Idaho Income Tax Applies To State-Level Pandemic Relief

Idaho unemployment insurance benefits, return-to-work bonuses and certain cash grants issued in response to the economic effects of the COVID-19 pandemic are subject to state income tax, the Idaho State Tax Commission said.

A news release issued Thursday said that state taxpayers should set aside money received from state-level pandemic benefits for 2020 Idaho income taxes unless tax was withheld when the benefits were received. Among the benefits were Rebound Idaho grants, given to small businesses and the self-employed.

Federal stimulus payments are not subject to state income tax, the release said.

--Editing by Robert Rudinger.

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