax they paid that year, whichever is greater. It doesn’t include an income cap.

House Republicans passed the measure March 17 along party lines, with Democrats saying it will mostly benefit the rich. It still needs approval in the Senate and by the governor to become law.

Democrats also warned that the proposal could violate rules in the most recent federal coronavirus relief package. That is, if states face shortfalls because of their own tax cuts, the federal money can't help replace that lost revenue.

This plan would use a combination of general fund dollars and cash collected from online sales.

A U.S. Treasury spokesperson told the Associated Press earlier this month said states could use their own money to cover tax cuts without violating the law.

The American Rescue Plan Act of 2021 also includes several new federal tax provisions, such as:

  • Hiking the child tax credit
  • An extension for employers who collect federal money to fund their employees’ paid sick and family leave
  • Permanently fixing the threshold for deducting medical expenses
  • An expansion on who’s eligible for a health insurance tax credit or subsidy

Follow James Dawson on Twitter @RadioDawson for more local news.

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I cover politics and a bit of everything else for Boise State Public Radio. Outside of public meetings, you can find me fly fishing, making cool things out of leather or watching the Seattle Mariners' latest rebuilding season. If you have a tip, please get in touch!

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