Idaho Grocery Tax Credit

All Idahoans Can Now Receive the Grocery Tax Credit

Under a new revision in the Idaho Tax Law, citizens under the age of 65 who could not previously receive the Grocery Tax Credit because of income restrictions may now apply for it by using Tax Form 40. Senior citizens age 65 and older will use Tax Form 24. (You have three years to file – first year 2008)

These instructions are for non-senior individuals or families who earn less than the amount that requires them to file an income tax return. If you do not know whether you need to file an income tax return, use the information on page 2 of the Idaho Tax Form 40 Instructions to find out.

WHAT FORMS DO YOU NEED?

Idaho Tax Form 40 & Instructions

• Complete beginning lines requiring your name, address and social security number. For items 1 through 5, check whichever box is appropriate.
• Fill in Line 6 with the names of all qualified dependants.
  (Use Form 39R section F to include additional dependants)
• Skip lines 7 and 8.
• Write NRF on line 9. This means that you are “Not Required to File” an income tax return.
• Skip lines 10 – 13. If you or your spouse are age 65 or older, complete line 14a.
• Cross through the $10 on line 35, Permanent Building Fund, and write NRF again.
• Use Grocery Credit Worksheet instructions on page 10 of the Form 40 instructions to figure your credit.If you received Food Stamps for any month or were incarcerated for any month you must reduce the qualified months by that number. For example: if you received Food Stamps for three months then you would have 9 qualified months to place on the worksheet. Put in the number of qualified months for the credit. In most cases this will be 12 months. Do the same for your spouse (if appropriate) and all dependants (if appropriate). Be sure to include any dependents listed on Form 39R. Each line will end in a dollar amount for the credit allowed for that person.
• The last line of the worksheet calls for a total of all credits. Write this total amount of the credit you are requesting on line 45 of Form 40.
• In the sub lines under line 45 there is a place to donate your credit if you wish. Do NOT check this box if you want a credit refund.
• Write the amount from line 45 again on line 50.
• Be sure to sign and date your tax form (and also have your spouse sign, if appropriate) before sending the form to the Idaho State Tax Commission. You have three years to apply for this credit.

If you have questions or need further assistance, you can find free help by calling 2-1-1, 1-800-926-2588, or at http://www.idahocommunityaction.org/CEI.html