Idahoans will begin receiving income tax relief direct deposits or mailed checks starting this week after Governor Brad Little passed the tax break package earlier this year.
Idahoans who were year round residents in 2019 and 2020 and who also filed an Idaho income tax return or grocery loan refund return for 2019 and 2020 are eligible for the discount. Non-residents and part-year residents are not eligible.
Each taxpayer will receive a minimum of $ 50 plus $ 50 for each dependent or 9% of the state income tax they paid in 2019, whichever is greater.
Taxpayers who received their 2020 tax refund through a direct deposit into their bank account will receive their refund payment the same way. All other taxpayers will receive paper checks to the last address on file.
The refunds are part of Little’s “Building Idaho’s Future” plan, which aims to use the budget surplus for tax breaks and key investments in areas like transportation, water and agriculture, broadband and economic development, education and more. Further information can be found at https://gov.idaho.gov/wp-content/uploads/sites/74/2021/01/2021-building-idahos-future.pdf
“This year we achieved the largest tax cut in the history of the state. We returned your tax dollars with our record budget surplus, ”said Little. “These tax cuts will make Idahoans more prosperous, keep our tax rates competitive and our business climate alive.
“Curbing government spending should be the permanent job of public servants. The repatriation of taxpayers’ money should always be our goal. ”Little added.
The Idaho State Tax Commission has a website with FAQs about tax refunds here: https://tax.idaho.gov/i-2082.cfm
Little also announced that Idaho ended its fiscal year in July with a record budget surplus of around $ 900 million and that it will seek further tax breaks and major investments during the 2022 legislature.
Idaho received approximately $ 1.25 billion in federal coronavirus aid, more than 13% of the total budget. Idaho received an additional $ 1.89 billion through the American Rescue Plan Act of 2021, just over 19% of the proposed fiscal 2022 budget of $ 9.9 billion.