The State of Idaho is Returning Taxes to its Citizens

Yes, you read that right.  This is not a joke.  The impossible has happened. In May of 2021, Governor Little signed House Bill 380, which created a tax rebate for full-time residents.  To be eligible for this rebate, taxpayers need to be a full-year resident in both 2019 and 2020 and file either a state tax return or a grocery credit return in both years.  A full-year resident is defined as spending more than 270 days in the state or being domiciled in the state.

Although the filing deadline for 2020 state income taxes was April 15, 2021, or October 15, 2021 if an extension was filed, taxpayers have until December 31, 2021 to file their 2019 and/or 2020 state income tax returns to qualify for this tax rebate.

The amount of the rebate is based on information contained on the taxpayer’s 2019 state income tax return.  It is either $50 per taxpayer and each dependent or 9 % of the tax liability for the household, whichever is greater.  Tax liability is the amount of taxes paid to the state for that tax year. In other words, after withholding, estimated tax payments, and final payments or refunds have been counted, it is how much of your money ended up in the state coffers.

For example, if Han & Leia filed as a married couple in 2019 and their tax liability was $1,500, they would receive a rebate of $135 (9% x $1,500).  However, if they had filed with their dependent, Ben, their rebate would be $150

($50 x 3).

The rebates will be sent via direct deposit for taxpayers who have received a refund by deposit for the 2020 tax year.  If the state tax commission does not have the bank account information from the 2020 tax return, they will mail a check to the address used on the 2020 tax return.  If you have moved since that time, you should send an email to RebateAddressUpdate@tax.idaho.gov with your full name, last four digits of your Social Security Number, previous address, and new address.

To track the status of your rebate, the state has created an online tool found at tax.idaho.gov/rebate where you can enter your information to find out when your rebate will be sent to you.  If you haven’t filed your 2019 or 2020 tax returns, you should file them before December 31^st to qualify for the rebate.  In the event that you are not required to file a tax return, you should consider filing them or a grocery credit refund return for these years to receive your payment.