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Idaho: Remit Use Tax with Income Tax Returns

  • Apr 1, 2015 | Gail Cole

In recent years, the Idaho State Tax Commission has been reminding taxpayers to remember use tax when filing their income tax returns. The tradition continues this year.

On March 18, 2015, the Tax Commission posted this notice on its website: Use tax payment required on Internet, other untaxed purchases. It encourages taxpayers to verify that applicable Idaho sales tax was paid on all invoices and receipts from 2014. The following were highlighted:

  • Book and record club purchases
  • Catalog purchases
  • Goods purchased over the internet, such as books, digital music, and games
  • Magazine subscriptions
  • Purchases made in states without sales tax, such as Montana and Oregon

It’s easy!

Paying use tax is simple in Idaho, thanks to line 28 on the Idaho Individual Income Tax Return (Form 40).

People who only call Idaho home for part of the year may also owe use tax. These taxpayers should remit use tax on line 48 of their Idaho Part-Year Resident & Nonresident Income Tax Return (Form 43).

If you don’t want to wait until income tax time, the Idaho Self-Assessed Use Tax Worksheet and Return (Form 850-U) allows individuals to remit use tax any day of the year.

More than 10,000 Idahoans remitted use tax in 2013, to the tune of $640,000. The Tax Commissioner estimates that the state loses approximately $46.4 million annually due to unpaid use tax.

If individuals are rarely dinged for unpaid use tax, businesses that overlook it can face steep assessments and fines. Automated sales tax Software-as-a-Service allows businesses to file and remit transaction taxes when they’re due. Learn more.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.