How come state tax is not being calculated properly for Idaho?

[IdahoanTaxPayer]

I am confused on what should be used to calculating tax brackets. It seems that the turbotax software is using this formula:  for someone making $50,000/yr the tax is $521.63 plus 6.925% of the amount over $11,279 for a total of $3,203.06. I found information on the idaho tax website that supports this. 

However, another document on the idaho tax website also states states that the tax is $522 plus 6.925% of the amount over $23,279  for a total of  $2,372.43 

Which bracket information is correct?

By the way, why are we not able to post links to URLs in these comments?

[AnthonyC · Accepted solution]

The 2018 Idaho Form 40 instructions lay out the tax tables, which agree with TurboTax.  It shows $3,205 as the tax for a single taxpayer earning between $50,000 - $50,050 (so exactly $50,000 would compute to slightly less - or $3,203).  

You can view these tables at this link below -

https://tax.idaho.gov/forms/EIN00046_01-07-2019.pdf

This calculation ($3,203) also agrees with the brackets posted at the second link below on the site -

https://tax.idaho.gov/i-1110.cfm

Your second calculation appears to mix parts of the single bracket with the married filing jointly (but not entirely).  You should be able to post a link to a URL if you respond to this answer in a comment.  If you want to post the link there, I will take a look at wherever you found that information just for clarification - but the tax tables themselves agree with the first calculation.  

[IdahoanTaxPayer]

Any time that I try and pay a URL I get this route message: Sorry, but posting phone numbers, account numbers, and social security numbers are not allowed.

[IdahoanTaxPayer]

Any time that I try and pay a URL I get this route message: Sorry, but posting phone numbers, account numbers, and social security numbers are not allowed.

[IdahoanTaxPayer]

Any time that I try and pay a URL I get this route message: Sorry, but posting phone numbers, account numbers, and social security numbers are not allowed.

[AnthonyC]

It may be reading the numbers in a URL as a SSN.  Can you describe the section on the Idaho website where you are seeing that calculation

[IdahoanTaxPayer]

I apologize for the multiple posts. I did not realize that the message ad posted multiple times.
the document that I am using is titled "A Guide to Idaho Income Tax Withholding" and it was last updated on January 16th of this year. Lets try this: <a rel="nofollow" target="_blank" href="https://bit.ly/2T4LmI6">https://bit.ly/2T4LmI6</a>. I am looking on page 23 of the document that states that for single persons (on annual payroll period) making more than $23,279 the withholdings are $522 plus 6.925% of the amount over $23,279. Can you find it?

[IdahoanTaxPayer]

I apologize for the multiple posts. I did not realize that the message ad posted multiple times.
the document that I am using is titled "A Guide to Idaho Income Tax Withholding" and it was last updated on January 16th of this year. Lets try this: <a rel="nofollow" target="_blank" href="https://bit.ly/2T4LmI6">https://bit.ly/2T4LmI6</a>. I am looking on page 23 of the document that states that for single persons (on annual payroll period) making more than $23,279 the withholdings are $522 plus 6.925% of the amount over $23,279. Can you find it?

[IdahoanTaxPayer]

I apologize for the multiple posts. I did not realize that the message ad posted multiple times.
the document that I am using is titled "A Guide to Idaho Income Tax Withholding" and it was last updated on January 16th of this year. Lets try this: <a rel="nofollow" target="_blank" href="https://bit.ly/2T4LmI6">https://bit.ly/2T4LmI6</a>. I am looking on page 23 of the document that states that for single persons (on annual payroll period) making more than $23,279 the withholdings are $522 plus 6.925% of the amount over $23,279. Can you find it?

[AnthonyC]

I see what you are referring to now.  So, what's happening here is that these two documents are actually referring to two separate numbers.  The "Guide to Withholding" is referring to your actual wages and the Tax Table / Brackets are referring to taxable income.

First, think of withholding as a prepaid, minimum amount of tax that the state collects during the year.  There are a lot of variables to how much withholding you have during the year and it doesn't equal tax due on your income tax form (there are also a lot of variables that affect your tax return calculation).  

But - simple example - if your wages were $50,000 - then the Withholding guide recommends withholding $2,372.43 (using your calc above).  But, your taxable income isn't going to be $50,000.  Let's keep it simple and say you have no adjustments or credits and are using the standard deduction.  Idaho allows $12,000 for a single taxpayer - so your taxable income is actually only $38,000 - not $50,000.  The tax table shows a tax due of 2,374.00 on this amount.  When you have additional credits, adjustments etc - it helps give you a refund because you get that withholding back because your taxable income will be less or it will wipe out the tax due.

[IdahoanTaxPayer]

Thank-you! that makes sense and answers my question