7 tips for filing Idaho taxes

As the April 15 income tax deadline approaches, the Idaho State Tax Commission is offering some tips to make filing taxes easier:

1. Take advantage of free tax help
Senior citizens and people with low to moderate incomes can get free help preparing their income tax returns at sites throughout Idaho. The free help is meant for taxpayers with simple federal and Idaho tax returns. That includes taxpayers submitting a state return only to get a grocery credit refund and those filing a federal return only to claim the Earned Income Tax Credit.

To find the site closest to you, go to the Tax Commission’s website. Click on “Free income tax help” in the “Quick Picks” section. The sites are sponsored by the Internal Revenue Service (IRS) or the AARP Foundation.

2. E-file your return
Filing your return electronically has many benefits. They include:

The software does the math for you. You get a confirmation email. Your electronic filing provider keeps a record of your tax return. You get a faster refund than if you file by paper. It generally takes about seven to eight weeks to receive a refund when you e-file versus 10 to 11 weeks for a paper return. Using direct deposit gets the refund to you even faster.

3. See if you qualify to e-file your return for free
The Tax Commission has worked with software developers and the IRS to offer certain taxpayers free electronic filing of simple state and federal returns. If your adjusted gross income is $66,000 a year or less, you probably can e-file your returns for free.

To find the free e-filing offers, visit the Tax Commission’s website. Click on “Free income tax e-file–See if you qualify!” in the “Quick Picks” section. Last year, nearly 500,000 Idaho taxpayers could have qualified to e-file for free.

4. Make sure your return is complete

Double-check your figures to make sure you have no typos. Also, confirm your Social Security numbers (SSNs). Incorrect SSNs will delay a refund. Make sure you list your current mailing address. Tax Commission officials need this if you’re getting a refund or to send you a letter asking for more information if necessary. Also let them know if you change addresses after you file. If you’re e-filing, make sure you list the correct Employer Identification Number (EIN) and the employer’s state ID number when entering information from your W-2s. Incorrect numbers will delay a refund. If you’re filing by paper: Include all your W-2s and a complete copy of your federal return. Both spouses must sign if you’re filing a joint return.

5. Remember to pay use tax
Use your income tax return to pay tax on those untaxed purchases you made last year. If you didn’t pay sales tax when you bought the products, you owe a 6-percent use tax if you’re storing or using the goods in Idaho. For example, sellers on the internet might not charge sales tax if they’re not Idaho retailers.

Check your invoices or receipts to see whether sales tax was collected. If it wasn’t, report and pay the use tax on line 29 of Form 40 (Idaho Individual Income Tax Return). Or pay the tax on line 48 of Form 43 (Idaho Part-Year Resident & Nonresident Income Tax Return).

6. If you’re due a refund, don’t delay filing your return
Many people don’t realize there’s an expiration date for claiming a refund. You have three years from the original due date of your income tax return (usually the April 15 following the end of the tax year). This includes claiming a refund of any estimated payments or withholding for that tax year. For example, to get a refund for your 2015 tax return, you must file it by April 15, 2019. The Tax Commission can’t issue a refund after that date.

You also have three years from a return’s due date to claim a credit – such as an estimated payment – to apply to any tax due. Once you’re past the due date, you can’t use the credit to offset any tax you may owe.

7. Final Tip: Respond to any Tax Commission letters asking for more information
All income tax returns go through fraud detection reviews and accuracy checks before any refunds are issued. After you file your return, the Tax Commission may send you letters asking you to validate your identity or verify that you filed a tax return. The letters also may ask you to provide missing or extra information for your return. If you receive a letter, take the requested action right away. Processing of your refund will continue once you provide the needed information.