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Worthless Securities Deduction in Idaho 2026

Calculate your worthless securities deduction tax savings in Idaho. With Idaho's 5.8% top state tax rate, your combined savings are higher.

Idaho Tax Overview

State Income Tax
5.8%
flat
Sales Tax
6%
avg combined: 6.02%
Property Tax Rate
0.63%
Median Income
$65,988

Flat 5.8% since 2023. Uses federal taxable income. 60% Idaho capital gains exclusion. Grocery credit $120/person.

Idaho Income Tax Brackets (Single)

5.8%
$0 +
Your bracket
$1,390
Est. Total Savings
No Limit
Max Deduction
Both Methods
Deduction Type
27.8%
Combined Tax Rate

Worthless Securities Deduction Savings Calculator for Idaho

$
$

Federal Savings

$1,100

22% bracket

Idaho State

$290

5.8% rate

Total Savings

$1,390

27.8% combined

At a 27.8% combined tax rate in Idaho, every $1,000 in deductions saves you $278 in taxes.

Savings by Tax Bracket in Idaho

10%
$790
12%
$890
22%
$1,390
24%
$1,490
32%
$1,890
35%
$2,040
37%
$2,140

Includes 5.8% Idaho state tax on top of federal savings.

Eligibility Requirements

Investors holding securities that became completely worthless during the tax year

  • 1Security must be completely worthless
  • 2Treated as sold on last day of tax year
  • 37-year statute of limitations applies
  • 4Can be capital or ordinary loss depending on holding

Idaho residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.8%.

Common Mistakes to Avoid

  • !Not claiming in the correct year of worthlessness
  • !Missing the extended 7-year refund claim period
  • !Confusing partial decline with total worthlessness
  • !Forgetting to claim the deduction on your Idaho state return (missing up to 5.8% additional savings)

Idaho Filing Tips

Federal standard deduction automatically applies. Maximize the 60% capital gains exclusion on Idaho-sourced investments. Use the grocery credit. Retirement income is fully taxable.

Required Tax Forms

Form 8949Schedule D

File these forms with your federal tax return to claim the worthless securities deduction. Idaho may require additional state-specific forms.

Other Tax Deductions in Idaho

Capital Loss Deduction

Investment

~$834
est. savings

Tax-Loss Harvesting

Investment

~$6,318
est. savings

Investment Interest Expense

Investment

~$1,895
est. savings

Qualified Dividend Tax Rate

Investment

~$3,791
est. savings

Opportunity Zone Investment

Investment

~$12,636
est. savings

1031 Like-Kind Exchange

Investment

~$37,909
est. savings

QSBS Exclusion (Section 1202)

Investment

~$126,364
est. savings

Installment Sale

Investment

~$10,109
est. savings

Worthless Securities Deduction in Neighboring States

Montana

5.9% top rate (flat)

~$3,805
+2,415 vs Idaho

Wyoming

No state income tax

~$3,000
+1,610 vs Idaho

Utah

4.65% top rate (flat)

~$3,634
+2,244 vs Idaho

Nevada

No state income tax

~$3,000
+1,610 vs Idaho

Oregon

9.9% top rate (progressive)

~$4,350
+2,960 vs Idaho

Washington

No state income tax

~$3,000
+1,610 vs Idaho

Tax Calculators for Idaho Cities

BoiseMeridianNampaIdaho FallsCaldwellPocatelloCoeur d'AleneTwin Falls

Calculate Your Full Tax Savings in Idaho

Use our free tax calculators to optimize your entire tax return for Idaho.

Income Tax CalculatorIdaho Income TaxFull Worthless Securities Deduction Guide

Frequently Asked Questions

How much can I save with the Worthless Securities Deduction in Idaho?

In Idaho, the worthless securities deduction can save you an estimated $1,390 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $290 in Idaho state tax savings at the 5.8% marginal rate. The national average savings is $3,000/year.

What is the Idaho state income tax rate?

Idaho has a flat income tax system with a top rate of 5.8%. Flat 5.8% since 2023. Uses federal taxable income. 60% Idaho capital gains exclusion. Grocery credit $120/person.

Who qualifies for the Worthless Securities Deduction in Idaho?

Investors holding securities that became completely worthless during the tax year. The eligibility requirements are the same whether you live in Idaho or another state, as this is a federal tax deduction. However, your total savings will vary based on Idaho's 5.8% top state tax rate.

What tax forms do I need to claim the Worthless Securities Deduction in Idaho?

To claim the worthless securities deduction, you need to file Form 8949 and Schedule D with your federal return. Idaho residents should also check if the state allows this deduction on their state return for additional savings of up to 5.8%. Filing status affects your deduction limits and tax bracket.

Is the Worthless Securities Deduction better in Idaho than in states without income tax?

Yes, Idaho residents benefit more because the state's 5.8% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.8% means more savings per dollar deducted.

What is the standard deduction in Idaho for 2026?

Idaho's standard deduction is $14,600 for single filers and $29,200 for married filing jointly. Federal standard deduction automatically applies. Maximize the 60% capital gains exclusion on Idaho-sourced investments. Use the grocery credit. Retirement income is fully taxable.

Related Calculators

Capital Loss Deduction in Idaho

Avg savings: $660/year

Tax-Loss Harvesting in Idaho

Avg savings: $5,000/year

Investment Interest Expense in Idaho

Avg savings: $1,500/year

Qualified Dividend Tax Rate in Idaho

Avg savings: $3,000/year

Opportunity Zone Investment in Idaho

Avg savings: $10,000/year

1031 Like-Kind Exchange in Idaho

Avg savings: $30,000/year