Idaho Tax Commission issues guidance on new ‘Big, Beautiful Bill’ deductions

BOISE, Idaho (KIFI) — Following Idaho’s adoption of federal tax changes under the "Big, Beautiful Bill," the Idaho State Tax Commission has released updates for the 2025 tax season. While some benefits will be automatic, officials warn that certain taxpayers may need to wait several weeks to claim new deductions.

According to a news release, the Tax Commission has successfully updated its internal systems to reflect the newly increased standard deduction.

For those who have already filed or are planning to take the standard deduction, no further action is required. The system will automatically apply the larger amount, meaning early filers will not need to file an amended return to receive the benefit.

Meanwhile, taxpayers planning to claim specific "conformity deductions" are being told to hold off on filing. The Tax Commission is currently updating forms to accommodate the Enhanced Senior Deductions, Qualified Tips from Wages, Car Loan Interest, Overtime Compensation.

Systems and forms for these specific deductions are expected to be ready by mid-to-late March. The Tax Commission plans to release detailed instructions on how to claim these items at that time.

For more information or to make payments, visit tax.idaho.gov or (208) 334-7660 in the Boise area or toll-free at (800) 972-7660. The deadline to file 2025 income taxes is Wednesday, April 15.