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Idaho joins 12 other states in refusing unemployment tax break

All income earned in 2020, through unemployment or otherwise, will be taxed at regular rates
Published: Apr. 5, 2021 at 12:20 AM MDT
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TWIN FALLS, Idaho (KMVT/KSVT) — As part of the American Rescue Plan, states were given the opportunity to offer tax breaks on unemployment income earned during the 2020 fiscal year. Idaho is one of 13 states choosing not to offer such breaks.

The most recent COVID relief bill stated the first $10,200 of unemployment income could be deemed untaxable.

However, each state was given the chance to choose whether to allow for that tax break. According to the Idaho Tax Commission, every dollar earned through the unemployment system during 2020 will be taxed as regular income.

“Things like that is just hurting everybody,” says Jerome resident Richard DeForest. “The only people that are progressing are the big corporations. So, the small guys are the ones who are hurting the most.”

While the state did not offer this tax break, Idaho did extend the state tax deadline.

Both federal and state taxes are due May 17.

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