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Income requirement for filing Gross income means all income from all sources before applying expenses or deductions. This income includes wages, interest, rents, dividends, gains from property sales, and gross business income. If Idaho requires you to file an Idaho return, you must report Idaho Source Income.
Thus, any interest or dividends received on any U.S. obligations that were included in federal taxable income is subtracted to determine Idaho taxable income for state personal income tax purposes. Such income includes distributions from mutual funds investing in federal obligations.
Outside of tax-exempt interest from California state and municipal tax-exempt bonds, all interest, dividends and realized capital gains are taxed as ordinary income.
The dividend equivalent amount is the amount of the foreign corporation's effectively connected earnings and profits for the tax year with certain adjustments for changes in the value of the equity of the foreign corporation's U.S. trade or business.
A dividend equivalent right entitles the recipient to receive credits equal to the cash or stock dividends or other distributions that would have been received on shares of stock had the shares been issued and outstanding on the dividend record date.
Which Are the Tax-Free States? As of 2023, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.
PERSI retirement benefits are generally taxable under the IRS tax code. Benefits paid to Idaho residents are generally subject to the State of Idaho income tax.
Taxpayers in Idaho pay taxes based on total income, which includes wages, salaries, self-employment income, rental income, royalties and various forms of interest income. Social Security is not taxed in Idaho, nor is interest from U.S. Government Obligations.