2025 Idaho State Income Tax Return changed?

[superdav]

I had already filed my Federal and Idaho State Returns.  I received an email that my Federal Refund was deposited in my bank.  I went back to TurboTax to ensure the amount was correct.  It was then that TurboTax did and Update.  While my Federal Return was correct.  My Idaho State Tax Due was significantly less than I had paid previously.  It appears that Idaho had not taken account the Big Beautiful Bill and it changed my Amount Due.  Turbotax asked if I need to amend my return.  I have gone through the walk through, and it appears that I can amend my return to get a refund of the difference.  Before I send it off, I want to make sure that is correct.

Has anyone else experienced this?  I'm not sure what to do.....Thanks!

[ThomasM125]

You can wait a few weeks to see if you get a notice from Idaho saying they adjusted your tax return. It is possible they will adjust it automatically when they process it if the change is something they can detect. If so they would send you a refund payment. If you don't hear from them, then you can file the amended return.

[superdav]

Okay but Turbotax appeared to know about it since they updated their program.  It guided me to do an amendment.  But there are a lot of new stuff on the forms.  I'm kind of trusting TurboTax.  It looks pretty straight forward but how do I know if it is correct?  I never got a notification from either TurboTax or Idaho.  It was just by rechecking my return that it came about....Can't find any real guidance online.

[AmyC]

Idaho changed their laws Feb 17, 2026. Once changed, they had to approve and update forms, then release it to others - like us, then we had to update the software. It was a long process. You filed your return under the old laws and now you qualify to file with the new laws. I agree with @ThomasM125 that the state may be handling the process for you (many states do in these cases- but not all). You can wait or you can file an amended return. 

Reference: Update on filing 2025 Idaho income taxes now that conformity 

[superdav]

Awesome and Thanks!...Question though.  TurboTax software is up to date with the Idaho Changes?  It is quite a different change.  Some of the line items in the REVISED Idaho Tax Program are quite different than when I originally filed.  But I guess it is taken from the Federal Forms and a few more questions pertaining to Idaho.   I just want to make sure it is good and I will file the amended Idaho Tax Return.  I guess it is good since TurboTax guarantees its calculations....

[AmyC]

You do want to review the forms and make sure they make sense. The changes relate to the federal changes under OBBBA. You want to verify those federal changes are flowing into the state as you would expect. Depreciation is a big change that can really move the refund needle. Glad to help. Have a great year!

[superdav]

Thanks Amy....I am no Tax Expert and I know enough to be dangerous....lol...so I am trusting TurboTax.  The Line Item I noticed that I can't get a straight answer is that on the new TAX Summary Form I noticed that there is 12,000 under Qualified business Income Deduction that was not on the original filing.  Is that something new with Idaho?  Why would that show up?

[DawnC]

I don't see any changes with the ID qualified business income deduction.  However, Idaho now conforms to a new larger amount >>>  For single filers, the amount is 12K, so that may be what you are looking at??

[superdav]

Thanks Dawn C....I guess my question is what is a Qualified Business Expense and why do we get it?

[DawnC]

The Qualified Business Income (QBI) Deduction lets most self-employed taxpayers and small business owners exclude up to 20% of their qualified business income (QBI) from federal income tax.  What's the Qualified Business Income (QBI) deduction?   Idaho conforms to the IRS with respect to QBI.

It can also come from a 1099-DIV with an amount in Box 5..  Qualified business income (QBI) is the net income or loss from a trade or business. This includes income generated from partnerships, S -corporations, sole proprietorships, and some trusts.  A Real Estate Investment Trust (REIT) may be a part of a mutual fund you own.  

[superdav]

In comparing with the Federal Return, it appears it is part of the Enhanced deduction for Seniors and other deductions that were included in the OBBB.  So, I have re-filed the Idaho Amended State Return as completed through TurboTax.  We get $$$ back that we already paid!  Yay!

Thanks for everyone's help!!