Idaho's Recent One Big Beautiful Bill (OB3) Conformity in ProSeries

Taxpayers can now start filing their 2025 Idaho income tax returns to claim all the new conformity deductions. The Tax Commission has updated its instructions to reflect the conformity changes. The agency also notified tax software providers of the changes so they can update their systems.

“The Tax Commission has updated Form 40 and Form 43 to reflect the larger standard deduction amounts. Anyone who’s already filed using the old standard deduction amounts will automatically get the larger standard deduction.”

For more details, visit Idaho DOR. 

Program Changes ProSeries now available.

These new input fields and diagnostics have been added to address the following filing scenarios with the state.

Info:

The new calculations will automatically be applied and a new worksheet is being added to show the breakdown: Federal Schedule 1-A deductions worksheet for Form 43 filers.

• A new worksheet is being created for taxpayers who use the enhanced senior deduction, no taxes on tips, no taxes on overtime, and the car loan interest deduction.
• Amounts from this worksheet are added to the existing amount on the Qualified Business Income line (Line 18 on Form 40, or Line 40 on Form 43).
• The worksheet is not required to be attached to the 2025 return and should be available soon.
• As long as QBI amounts can be generated, it should be fine.

Filing Scenarios:

Scenario One: The Idaho return has not been filed yet:

Review the new worksheet for the summary and file as normal. 

Scenario Two: The return has already been filed and the standard deduction was claimed (No other OB3 provisions for the return):

"Anyone who’s already filed using the old standard deduction amounts will automatically get the larger standard deduction." ID DOR

No action is required. Idaho will automatically adjust the return to reflect the increased standard deduction amount.

Scenario Three: The return has already been filed, claiming the standard deduction and additional OB3 provisions impact the return:

Running a query in ProSeries Professions to identify possibly impacted returns:

1. Open ProSeries Professional to the HomeBase. 
2. In the HomeBase View drop down menu select Client Analyzer Queries. 
3. Under 1) Select Return Type choose New Queries. 
4. Under 2) Select Query choose New ID - Has OBBBA Adjustments. 
5. Select the Go button to begin the query and show impacted clients. 
6. Review the returns to see which ones may need amended returns. Follow the instructions here to complete the amended return. 

In this scenario, follow these steps to adjust the return to reflect the original return Idaho has on record before marking for amendment to include the additional OB3 details.

1. Make a copy of the originally filed return, to retain the original transmission and e-file status details
2. Open the copied file
3. Open the Federal Information Worksheet. If e-filing the return mark the Idaho amended return for e-file. 
4. Open the Idaho return. 
5. On the Form 40 or Form 43 check the Amended Return box. 
6. Enter the code of Other - attach an explanation. 
7. Complete the Amended Return Reason Statement. 
8. Review the return for the new amounts. 
9. E-file the amended return.
   
   Note: Idaho Worksheet 1-A will generate when Form 43 is applicable and Federal Sch A-1 is applicable.