In 2018, the Idaho State Tax Commission reported that e-filed returns were processed in about 7–8 weeks, while paper returns took 10–11 weeks. That extra month can be the difference between having your refund in hand or waiting while bills, expenses, and interest keep adding up. Filing early and electronically isn’t just convenient—it’s the smarter way to protect your money.

This guide will walk you through how to file your Idaho tax return for the 2018 tax year. Whether you’re an individual earning wages, a sole proprietor juggling expenses, or a small business reporting for employees, the proper process can save you time and help you avoid costly mistakes. You’ll learn about the necessary forms, income thresholds, payment methods, and common errors that lead to penalties or delays.

Filing on time and accurately means you get your refund faster, avoid penalties and interest, and claim every credit you’re eligible for—from grocery credits to business deductions. By following the steps in this article, you can confidently complete your return and ensure it’s processed without delays.

Who Needs to File in Idaho for 2018

Under Idaho Code section 63-3030, Idaho law sets clear rules on who must file a state income tax return. If you were a full-year resident in 2018 and your income met or exceeded the filing thresholds set by the Idaho State Tax Commission, you must file. Even if your income was below the threshold, you must still file if any Idaho income tax was withheld from your wages or if you made estimated tax payments during the year.

Filing requirements also apply to part-year residents and nonresidents who earned income from Idaho sources. If you lived in Idaho for only part of 2018 or had business operations, rental property, or wages in the state, you will generally need to file using Form 43. Idaho residents must report all income, regardless of where it was earned, but can claim credits for taxes paid to other states.

Here are common situations that require filing a 2018 Idaho return:

  • You earned wages or a salary in Idaho, subject to state withholding.
  • You operated a business or earned self-employment income within the state.
  • You received rental income from the Idaho property.
  • You had Idaho income tax withheld from retirement distributions, unemployment benefits, or investment income.
  • You made estimated tax payments to Idaho during 2018.

Small business owners, sole proprietors, and self-employed taxpayers should pay close attention to filing requirements, as failure to file can result in penalties and accrued interest on taxes owed. Even if your business had a low-income year, filing ensures you can claim credits and maintain a clean tax record.

If unsure whether you qualify, review your wages, other income sources, and tax withholdings for the year. Filing when required keeps you compliant and ensures you can recover any overpaid taxes through a refund.

Key Deadlines and Filing Changes for 2018

The deadline for the 2018 tax year to file your Idaho state income tax return was April 17, 2018. Filing by this date was essential to avoid penalties and interest on any taxes owed. The Idaho State Tax Commission automatically granted a six-month extension for filing if you paid at least the required amount by the original deadline. Still, this extension applied only to filing, not payment. Taxes owed after April 17 began accruing penalties and interest immediately.

The 2018 tax year also brought several updates to Idaho’s tax rules due to changes at the federal level. The state adjusted to align with specific federal tax reform provisions while keeping Idaho-specific deductions and credits. This included updates to the standard deduction amounts and the treatment of certain itemized deductions, such as removing state and local income taxes from allowable deductions on Schedule A.

If you filed after the April deadline without paying your balance, you faced a 5% late-payment penalty per month, up to 25%, and a 10% failure-to-file penalty. The Tax Commission set interest rates annually, and they continued to accrue until the balance was paid in full. Understanding the filing date and the implications of late filing or payment is crucial for avoiding unnecessary costs and keeping your account in good standing with the state.

Forms You Need 

Filing your 2018 Idaho state income tax return starts with choosing the correct forms based on your residency status, income sources, and credits you plan to claim. Using the wrong form can lead to delays, rejected filings, or missed deductions.

  • Form 40 – Idaho Individual Income Tax Return: This is the primary form for full-year Idaho residents. It covers most individual taxpayers with wages, self-employment income, or simple investment earnings. You’ll use it whether you claim the standard deduction or itemize deductions.
  • Form 39R – Supplemental Schedule: Required if you have Idaho-specific additions or subtractions to your income, such as certain retirement benefits or income adjustments, and for claiming some state credits.
  • Form 43 – Idaho Nonresident and Part-Year Resident Return: Used by those who lived in Idaho for only part of 2018 or earned income from Idaho sources while living elsewhere. This form calculates your Idaho taxable income proportionally.
  • Form 44 – Idaho Business Income Tax Credits: For individuals or businesses claiming credits such as investment tax credits, research and development credits, or other business-related incentives.
  • Form 51 – Estimated Payment Voucher: If you made quarterly estimated tax payments for 2018, use this form to document those amounts on your return.
  • Form 75 – Fuels Tax Refund: Used to claim refunds for taxes paid on fuel used for non-highway purposes, such as farming equipment.
  • Form ID-40V—Payment Voucher: This is for taxpayers who mail in a payment without a return or who pay a balance due after filing electronically.

All forms can be downloaded from the Idaho State Tax Commission’s website, along with detailed instructions for completion. Be sure to attach a full copy of your federal return when filing your Idaho Form 40 or Form 43, as required. Missing forms or attachments can cause processing delays and could postpone your refund.

Reviewing the official form instructions is critical for businesses and individuals with more complex tax situations to ensure they are claiming all eligible deductions and credits. Using the correct forms from the start is one of the simplest ways to prevent correspondence from the Tax Commission requesting corrections or additional documentation.

Step-by-Step Filing Process

Filing your 2018 Idaho state income tax return accurately requires a systematic approach. Following these steps will help you avoid costly errors, claim all eligible deductions and credits, and ensure your return is processed without delays.

Step 1: Gather Your Documents

Before you begin, collect all relevant tax documents:

  • Federal tax return: A complete copy of your 2018 Form 1040 and schedules is required.
  • W-2 forms: From all employers showing wages and Idaho tax withheld.
  • 1099 forms: Including 1099-INT (interest), 1099-DIV (dividends), 1099-R (retirement distributions), and 1099-MISC or 1099-NEC for self-employment income.
  • Idaho withholding statements: For retirement, unemployment benefits, or other taxable income.
  • Deduction and credit documentation: Medical expenses, mortgage interest, charitable contributions, and other deductible expenses.

Step 2: Complete Personal Information

On Form 40 or Form 43, enter:

  • Full name, Social Security number, and current mailing address.
  • Spouse information if filing jointly.
  • Filing status (single, married filing jointly, head of household, etc.). Ensure it matches your federal return to prevent processing issues.

Step 3: Report Your Income and Adjustments

  • Line 7 (Form 40): Start with your federal adjusted gross income.
  • Idaho-specific additions: Add taxable items that Idaho recognizes but the federal government may exclude. Report these on Form 39R.
  • Idaho-specific subtractions: Deduct items such as certain retirement income or active duty military pay.

Step 4: Calculate Your Deductions

  • Standard deduction for 2018:
    • Single/Married Filing Separately: $12,000
    • Head of Household: $18,000
    • Married Filing Jointly/Qualifying Widow(er): $24,000
  • If itemizing, complete federal Schedule A first, then remove state and local income taxes as required for Idaho.

Step 5: Determine Your Tax and Apply Credits

Use the Idaho tax rate schedule or tables to calculate your base tax. Then apply eligible credits:

  • Grocery Credit: Offsets sales tax on groceries (averages $120 per person).
  • Idaho Child Tax Credit: Based on dependent qualifications.
  • Business income tax credits: Claimed on Form 44.
  • Credit for elderly or disabled care: For maintaining a home for qualifying family members.

Step 6: Calculate Payments, Refunds, or Amounts Due

  • Add all Idaho tax withheld (from W-2s, 1099s).
  • Include estimated payments from Form 51.
  • Subtract total payments from your tax owed to determine your refund or balance due.

Common Mistakes to Avoid

  • Forgetting to attach your complete federal return.
  • Using the wrong Social Security number or filing status.
  • Math errors or failing to carry amounts correctly between forms.
  • Omitting schedules or documentation for claimed credits.
  • Missing signatures—both spouses must sign if filing jointly.

Following these steps methodically can save you from processing delays, reduce the risk of penalties, and speed up your refund. Whether you choose to e-file or mail your return, completeness and accuracy are your best tools for avoiding complications.

How to File Your Return

Idaho taxpayers have two primary ways to submit their 2018 state income tax return: electronic filing (e-file) and paper filing by mail. Choosing the correct method can significantly affect how quickly your return is processed and when you receive your refund.

Electronic Filing (E-File)

E-filing is the fastest, most efficient option. The Idaho State Tax Commission reported that e-filed returns for 2018 were processed in about 7–8 weeks, compared to 10–11 weeks for paper returns.

  • Benefits of e-file:
    • Faster refund processing.
    • Reduced risk of calculation errors.
    • Immediate confirmation that your return was received.
  • Free e-file options: Certain taxpayers qualify for free filing services through the Idaho State Tax Commission’s Free File program. Eligibility is based on income, age, or military status. Visit the Commission’s website to see if you qualify.

Paper Filing by Mail

Some taxpayers may prefer to file it on paper, or else it must be filed on paper. In this case, mailing your return to the correct address is critical:

Returns with payment:
Idaho State Tax Commission  

PO Box 83784  

Boise, ID 83707-3784  

Returns without payment or with refund:
Idaho State Tax Commission  

PO Box 56  

Boise, ID 83756-0056  

Always include a complete copy of your federal return and all supporting forms. Missing attachments can delay processing.

Tips for a Smooth Filing Process

  • Double-check your address and Social Security numbers.
  • Sign your return—both spouses must sign if filing jointly.
  • If mailing, use certified mail for proof of timely submission.
  • Keep copies of all documents for your records.

Selecting the correct filing method and ensuring your return is complete will help you avoid unnecessary delays and keep your account in good standing with the Idaho State Tax Commission.

Payment Options and Plans

If you owe taxes on your 2018 Idaho return, paying the balance promptly will help avoid penalties and interest. The Idaho State Tax Commission offers several payment options, including online systems, mail-in payments, and installment plans for taxpayers who cannot pay the full amount immediately.

Online Payment Options

The fastest and most secure way to pay is through the Tax Commission’s E-Pay system or the Taxpayer Access Point (TAP) portal. These services allow you to:

  • Make a one-time payment.
  • Set up a direct debit from your bank account.
  • Manage your account and see recent payments.

Benefits of paying online:

  • Payments post quickly, reducing the time interest continues to accrue.
  • You receive instant confirmation of your payment.
  • You can schedule payments in advance.

Payment by Mail

If you prefer to pay by check or money order:

  • Make it payable to the Idaho State Tax Commission.
  • Include your Social Security number on the memo line.
  • Use Form ID-40V if you are sending a payment without your return.

Mail payments to:
Idaho State Tax Commission  

PO Box 83784  

Boise, ID 83707-3784  

Short-Term and Long-Term Payment Plans

If you cannot pay the full amount immediately, you may qualify for an installment agreement:

  • Short-term payment plan: Generally up to 12 months.
  • Long-term payment plan: May extend beyond a year, depending on your balance and eligibility.

Key points about payment plans:

  • You must apply through the TAP portal, by phone, or by mail.
  • Approval depends on your tax history, balance owed, and ability to pay.
  • Accrued penalties and interest will continue until the balance is paid in full.
  • Missing a payment can cancel the agreement and collection actions, including wage garnishment or liens.

Managing Tax Debt

If your balance is large or you have other debts, review your finances before applying for a plan. The Commission may consider your monthly income, property, and other obligations. Timely communication with the agency is essential to avoid escalated enforcement. By choosing the right payment option and keeping up with your agreement, you can manage your Idaho tax debt without excessive penalties or damage to your financial record.

Penalties, Interest, and Avoiding Costly Mistakes

Failing to file or pay your Idaho state income tax return on time can lead to accrued penalties and interest that quickly increase your total bill. For the 2018 tax year, the Idaho State Tax Commission assessed a 10% failure-to-file penalty and a 5% late-payment penalty per month on any unpaid balance, up to a set limit. These charges begin the day after the original date your return was due and can hit harder if left unpaid for several months.

In addition to penalties, interest will continue accumulating on the unpaid amount until it is paid in full. The Tax Commission sets the interest rates annually and applies them even if you have entered into a monthly payment arrangement or a long-term installment plan. Ignoring notices or delaying payment can lead to enforced collection actions such as wage garnishments or liens against property.

To avoid these added costs, always file your return by the April deadline, even if you cannot immediately pay the full amount. Submitting your return on time prevents the failure-to-file penalty, and you can request a payment plan to spread out your balance. Filing early also allows you to address any unexpected issues before penalties accrue.

Common factors that trigger penalties include:

  • Forgetting to sign your return.
  • Entering incorrect Social Security numbers.
  • Not including your federal return copy.
  • Misreporting wages from an employer.
  • Underestimating tax owed due to overlooked income sources.

Reviewing your return before submitting it can save you money, protect your account history, and help you avoid the financial strain that comes from interest and penalties building over time.

Tracking Your Refund or Balance Due

After filing your 2018 Idaho state income tax return, you can easily check the status of your tax refund or see your balance if you owe. The Idaho State Tax Commission offers an online tracking tool at tax.idaho.gov/refund, where you can confirm when your return has been processed and your refund has been received. You will need your Social Security number and the exact refund amount from your return.

For taxpayers with an outstanding balance, the Commission’s Taxpayer Access Point (TAP) portal allows you to log into your account, view your current amount due, and make payments. TAP also supports payment plan online applications, letting you request short-term or long-term arrangements without mailing forms. This can be useful if you cannot pay the full balance simultaneously but want to avoid additional penalties and interest.

Refund processing times for the 2018 tax year averaged 7–8 weeks for e-filed returns and 10–11 weeks for paper returns. Balance information in TAP updates daily, so you can monitor progress as you pay down the amount you owe.

Keeping track of your refund or balance helps you manage money effectively and avoid missing deadlines. By checking your status regularly, you can spot any issues early, such as delays caused by incomplete forms or missing documentation, and take action before additional costs accrue.

Final Filing Checklist

Before sending in your 2018 Idaho state income tax return, use this checklist to ensure it is complete and ready for processing. Missing even one detail can slow your refund or create unnecessary penalties.

Final Steps Before Filing:

  • Confirm all personal information is correct, including names, Social Security numbers, and address.
  • Attach a full copy of your federal return.
  • Include all W-2s, 1099s, and other income statements from your employer or other sources.
  • Double-check math on every page.
  • Include all required forms and schedules (Form 39R, Form 44, etc.).
  • Sign and date your return — both spouses must sign for joint returns.
  • If mailing, use the correct address for returns with or without payment.
  • Keep copies of all documents for your records.

Tips for Faster Processing:

  • E-file if you can, to shorten refund timelines.
  • Use direct deposit for refunds and direct debit for payments to save time.
  • Submit any correspondence or supporting documents promptly if requested by the Tax Commission.

Completing this checklist before you apply or submit ensures fewer delays and helps you avoid additional costs from penalties or interest.

Frequently Asked Questions (FAQs)

How does Idaho handle combined tax for businesses or individuals with multiple income sources?

Idaho requires residents to report all taxable income, which can result in a combined tax amount if you have wages, business income, or investment earnings from different sources. This total is used to calculate your state tax liability. You may qualify for credits to offset taxes paid to other states, but accurate reporting ensures you pay the correct amount and avoid penalties or interest.

Can I use personal loans to pay my Idaho tax bill?

Some taxpayers choose loans from banks, credit unions, or other lenders to pay their state taxes in full. This may help you afford the payment upfront and avoid additional penalties from the Tax Commission. Before proceeding, compare interest rates and fees against those a state payment plan charges to determine which option costs less over time.

What are the fees for Idaho payment plans?

The Idaho State Tax Commission may add setup fees for installment agreements, depending on the type of plan. While there are no prepayment penalties, interest still accrues on unpaid balances. Reviewing your last reviewed or updated payment plan terms—often noted on the page as the last reviewed date on official resources—helps ensure you know the total cost before committing.

Can IRS agreements help with Idaho tax debt?

No, an IRS payment agreement applies only to federal taxes. Idaho tax debt must be managed separately through the Idaho State Tax Commission. Applicants for state payment plans can use the TAP portal or mail-in forms to request an agreement. Keeping federal and state arrangements in good standing is essential to prevent collection actions from either agency.

Who can apply for an Idaho payment plan if they can’t afford full payment?

Applicants include individuals, small businesses, and sole proprietors who owe state taxes but cannot pay the full balance at once. To afford repayment, you can request an installment plan online or by phone. Eligibility is based on your account history, amount owed, and timely tax return submission. Approval may depend on income, expenses, and prior compliance.

How do I apply for an Idaho payment plan online?

You can request a payment plan online through the Idaho State Tax Commission’s Taxpayer Access Point (TAP) portal. This system allows you to submit your application, choose between short-term or long-term plans, and set up automatic payments. Applying online can speed up approval, help you avoid mailing delays, and give you immediate access to plan details, including due dates and remaining balance.