The following is the description and function of the Federal worksheets and sections applicable to Idaho. All other worksheets section NOT specifically mentioned in this instruction guide apply only to the federal return and will be disregarded in completing the Idaho return.
Information entered on Basic Data worksheet is used to provide names, addresses and other applicable general information requested on the Idaho return. Refer to the General Information instructions to Idaho General worksheet, Basic Data section for additional items required on the Idaho return which are not entered on the federal Basic Data, General section.
Home State Code.This field indicates the resident state return to be processed. Any information in the return which is accompanied by a blank state code is assumed to apply only to the resident state return identified in the "Home State Code" Basic Data, General section. See the FS and State Code section of the federal instruction guide for further information on the use of state codes.
Type of Entity. The entry of an entity type code is required in order to process a return according to federal and Idaho tax laws. The following is a brief description of the Idaho treatment for each of the entity types available:
Complex/Simple Trusts. If a "Complex trust " or "Simple trust" is entered for federal purposes, Idaho Form 66 is produced for "trusts" with the same rules and requirements.
Decedent's Estate. If code "Decedents estate" is entered for federal purposes, Idaho Form 66 is produced for "estates" with the same rules and requirements.
Grantor Trust. A Grantor trust return is processed for single or multiple grantor trusts by entering an entity type of "Grantor trust". All amounts on Form 66 are suppressed and replaced with an information letter for each grantor. The grantor letters provide all income, deductions, credit and other information necessary to complete the grantor's Idaho Individual income tax returns.
Custodial Agency. The Custodial/Agency Account Tax Information Letter is processed by entering an entity type of "Custodial/agency account". These letters are available for single or multiple recipients. Form 66, pages 1 and 2 are suppressed entirely, but all other applicable supplemental forms and schedules are produced as needed to provide detail support.
Charitable and Split Interest Trusts. If an entity code of either "Charitable lead trust", "Charitable remainder annuity trust", "Charitable remainder unitrust", or "Pooled income fund" is entered to produce federal Forms 1041A and/or 5227, an Idaho Form 66 is produced for "trusts" following complex trust rules and requirements.
Initial, Final, and Amended Returns: Idaho Form 66 and Schedule K-1 report the same initial, final and amended status as the federal return. To report a different status for Idaho Form 66, use Common State worksheet, General Information section and enter "Y" or "N" for each status which differs from the federal status. The words "Initial", "Final" or "Amended" will print at the top of Idaho Form 66, and the corresponding box on each Idaho Schedule K-1 will be checked.
Electing Small Business Trust. Make an entry on General Basic Data worksheet for "ESBT" to process the S corporation portion of the return as a separate trust. Except for the rate of tax imposed on the separate trust, the treatment of an Electing Small Business Trust for Idaho purposes is the same as federal.
Extra Copies. Three copies of the Idaho return will be printed automatically. Additional copies can be ordered in sets of one federal and one Idaho including all K-1's. The option to produce a copy of Form 1041 for each beneficiary or grantor applies only to the federal return.
A copy of the federal return is provided for filing with the Idaho return.
Entries on the General - Return Options Worksheet, Preparers Information - Overrides
Unless otherwise noted, all federal options and features related to the grantor and custodial/agency letters produce similar results for Idaho purposes. Select form Grantor and Custodial Information worksheet, Grantor Print Options section to perform the following:
Grantor Trust Text. Select from the following messages to print on Form 66, page 1:
General - Letters and Filing Instructions - Filing Instructions and Cover Letter, Transmittal Letter, Special Paragraphs and General Letter Information Worksheets are available to produce filing instructions, a cover letter and/or transmittal letter containing filing information for the Idaho fiduciary tax return and application for extension of time to file. See the federal instruction guide for additional information on producing and customizing these letters.
To create a footnote for the state return only, enter "S" in the FS field and "ID" in the State Code field on General Notes worksheet, Federal and State Footnotes section. The default is to print a footnote with both the federal and state returns. The footnote will print as a statement after the state forms, in all copies of the return.
To create Schedule K-1 footnotes for the state return only, enter "S" in the FS field and "ID" in the state field on the Beneficiaries K-1 Foot notes worksheet - Schedule K-1 Footnotes section. The default is to print footnote with both the federal and state returns. If the footnote is for a specific beneficiary enter the beneficiary number. The beneficiary number entered on Schedule K-1 Footnotes section must match the beneficiary number on the Beneficiaries Information worksheet, General Information section "Mandatory Beneficiary Number".
To allocate an amount between beneficiaries, a distribution amount may be entered in the "Decimal column" to indicate which percentages on the Beneficiaries Information worksheet, General section or the Beneficiaries Special allocation worksheet, should be used. If the indicated allocation percentage is not entered in either of these two worksheets, then the ordinary income percentages will be used. If the beneficiary number and distribution code are not entered, the total amount will print with the footnote for all beneficiaries. Each Schedule K-1 footnote will print as a statement after the applicable Schedule K-1, in all copies of the return
Please refer to the Federal Instruction Guides for more information regarding this form.
Income overrides and adjustments entered on this worksheet apply to both federal and state tax returns. The use of FS and state code entries may be necessary to differentiate between federal and Idaho information, or to identify the states to which the entries apply when processing a multi-state return. Income overrides can be entered for more than one state by adding additional sheets of this worksheet.
Please refer to the Federal Instruction Guides for more information regarding this form.
Idaho allows an automatic six-month extension of time to file the Idaho fiduciary return. Form 41ES, Extension Of Time Payment - Idaho Business Income Tax, may be requested in the State column of Interview Form EXT-1 to accompany payment of tax required. Form 41ES can also be produced by using government view to key in data directly on the extension of time payment form.
The entries made on Other worksheet, Extension section in the federal column apply only to the federal return; the entries in the state column apply only to the Idaho return.
Form 41ES, Computation Of Tax Payment, is computed from the other information contained within the return. When the other information is incomplete, enter the necessary data in the overrides available on Other worksheet, Extension section.
To prevent Idaho from defaulting to the same "Initial", "Amended" or "Final" return status as the federal return, enter "Y" or "N" in the corresponding override fields on the Common State Information worksheet, State Information and Overrides section.
Idaho Form 111, Power of Attorney is produced using information entered on Other worksheet, 2848/8821 Power of Attorney section. Revocation of individual powers is accomplished directly on the government form.
See Also
Introduction to the Idaho Fiduciary Return
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