Idahoans set to receive tax relief

Idahoans will begin receiving direct deposits or mailed checks in the form of income tax relief starting this week, following the passage of Gov. Brad Little’s tax relief package earlier this year.

Idahoans who were full-year residents in 2019 and 2020, and who also filed an Idaho individual income tax return or a grocery credit refund return for 2019 and 2020, are eligible for the rebate. Nonresidents and part-year residents aren't eligible.

Each taxpayer will receive a minimum of $50, plus $50 for each dependent, or 9% of the state income tax they paid in 2019, whichever is greater.

Taxpayers who received their 2020 tax refund through a direct deposit to their bank account will receive their rebate payment the same way. All other taxpayers will receive paper checks sent to the most recent address on file.

The refunds are part of Little’s “Building Idaho’s Future” plan to use the budget surplus for tax relief and key investments in areas like transportation, water and agriculture, broadband and economic development, education and more. For more information go to https://gov.idaho.gov/wp-content/uploads/sites/74/2021/01/2021-building-idahos-future.pdf

“This year, we achieved the single largest tax cut in state history. We’ve returned your tax dollars with our record budget surplus,” Little said. “These tax cuts boost Idahoans' prosperity, and they keep our tax rates competitive and our business climate vibrant.

“Curbing government spending should be the perpetual mission of public servants. Returning taxpayer dollars should always be our goal.” Little added.

The Idaho State Tax Commission has a web page with FAQs on the tax rebate here: https://tax.idaho.gov/i-2082.cfm

Little also announced that in July Idaho ended its fiscal year with a record budget surplus, around $900 million, and that he would continue to pursue added tax relief and key investments during the 2022 legislative session.

Idaho received around $1.25 billion in federal coronavirus aid, over 13% of the total budget. Idaho received another $1.89 billion through the American Rescue Plan Act of 2021, just over 19% of the proposed 2022 fiscal year budget of $9.9 billion.