Idaho Admin. Code r. 35.01.01.700 - CREDIT FOR INCOME TAXES PAID ANOTHER STATE OR TERRITORY: IN GENERAL
Section 63-3029, Idaho Code
01.
Taxes Not Eligible for the
Credit. If any tax or portion thereof is imposed on capital stock,
retained earnings, stock values, or a basis other than income, the tax is not
eligible for the credit. The credit is not allowed for income taxes imposed by
another state on income not taxed by Idaho. (4-6-23)
02.
Credit Calculated on a
State-by-State Basis. The credit and credit limitations are to be
calculated on a state-by-state basis. The taxpayer may not aggregate the income
taxed by other states or the taxes paid to the other states for purposes of
calculating the credit and its limitations. (4-6-23)
03.
Income Tax Payable to Another
State. The income tax payable to another state is to be the tax paid
after the application of all credits. The tax paid to the other state must be
for the same taxable year that the credit is claimed. Tax paid to cities or
counties does not qualify for the credit. (4-6-23)
04.
Limitations. The credit for
taxes paid to another state is limited as follows: (4-6-23)
a. The credit allowed may not exceed the
amount of tax actually paid to the other state. This includes the amount paid
by a qualifying individual and the amount paid for such individual by an S
corporation, partnership, limited liability company, estate, or trust.
(4-6-23)
b. If an individual
receives a refund due to a refundable credit for all or part of the income tax
paid by the pass-through entity, the amount of the refund attributable to the
refundable credit reduces the income tax paid by the pass-through entity.
(4-6-23)
c. The credit may not
exceed the proportion of the tax otherwise due to Idaho that the adjusted gross
income of the individual derived from sources in the other state as modified by
Chapter 30, Title 63, Idaho Code, bears to total adjusted gross income for the
individual so modified. (4-6-23)
d.
The credit allowed to an estate or trust may not exceed the proportion of the
tax otherwise due to Idaho that the federal total income of the estate or trust
derived from sources in the other state and taxed by that state bears to the
federal total income of the estate or trust. (4-6-23)
i. Federal total income of the estate or
trust derived from sources in the other state is to be determined using the
Idaho sourcing rules applicable to nonresidents found in Section
63-3026A, Idaho Code and related
rules. Income derived from the ownership or disposition of any interest in real
or tangible personal property located in the other state is to be considered to
be income derived from sources in the other state. Interest income earned on a
bank account generally would not be income derived from sources in the other
state as provided in Rule
266 of these rules.
(4-6-23)
05.
Examples. Available at Income Tax Rules Examples.
(4-6-23)
Notes
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