Idaho COVID-19 payments are subject to tax
Tuesday, September 1, 2020

Idaho COVID-19 payments are subject to tax

By Payroll and Entitlements Editorial Staff

Idaho personal income taxpayers receiving money from the state due to the COVID-19 pandemic will owe tax on that money.

The taxable income included:

  • Unemployment insurance benefits provided to people who lost their job.
  • Idaho Return-to-Work bonuses awarded to certain employees who were laid off due to the pandemic and then returned to work.
  • Rebound Idaho cash grants awarded to small businesses and people who are self-employed.

Recipients of the benefits, bonuses, and cash grants must report the money on their Idaho income tax return. If Idaho income tax wasn’t withheld when they received the money, they may owe more tax than expected or have a smaller-than-expected refund.

Idahoans who received federal economic impact funding – sometimes referred to as “stimulus” payments – don’t have to worry about reporting that money as income. Those payments aren’t subject to Idaho income tax. (Idaho State Tax Commission, News Release , August 20, 2020).

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