Is there a way to hide taxonomy terms based on the value of a boolean field?

I have defined a few taxonomy terms and want to hide some of them in a particular form display. These terms has a field "should_hide", which is set to True.

What is the best way to do this? I am thinking of adding a field in Widget Setting to specify which term should be hidden from the generated dropdown list. Are there better, or built in, ways to do this?