2005 Idaho Code - 63-3022A — DEDUCTION OF CERTAIN RETIREMENT BENEFITS

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3022A.  DEDUCTION OF CERTAIN RETIREMENT BENEFITS. (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.