Already filed your Idaho taxes? You may need to do them again if you received a tax rebate

Idahoans who received a tax rebate this past year and have already filed their 2022 taxes may be required to refile some tax documentation.

The Internal Revenue Service issued new guidance late last week that anyone who received a tax rebate does not need to report the payment on their 2022 tax return.

People who were full-time residents in Idaho and who filed an Idaho tax return or grocery credit reform fund (Form 24) for 2020 and 2021 were eligible for a tax rebate as part of Idaho Gov. Brad Little’s bill to direct $500 million of the state’s surplus back to taxpayers.

Individual taxpayers were eligible for $300, joint filers $600, or for both instances, 10% of the tax amount reported on their 2020 return, whichever number is greatest.

Those who received the payment and itemize their taxes would have received a Form 1099-G, which details payments from the government. The form must be sent to recipients by Jan. 31. The Idaho Tax Commission initially said the tax rebate might be taxable and must now resend the form to taxpayers who itemize that excludes the amount of the rebates they received.

“We’re not pleased that the IRS waited to make a decision after 1099s were required to be sent,” Idaho Tax Commission chairman Jeff McCray said in a news release. “This delay is costing Idaho taxpayers unnecessary rework and angst. We expect better from our federal partners.”

What does this mean for filing taxes?

If you received the tax rebate and were sent an initial 1099-G but have yet to file your tax return: hold off on filing until you receive the new Form 1099-G.

If you have already filed your taxes, you’ll have to file an amended return, including the new Form 1099-G. You can file an amended return by filing a Form 1040-X, according to the IRS. The Form 1040-X becomes your new tax return for the year, replacing the one you initially filed.

To file a Form 1040-X, taxpayers must include a copy of the return they are amending and instructions for the return you are amending — in this case, the Form 1099-G instructions, which can be found on the IRS’s website.

Taxpayers who have additional questions can call the Idaho Tax Commission at (208) 334-7660 in the Boise area or the toll-free number at (800) 972-7600.

Still waiting on your ID tax rebate?

If you believe you are eligible for the 2022 tax rebate but did not receive it yet, you can check the status of your refund using the State Tax Commission’s Where’s My Rebate tool or by calling either of the numbers listed above.

In both instances, you will need to provide your Social Security number or Individual Taxpayer Identification Number and one of the following three pieces of identification: your Idaho driver’s license number, state-issued ID number, or 2021 Idaho income tax return.

Taxpayers who provided bank account information when filing their 2021 tax return will receive a direct deposit into their bank account. All other taxpayers will receive a check in the mail at their most recent address on file.

If you have moved since filing your 2021 tax return, you can request an update to your address at RebateAddressUpdate@tax.idaho.gov.

If you’ve filed your 2020 and 2021 tax returns and are yet to receive your rebate, Idaho’s Tax Commission says on its website that all income tax returns go through fraud detection reviews and accuracy checks.

The commission may send letters requesting more information from individuals or verifying their identity. The commission can only issue a rebate payment once these letters are responded to.