Idaho State Statutes - Idaho Attorney Directory

(a) An amount
specified by subsection (b) of this section of the following retirement
benefits may be deducted by an individual from taxable income if such
individual has either attained age sixty-five (65) years, or has attained age
sixty-two (62) years and is classified as disabled:
(1) Retirement annuities paid by the United States of America to a
retired civil service employee or the unremarried widow of a retired civil
service employee.
(2) Retirement benefits paid from the firemen's retirement fund of the
state of Idaho to a retired fireman or the unremarried widow of a retired
fireman.
(3) Retirement benefits paid from the policemen's retirement fund of a
city within this state to a retired policeman or the unremarried widow of
a retired policeman.
(4) Retirement benefits paid by the United States of America to a retired
member of the military services of the United States or the unremarried
widow of such member.
(b) The amount of retirement benefits that may be deducted from taxable
income shall be an amount not in excess of maximum retirement benefits under
the social security act, as amended, on the date on which this act is passed
and approved, including adjustments to be made based upon consumer price index
adjustments provided in section 215 of the social security act. The state tax
commission shall ascertain benefit changes made in accordance with the social
security act and publish the appropriate deduction amounts provided by this
section reflecting such changes annually. Maximum retirement benefits under
the social security act shall mean:
(1) In the case of a taxpayer who files a joint return with his spouse
for the tax year, an amount equal to the maximum social security benefits
payable for the tax year to a person attaining full retirement age in the
tax year who has earned the maximum earnings creditable under social
security for the years used in the computation of his benefits, and whose
spouse has no social security benefits except those payable on his record
of earnings.
(2) In the case of a taxpayer who is not married, an amount equal to
maximum social security benefits payable for the tax year to a person
attaining full retirement age in the tax year who has earned the maximum
earnings creditable under social security for the years used in the
computation of his benefits.
(3) In the case of an unremarried widow, an amount equal to the maximum
social security benefits payable for the tax year to a widow attaining
full retirement age in the tax year who has no social security benefits
except those to which she is entitled on her deceased husband's record and
whose husband had received no reduced retirement benefits prior to his
death and whose husband had earned the maximum earnings creditable under
social security for the years used in the computation of his benefits
under social security.
(4) Maximum retirement benefits shall, in every case, take into
consideration and be adjusted to reflect adjustments that would be made to
such amounts had they been received as social security benefits as the
result of the receipt of earnings in excess of earnings limitations. The
terms in this paragraph are those defined in the social security act.
(5) Taxpayers not described in paragraphs (1), (2), (3) and (4) of this
subsection may not deduct any amount of retirement benefits under this
section.
(c) The total deduction under this section may not exceed the total
amount of retirement benefits or annuities which are described in subsection
(a) of this section and which are included in the taxpayer's gross income in
the tax year. If the taxpayer or the taxpayer's spouse receives retirement
benefits under the federal railroad retirement act or the federal social
security act in the tax year, then the amount of any retirement annuities
computed under subsection (b) of this section shall be reduced by the amount
of such federal railroad retirement act and federal social security act
retirement benefits received by either the taxpayer or the taxpayer's spouse,
and the lesser of the amount so computed or the total amount of retirement
benefits or annuities which are described in subsection (a) of this section
and which are included in the taxpayer's gross income shall constitute the
allowable deduction. Furthermore, the allowable deduction as calculated under
this section may be subject to additional limitations under section
63-3026A(6), Idaho Code, and the rules promulgated thereunder.
(d) As used in this section, the word "widow" shall include a widower.
(e) As used in this section, the word "disabled" shall mean an individual
who is a disabled person described in section 63-701, Idaho Code.

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