MILLIONS of dollars will go back to Americans’ pockets – and cash will go to the 1.9 million people living in Idaho.
Idaho state legislators have passed a bill that provides $600 million in tax cuts and breaks.
The bill is expected to be signed and approved by the governor of Idaho.
Republican lawmakers said it was the largest tax cut in the state’s history.
It will also offer $350 million in one-time discounts.
This is the second year in a row Idaho taxpayers will receive the money.
The rebates will be funded by the state’s $1.9 billion budget surplus.
The bill is controversial as critics argue that the top earners are getting the biggest tax cuts.
New Idaho Tax Framework
Under the new bill, Idaho would impose between five and four tax brackets. Taxable income is calculated for a year.
- Individuals with taxable income less than $1,000 will be taxed 1%
- Individuals with taxable income between $1,000 and $3,000 will be taxed $10, plus 3% of amounts over $1,000
- Individuals with taxable income between $3,000 and $5,000 will be taxed $70, plus 4.5% of amounts over $3,000
- Individuals with taxable income over $5,000 will be taxed $160, plus 6% of amounts over $5,000
How much is your discount?
Idaho residents will receive 12% of taxes paid in 2019 or $75 each for taxpayers and dependents, whichever is greater.
A family of four will be eligible for a discount of at least $300.
The US Census Bureau says the median Idaho household income in 2019 was about $66,000.
A family of four with an income of $40,000 will receive a $312 discount.
A family of four with an income of $60,000 will receive a $468 discount.
A family of four with an income of $200,000 will receive a discount of $1,560.
Who is eligible for the discount?
Individual discounts will be available to those who have been an Idaho resident all year and have applied Income Tax in both 2020 and 2021.
The discount will count towards your 2020 earnings.
You also need to submit income tax return or apply for a grocery tax credit during that time.
Residents can still file personal income tax returns.
Those who are not required to file a tax return can still file a grocery credit refund through Idaho Income Tax Website.
The grocery credit is $100 per person or $120 for those 65 and older.
We explain when federal income tax due in 2022.
In addition, we have a category What you need to file a tax return.
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https://www.the-sun.com/money/4614865/idaho-households-tax-rebates-2022/ Over a million households get up to $1,000 in tax relief this year