The State of Idaho standard deduction (for married, filing jointly) on TurboTax is still programmed at $30,000 for 2025. Idaho needs to update their State Income Tax forms and paperwork for 2025 as well, as they still show the deduction as $30,000. But, similar to what happened in 2024, I thought that Idaho allowed for the use of the federal deduction (of $31,500), since it is greater? If so, TurboTax needs to be re-programmed to provide for that, and recognize that a deduction of $31,500 would indeed result in providing the lowest possible tax , compared to a $30,000 deduction, as per Turbotax's guarantee. That doesn't look good for TurboTax and makes me wonder what else is missing, especially since I might also add that TurboTax did not initially prompt me for my Solar Panel Installation costs/credit for my federal return. (However, it did just fine for my State return!). I had to specifically look for that deduction and add it in there. Once I did that, the program then went sent me through other alternative energy questions, as would be expected, but I thought it was odd that if I hadn't known I was eligible for that credit, that TurboTax would have missed it entirely, and that's a HUGE credit. Have used TurboTax for over ten years now; am no longer confident this is the best way to file my taxes anymore, even as the cost and pricing has increased dramatically. Heck, even when I try to post this message, it doesn't even provide me with an option for my current 2025 TurboTax edition (Premium), so I'll just enter "Premier" for now. Maybe TurboTax should use some of those "tax experts" that TurboTax keeps trying to charge me for, to go over the program in great detail?
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Idaho Individual 2025 Income Tax, page 8, states:
Lines 13 – 16
Standard Deduction
Most people can find their standard deduction by looking at the instructions to the left of Form 40, line 16.
Idaho Form 40 page 2 displays the standard deduction for married filing jointly to be $30,000.
However, you may use your Federal itemized deductions rather than the Idaho standard deduction. See on page 8, column 2.
Itemized Deductions
If you use federal Schedule A to itemize, follow these instructions...
Pleased that you were able to qualify for a Solar Energy Tax Credit.
You said: However, you may use your Federal itemized deductions rather than the Idaho standard deduction. See on page 8, column 2.
I can't find what you are talking about here.
Federal form shows $34700 deduction State shows $33200.
How do I get TurboTax to correct this?
If you are using itemized deductions on your Idaho state return, the amount allowed is not necessarily equal to the Federal itemized deduction amount.
To get the amount allowed for Idaho itemized deductions, take the Federal itemized deductions on Schedule A and subtract the amount shown on Schedule A line 5a.
From the Instructions for Idaho Form 40: "Idaho requires you to subtract state income tax, local income tax, or general sales tax on federal Schedule A from your total itemized amount before you use that amount to reduce your income."
That is why the amounts for itemized deductions do not match when looking at your Federal return and state return.
Standard deduction was used for both Federal and State. There is no schedule A.
The instructions on page 10 in the Idaho Instructions for 2025 Form 40, show that the base amount of standard deduction for Married Filing Jointly is $30,000 and it looks like you qualify for 2 exemptions of $1600 each for being either blind or age 65 or older. The Federal Standard Deduction for Married Filing Joint for a couple aged 65 or older would be $34,700, which for the same scenario in Idaho would $33,200 ($30,000+2x$1600).
You can check this information at this link - Idaho Tax instructions. Click on the 2025 Instructions for Form 40 and go to the bottom of page 10 for the Standard Deduction worksheet.
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