Updated October 19, 2026. Quick answer: Line 8 of Part B on Idaho Form 39R is the retirement benefits deduction. Lines 8a to 8f start with a maximum for your filing status, reduce it by railroad retirement and Social Security benefits, and then take the smaller of that figure and your qualifying retirement benefits. The result is added into the subtractions total that goes to Form 40.
What this form does
Form 39R is the “Resident Supplemental Schedule 2025”, and Part B lists subtractions from income. Line 8 reads “Retirement benefits deduction. See instructions for qualifications.” The instructions introduce it with “You might be able to deduct some of the qualifying retirement benefits and annuities you receive.”
For the broader picture, see Idaho retirement taxes and whether Idaho taxes pensions; Idaho treatment of 401(k) and IRA withdrawals covers a source the line does not name directly.
Who it applies to
For retirees who are not covered by the special rules for other groups, the instructions describe a two-part test: “The Idaho Retirement Benefits Deduction for all other retirees has a two-part qualification.” “You must qualify for both parts to receive this deduction.”
Part One is about age, disability and filing status: “The recipients must be at least age 65 or be classified as disabled and be at least age 62.” “If you’re married, you can’t claim this deduction if you file separately.”
Part Two is about which plan paid the benefit: “The recipients must meet the requirements in Part One, and their qualified retirement benefits must be one of the following:” The instructions then list, among others, “Retirement annuities paid by the U.S. Civil Service Retirement System (CSRS), the Foreign Service Retirement and Disability System (FSRDS), or the offset programs of these two systems.” and add “Retirement annuities paid to a retired federal employee under the Federal Employees Retirement System (FERS) don’t qualify for the deduction.”
Two Idaho public plans are named as well: “Retirement benefits paid by the Public Employee Retirement System of Idaho (PERSI) relating to the Firefighters Retirement Fund.” and “Retirement benefits paid from the Police Retirement Fund that no longer admits new members”. “Benefits paid out of the PERSI Base Plan don’t qualify for the deduction.”
The lines, one by one
| Line | What the form says |
|---|---|
| Part B heading | “B. Subtractions. See instructions, page 29.” |
| Line 8 | “Retirement benefits deduction. See instructions for qualifications.” |
| Line 8a | “If single, enter $48,216 or if married filing jointly, enter $72,324” |
| Line 8b | “Federal Railroad Retirement benefits received” |
| Line 8c | “Social Security benefits received” |
| Line 8d | “Line 8a minus lines 8b and 8c. If less than zero, enter zero” |
| Line 8e | “Qualifying retirement benefits included in federal income” |
| Line 8f | “Enter the smaller of line 8d or 8e here” |
| Instructions, line 8 | “You might be able to deduct some of the qualifying retirement benefits and annuities you receive.” |
| Instructions, line 8a | “The retirement benefits you and your spouse received under the federal Social Security Act and the federal Railroad Retirement Act further reduce these maximum amounts.” “The amount deducted can’t be more than the amount of qualified benefits included in federal income.” |
The instructions give separate guidance for lines 8b and 8c on which amounts to enter. The retirement benefits on those lines are reported on forms like the ones in 1099-R boxes explained and on Form 1040 lines 5a and 5b.
The figures the form prints
The line 8a amounts for the year sit in one line of the form: “If single, enter $48,216 or if married filing jointly, enter $72,324”. The instructions repeat the limit idea in a sentence: “The amount deducted can’t be more than the amount of qualified benefits included in federal income.”
Where the result goes next
Line 8f joins the subtractions in Part B. The total line says “Total subtractions. Add lines 1 through 4, 5e through 7, and 8f through 23.” “Enter here and on Form 40, line 10”.
A worked example
Illustration, not a state example. Suppose a single filer uses the $48,216 amount on line 8a, has no railroad benefits on line 8b, has $20,000 (invented, for the computation) of Social Security benefits on line 8c, and has $15,000 (invented, for the computation) of qualifying retirement benefits on line 8e. Line 8d is $48,216 minus $20,000 (invented, for the computation), which is $28,216 (computed). Line 8f is the smaller of $28,216 (computed) and $15,000 (invented, for the computation), which is $15,000 (computed).
Edition and line numbers
This page reads the Idaho Form 39R, Resident Return (2025) for tax year 2025, the current file the Idaho State Tax Commission served on 2026-10-19. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Entering the full maximum as the deduction. The form says “Enter the smaller of line 8d or 8e here”, so qualifying benefits can limit it.
- Claiming the deduction as a married person filing separately. The instructions say “If you’re married, you can’t claim this deduction if you file separately.”
- Counting federal employee annuities under FERS. The instructions say “don’t qualify for the deduction” for that system.
Related: Idaho retirement taxes, whether Idaho taxes pensions, Idaho treatment of 401(k) and IRA withdrawals, Form 1040 lines 5a and 5b, and 1099-R boxes explained.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement tax planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with Idaho retirement income taxes
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Idaho Form 39R, Resident Return (2025), Idaho State Tax Commission: tax.idaho.gov
- Related official page (not quoted): Idaho State Tax Commission, Idaho Retirement Benefits Deduction: tax.idaho.gov
Read from the state revenue documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.