reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.57 - Installment Sales by Taxpayers Using the Accrual Method of Accounting

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2000, and
				  prior to January 1, 2002, taxpayers who use the accrual method of accounting
				  and who have sales or exchanges of property that they reported on the
				  installment method for federal income tax purposes must report the total amount
				  of the gain or loss from the transaction in the tax year of the sale or
				  exchange pursuant to Section 453 of the Internal Revenue Code as amended up to
				  and including January 1, 2000.
EXAMPLE 1. Taxpayer Jones uses the accrual method of
				  accounting for reporting income. In 2001, Mr. Jones sold farmland he had held
				  for eight years for $200,000 which resulted in a capital gain of $50,000. For
				  federal income tax purposes, Mr. Jones elected to report the transaction on the
				  installment basis, where he reported $12,500 of the gain on his 2001 federal
				  return and will report capital gains of $12,500 on each of his federal returns
				  for the 2002, 2003 and 2004 tax years.
However, for Iowa income tax purposes, Mr. Jones must report
				  on his 2001 Iowa return the entire capital gain of $50,000 from the land sale.
				  Although Taxpayer Jones must report a capital gain of $12,500 on each of his
				  federal income tax returns for 2002, 2003 and 2004, from the installment sale
				  of the farmland in 2001, he will not have to include the installments of
				  $12,500 on his Iowa income tax returns for those three tax years because Mr.
				  Jones had reported the entire capital gain of $50,000 from the 2001 transaction
				  on his 2001 Iowa income tax return.
EXAMPLE 2. Taxpayer Smith uses the accrual method of
				  accounting for reporting income. In 2002, Mr. Smith sold farmland he had held
				  for eight years for $500,000 which resulted in a capital gain of $100,000. For
				  federal income tax purposes, Mr. Smith elected to report the transaction on the
				  installment basis, where he reported $20,000 of the gain on his 2002 federal
				  return and will report the remaining capital gains on federal returns for the
				  four subsequent tax years. Because this installment sale occurred in 2002, Mr.
				  Smith shall report $20,000 of the capital gain on his Iowa income tax return
				  for 2002 and will report the balance of the capital gains from the installment
				  sale on Iowa returns for the next four tax years, the same as reported on his
				  federal returns for those years.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2002 Iowa
				  Acts, House File 2116.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.58 - Exclusion of Distributions From Retirement Plans by National Guard Members and Members of Military Reserve Forces of the United States

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2002, members
				  of the Iowa national guard or members of military reserve forces of the United
				  States who are ordered to national guard duty or federal active duty are not
				  subject to Iowa income tax on the amount of distributions received during the
				  tax year from qualified retirement plans of the members to the extent the
				  distributions were taxable for federal income tax purposes. In addition, the
				  members are not subject to state penalties on the distributions even though the
				  members may have been subject to federal penalties on the distributions for
				  early withdrawal of benefits. Because the distributions described above are not
				  taxable for Iowa income tax purposes, a national guard member or armed forces
				  reserve member who receives a distribution from a qualified retirement plan may
				  request that the payer of the distribution not withhold Iowa income tax from
				  the distribution.
This rule is intended to implement 2011 Iowa Code Supplement
				  section 422.7 as amended by 2012 Iowa
				  Acts, Senate File 2097.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.61 - Exclusion of Active Duty Pay of National Guard Members and Armed Forces Military Reserve Members for Service Under Orders for Operation Iraqi Freedom, Operation Noble Eagle, Operation Enduring Freedom or Operation New Dawn

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2003, active
				  duty pay received by national guard members and armed forces reserve members is
				  excluded to the extent the income is included in federal adjusted gross income
				  and to the extent the active duty pay is for service under military orders for
				  Operation Iraqi Freedom, Operation Noble Eagle or Operation Enduring Freedom.
				  For tax years beginning on or after January 1, 2010, active duty pay received
				  by national guard members and armed forces reserve members is excluded to the
				  extent the income is included in federal adjusted gross income and to the
				  extent the active duty pay is for service under military orders for Operation
				  New Dawn. National guard members and military reserve members receiving active
				  duty pay on or after January 1, 2003, but before January 1, 2011, for service
				  not covered by military orders for one of the operations specified above are
				  subject to Iowa income tax on the active duty pay to the extent the active duty
				  pay is included in federal adjusted gross income. For active duty pay received
				  on or after January 1, 2011, see rule
				  701-40.76 (422). An example of a
				  situation where the active duty pay may not be included in federal adjusted
				  gross income is when the active duty pay was received for service in an area
				  designated as a combat zone or in an area designated as a hazardous duty area
				  so the income may be excluded from federal adjusted gross income. That is, if
				  an individual's active duty military pay is not subject to federal income tax,
				  the active duty military pay will not be taxable on the individual's Iowa
				  income tax return.
National guard members and military reserve members who are
				  receiving active duty pay for service on or after January 1, 2003, that is
				  exempt from Iowa income tax, may complete an IA W-4 Employee Withholding
				  Allowance Certificate and claim exemption from Iowa income tax for active duty
				  pay received during the time they are serving on active duty pursuant to
				  military orders for Operation Iraqi Freedom, Operation Noble Eagle, Operation
				  Enduring Freedom or Operation New Dawn.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2011 Iowa
				  Acts, House File 652.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.62 - Deduction for Overnight Expenses Not Reimbursed for Travel Away From Home of More Than 100 Miles for Performance of Service as a Member of the National Guard or Armed Forces Military Reserve

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer may subtract, in computing net income, the costs
				  not reimbursed that were incurred for overnight transportation, meals and
				  lodging expenses for travel away from the taxpayer's home more than 100 miles,
				  to the extent the travel expenses were incurred for the performance of services
				  on or after January 1, 2003, by the taxpayer as a national guard member or an
				  armed forces military reserve member. The deduction for Iowa tax purposes is
				  the same that is allowed for federal income tax purposes.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2005 Iowa
				  Acts, House File 186.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.63 - Exclusion of Income From Military Student Loan Repayments

Current through Register Vol. 47, No. 3, July 24, 2024
Individuals serving on active duty in the national guard,
				  armed forces military reserve or the armed forces of the United States may
				  subtract, to the extent included in federal adjusted gross income, income from
				  military student loan repayments made on or after January 1, 2003.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2003 Iowa
				  Acts, House File 674.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.64 - Exclusion of Death Gratuity Payable to an Eligible Survivor of a Member of the Armed Forces, Including a Member of a Reserve Component of the Armed Forces Who Has Died While on Active Duty

Current through Register Vol. 47, No. 3, July 24, 2024
An eligible survivor of a member of the armed forces,
				  including a member of a reserve component of the armed forces, who has died
				  while on active duty may subtract, to the extent included in federal adjusted
				  gross income, a gratuity death payment made to the eligible survivor of a
				  member of the armed forces who died while on active duty after September 10,
				  2001. This exclusion applies to a gratuity death payment made to the eligible
				  survivor of any person in the armed forces or a reserve component of the armed
				  forces who died while on active duty after September 10, 2001.
The purpose of the death gratuity is to provide a cash
				  payment to assist a survivor of a deceased member of the armed forces to meet
				  financial needs during the period immediately following a service member's
				  death and before other survivor benefits, if any, become available.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2003 Iowa
				  Acts, House File 674.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.66 - Deduction for Certain Unreimbursed Expenses Relating to a Human Organ Transplant

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2005, a
				  taxpayer, while living, may subtract up to $10,000 in unreimbursed expenses
				  that were incurred relating to the taxpayer's donation of all or part of a
				  liver, pancreas, kidney, intestine, lung or bone marrow to another human being
				  for immediate human organ transplantation. The taxpayer can claim this
				  deduction only once, and the deduction can be claimed in the year in which the
				  transplant occurred. The unreimbursed expenses must not be compensated by
				  insurance to qualify for the deduction.
The unreimbursed expenses which are eligible for the
				  deduction include travel expenses, lodging expenses and lost wages. If the
				  deduction is claimed for travel expenses and lodging expenses, these expenses
				  cannot also be claimed as an itemized deduction for medical expenses under
				  Section 213(d) of the Internal Revenue Code for Iowa tax purposes. The
				  deduction for lost wages does not include any sick pay or vacation pay
				  reimbursed by an employer.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2005 Iowa
				  Acts, House File 801.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.67 - Deduction for Alternative Motor Vehicles

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2006, but
				  beginning before January 1, 2015, a taxpayer may subtract $2,000 for the cost
				  of a clean fuel motor vehicle if the taxpayer was eligible to claim for federal
				  tax purposes the alternative motor vehicle credit under Section 30B of the
				  Internal Revenue Code for this motor vehicle.
The vehicles eligible for this deduction include new
				  qualified fuel cell motor vehicles, new advanced lean burn technology motor
				  vehicles, new qualified hybrid motor vehicles, qualified plug-in electric drive
				  motor vehicles and new qualified alternative fuel vehicles. The advanced lean
				  burn technology, qualified hybrid and qualified alternative fuel vehicles must
				  be placed in service before January 1, 2011, to qualify for the deduction. The
				  qualified plug-in electric drive motor vehicles must be placed in service
				  before January 1, 2012, to qualify for the deduction. The qualified fuel cell
				  motor vehicles must be placed in service before January 1, 2015, to qualify for
				  the deduction. A taxpayer must claim a credit on the taxpayer's federal income
				  tax return on federal Form 8910 to claim the deduction on the Iowa
				  return.
This rule is intended to implement Iowa Code section
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.68 - Injured Veterans Grant Program

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For tax years beginning on or after
				January 1, 2006, a taxpayer who receives a grant under the injured veterans
				grant program provided in 2006 Iowa Acts, Senate File 2312, section 1, may
				subtract, to the extent included in federal adjusted gross income, the amount
				of the grant received. The injured veterans grant program is administered by
				the Iowa department of veterans affairs, and grants of up to $10,000 are
				provided to veterans who are residents of Iowa and are injured in the line of
				duty in a combat zone or in a zone where the veteran was receiving hazardous
				duty pay after September 11, 2001.
(2) For tax years beginning on or after
				January 1, 2006, a taxpayer may subtract, to the extent not otherwise deducted
				in computing adjusted gross income, the amounts contributed to the department
				of veterans affairs for the purpose of providing grants under the injured
				veterans grant program established in 2006 Iowa Acts, Senate File 2312, section
				1. If a deduction is claimed for these amounts contributed to the injured
				veterans grant program, this deduction cannot also be claimed as an itemized
				deduction for charitable contributions under Section 170 of the Internal
				Revenue Code for Iowa tax purposes.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2006 Iowa
				  Acts, Senate File 2312.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.71 - Exclusion for Certain Victim Compensation Payments

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2007, a taxpayer may exclude from Iowa individual income tax any income
				  received from certain victim compensation payments to the extent this income
				  was reported on the federal income tax return. The amounts which may be
				  excluded from income include the following:
1. Victim compensation awards paid under the
				victim compensation program administered by the department of justice in
				accordance with Iowa Code section
				915.81, and received by the
				taxpayer during the tax year.
2.
				Victim restitution payments received by a taxpayer during the tax year in
				accordance with Iowa Code chapter 910 or 915.
3. Damages awarded by a court, and received
				by a taxpayer, in a civil action filed by a victim against an offender during
				the tax year.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2007 Iowa
				  Acts, Senate File 70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.72 - Exclusion of Vietnam Conflict Veterans Bonus

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For tax years beginning on or after
				January 1, 2007, but before January 1, 2013, a taxpayer who received a bonus
				under the Vietnam Conflict veterans bonus program may subtract, to the extent
				included in federal adjusted gross income, the amount of the bonus received.
				The Vietnam Conflict veterans bonus is administered by the Iowa department of
				veterans affairs, and bonuses of up to $500 are awarded to residents of Iowa
				who served on active duty in the armed forces of the United States between July
				1, 1973, and May 31, 1975.
(2) For
				tax years beginning on or after January 1, 2008, but before January 1, 2013, a
				taxpayer who received a bonus under the Vietnam Conflict veterans bonus program
				may subtract, to the extent included in federal adjusted gross income, the
				amount of the bonus received. The Vietnam Conflict veterans bonus is
				administered by the Iowa department of veterans affairs. Bonuses of up to $500
				are awarded to veterans who were inducted into active duty service from the
				state of Iowa, who served on active duty in the United States armed forces
				between July 1, 1958, and May 31, 1975, and who have not received a bonus for
				that service from Iowa or another state.
This rule is intended to implement 2011 Iowa Code Supplement
				  section 422.7 as amended by 2012 Iowa
				  Acts, Senate File 2038.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.73 - Exclusion for Health Care Benefits of Nonqualified Tax Dependents

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2009, but beginning before January 1, 2011, a taxpayer may exclude from Iowa
				  individual income tax the income reported from including nonqualified tax
				  dependents on the taxpayer's health care plan, to the extent this income was
				  reported on the federal income tax return.
(1)
Term of coverage.
Iowa
				Code section 509A.13B provides that group
				insurance, group insurance for public employees, and individual health
				insurance policies or contracts permit continuation of existing coverage for an
				unmarried child of an insured or enrollee, if the insured or enrollee so
				elects. If the election is made, it will be in effect through the policy
				anniversary date on or after the date the child marries, ceases to be a
				resident of Iowa, or attains the age of 25, whichever occurs first, so long as
				the unmarried child maintains full-time status as a student in an accredited
				institution of postsecondary education. These children can be included on the
				health care coverage even though they are not claimed as a dependent on the
				federal and Iowa income tax returns.
(2)
Federal treatment.
Section 105(b) of the Internal Revenue Code provides that the income reported
				from including dependents on the taxpayer's health care coverage is exempt from
				federal income tax. However, income is reported for federal income tax purposes
				on the value of the health care coverage of children who are not claimed as
				dependents on the taxpayer's federal and Iowa income tax returns for tax years
				beginning on or after January 1, 2009, but beginning before January 1, 2011.
				The amount of income included on the federal income tax return is allowed to be
				excluded on the Iowa return. For tax years beginning on or after January 1,
				2011, income is no longer reported on the federal income tax return on the
				value of health care coverage of children who are not claimed as dependents and
				who have not attained age 27 as of the end of the tax year; therefore, no
				adjustment is required on the Iowa return.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2011 Iowa
				  Acts, Senate File 512.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.74 - Exclusion for Americorps Segal Education Award

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2010, a taxpayer may exclude from Iowa individual income tax any amount of
				  AmeriCorps Segal Education Award to the extent the education award was reported
				  as income on the federal income tax return. The AmeriCorps Segal Education
				  Award is available to individuals who complete a year of service in the
				  AmeriCorps program. The education award can be used to pay education costs at
				  institutions of higher learning, for educational training, or to repay
				  qualified student loans.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2009 Iowa
				  Acts, Senate File 482.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.75 - Exclusion of Certain Amounts Received From Iowa Veterans Trust Fund

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2010, a
				  taxpayer may subtract, to the extent included in federal adjusted gross income,
				  the amounts received from the Iowa veterans trust fund related to travel
				  expenses directly related to follow-up medical care for wounded veterans and
				  their spouses and amounts received related to unemployment assistance during a
				  period of unemployment due to prolonged physical or mental illness or
				  disability resulting from military service.
This rule is intended to implement Iowa Code section
				  422.7 as amended by 2010 Iowa
				  Acts, House File 2532.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.76 - Exemption of Active Duty Pay for Armed Forces, Armed Forces Military Reserve, or the National Guard

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2011, all pay
				  received from the federal government for military service performed while on
				  active duty status in the armed forces, armed forces military reserve, or the
				  national guard is excluded to the extent the pay was included in federal
				  adjusted gross income.
(1) Definition
				of active duty personnel. Active duty personnel who qualify for the exclusion
				include the following:
a. Active duty members
				of the regular armed forces, which include the Army, Navy, Marines, Air Force
				and Coast Guard of the United States.
b. Members of a reserve component of the
				Army, Navy, Marines, Air Force and Coast Guard who are on an active duty status
				as defined in Title 10 of the United States Code.
c. Members of the national guard who are in
				an active duty status as defined in Title 10 of the United States
				Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.77 - Exclusion of Biodiesel Production Refund

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer may exclude, to the extent included in federal
				  adjusted gross income, the amount of the biodiesel production refund described
				  in rule 701-250.1 (423).
This rule is intended to implement Iowa Code section
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.78 - Allowance of Certain Deductions for 2008 Tax Year

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For the tax year beginning on or after
				January 1, 2008, but before January 1, 2009, the following deductions provided
				in the federal Emergency Economic Stabilization Act of 2008, Public Law No.
				110-343, will be allowed on the Iowa individual income tax return:
a. The deduction for certain expenses of
				elementary and secondary school teachers allowed under Section 62(a)(2)(D) of
				the Internal Revenue Code.
b. The
				deduction for qualified tuition and related expenses allowed under Section 222
				of the Internal Revenue Code.
c.
				The deduction for disaster-related casualty losses allowed under Section 165(h)
				of the Internal Revenue Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.79 - Special Filing Provisions Related to 2010 Tax Changes

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For the tax year beginning on or after
				January 1, 2010, but before January 1, 2011, the following adjustments will be
				allowed on the Iowa individual income tax return:
a. The deduction for certain expenses of
				elementary and secondary school teachers allowed under Section 62(a)(2)(D) of
				the Internal Revenue Code.
b. The
				deduction for qualified tuition and related expenses allowed under Section 222
				of the Internal Revenue Code.
c.
				The increased expensing allowance authorized under Section 179(b) of the
				Internal Revenue Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.80 - Exemption for Military Retirement Pay

Current through Register Vol. 47, No. 3, July 24, 2024
Retirement pay received by taxpayers from the federal
				  government for military service performed in the armed forces, armed forces
				  reserves, or national guard is exempt from state income tax. In addition,
				  amounts received by a surviving spouse, former spouse, or other beneficiary of
				  a taxpayer who served in the armed forces, armed forces reserves, or national
				  guard under the Survivor Benefit Plan are also exempt from state income tax.
				  The retirement pay is only deductible to the extent it is included in the
				  taxpayer's federal taxable income.
(1)
Coordination with pension exclusion.
The exclusion of
				retirement pay is in addition to the exclusion, provided in rule
				701-302.47 (422), of pensions
				and other retirement benefits for disabled individuals, individuals who are 55
				years of age or older, surviving spouses and survivors. In addition, taxpayers
				who do not qualify for the exclusion in rule
				701-302.47 (422) and who receive
				retirement pay under federal law that combines retirement pay for both
				uniformed service and the federal civil service retirement system or federal
				employees' retirement system must prorate the retirement pay based on years of
				service.
Example: A single taxpayer who is not disabled and is 50
				  years of age receives $60,000 as a federal pension during the tax year. The
				  taxpayer has 20 years of military service and 10 years of civilian employment
				  with the federal government. The military retirement pay portion is $40,000 (20
				  years, divided by 30 years, multiplied by $60,000). The taxpayer can exclude
				  $40,000 of military retirement pay. The taxpayer may not exclude the $20,000 of
				  civilian retirement pay since it does not qualify for the exclusion in rule
				  701-302.47 (422) because the
				  taxpayer is under 55 years of age and is not disabled.
(2)
Coordination with filing
				threshold and alternate tax.
The military retirement pay is excluded
				from the calculation of income used to determine whether an Iowa income tax
				return is required to be filed pursuant to 701-subrules 301.1(1) and 301.5(10)
				through 301.5(13). In addition, the military retirement pay is excluded from
				the calculation of the special tax computation for all low-income taxpayers
				except single taxpayers pursuant to rule
				701-301.9 (422) and is excluded
				from the calculation of the special tax computation for taxpayers who are 65
				years of age or older under rule 701-301.15(422).
(3)
Iowa withholding.
The
				amount of military retirement pay is excluded from the calculation of payments
				used to determine whether Iowa tax should be withheld from pension and annuity
				payments as determined pursuant to 701-subrule 307.3(4).
This rule is intended to implement Iowa Code sections
				  422.5 and
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.82 - First-time Homebuyer Savings Accounts

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
Definitions
				that apply to the first-time homebuyer savings account program may be found in
				Iowa Code section 541B.2.
(2)
Establishing an account.
a.
Account holders.
(1) A
				first-time homebuyer savings account holder must be an individual or married
				couple.
(2) Any individual may
				establish a first-time homebuyer savings account by opening an account that
				meets the requirements provided in this rule.
(3) A married couple who files a joint Iowa
				income tax return may establish a joint first-time homebuyer savings account by
				opening a joint savings account that meets the requirements provided in this
				rule. Married couples who file separately or separately on a combined return
				for Iowa income tax purposes may not establish a joint first-time homebuyer
				savings account.
(4) There is no
				limit on the number of first-time homebuyer savings accounts that any account
				holder may open. However, account holders are subject to other restrictions
				under the Iowa Code and these rules, including but not limited to the annual
				contribution limits and aggregate lifetime limits in paragraph
				40.82(4)
"c."
(5)
				No account holder may open or hold more than one account for the same
				designated beneficiary.
(6) The
				account holder may change the designated beneficiary of the account at any
				time.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.84 - Broadband Infrastructure Grant Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Broadband infrastructure grant
				exemption, generally.
For tax years beginning on or after January 1,
				2019, certain qualifying communications service providers may subtract, to the
				extent included in income, the amount of qualifying government grants used to
				install broadband infrastructure that facilitates broadband service in targeted
				service areas at or above download and upload speeds identified by the Federal
				Communications Commission pursuant to Section 706 of the federal
				Telecommunications Act of 1996, as amended. This rule explains terms not
				defined in Iowa Code section
				422.7.
(2)
Definitions.
"Facilitate"
shall have the same meaning as
				  defined in Iowa Code section
				  8B.1.
"Grant"
means a transfer for a governmental
				  purpose of money or property to a transferee that is not a related party to or
				  an agent of the transferor. The transfer must not impose any obligation or
				  condition to directly or indirectly repay any amount to the transferor or a
				  related party. Obligations or conditions intended solely to assure expenditure
				  of the transferred moneys in accordance with the governmental purpose of the
				  transfer do not prevent a transfer from being a grant.
1. "Federal grant" means any grant issued by
				the United States government, including any agency or instrumentality
				thereof.
2. "State grant" means any
				grant issued by any state of the United States, the District of Columbia, or a
				territory or possession of the United States, including any agency or
				instrumentality thereof.
3. "Local
				grant" means any grant issued by any city, county, township, school district,
				or any other unit of local government, including any agency or instrumentality
				thereof.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 302 - Determination of Net Income › Rule 701-302.86 - Covid-19 Grant Exclusion

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For purposes of this rule:
"Administering agency"
means the economic
				  development authority, the Iowa finance authority, or the department of
				  agriculture and land stewardship.
"Grant recipient"
means a person who
				  applies for and is issued a qualifying COVID-19 grant by an administering
				  agency.
"Issued"
means the approval of the grant
				  recipient's application and amount for a qualifying COVID-19 grant by an
				  administering agency, regardless of when the grant funds were paid by the
				  administering agency.
(2)
Qualifying COVID-19 grant programs.
a. The department is responsible for
				determining whether a grant program provides a "qualifying COVID-19 grant" as
				defined in Iowa Code section
				422.7(62). In
				making this determination, and for purposes of the definition of "qualifying
				COVID-19 grant," a grant program is "created to primarily provide COVID-19
				related financial assistance to economically impacted individuals and
				businesses located in this state" if that grant program, at the time of its
				inception, was intended by the administering agency to provide a majority (more
				than 50 percent) of its financial assistance to or for the benefit of either or
				both of the following persons economically affected by the COVID-19 pandemic:
(1) Individuals living in Iowa.
(2) Businesses that are doing business in
				Iowa or are deriving income from sources within Iowa.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.1 - Verification of Deductions Required

Current through Register Vol. 47, No. 3, July 24, 2024
Deductions from gross income, otherwise allowable, will not
				  be allowed in cases where the department requests the taxpayer to furnish
				  information sufficient to enable it to determine the validity and correctness
				  of such deductions, until such information is furnished. For taxpayers using an
				  electronic data interchange process or technology also see 701-subrule
				  11.4(4).
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.2 - Federal Rulings and Regulations

Current through Register Vol. 47, No. 3, July 24, 2024
In determining whether "taxable income," "net operating loss
				  deduction" or any other deductions are computed for federal tax purposes under,
				  or have the same meaning as provided by, the Internal Revenue Code, the
				  department will use applicable rulings and regulations that have been duly
				  promulgated by the commissioner of internal revenue, unless the director has
				  created rules and regulations or has exercised discretionary powers as
				  prescribed by statute which calls for an alternative method for determining
				  "taxable income," "net operating loss deduction" or any other deduction, or
				  unless the department finds that an applicable internal revenue ruling or
				  regulation is unauthorized according to the Iowa Code.
This rule is intended to implement Iowa Code sections
				  422.7 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.4 - Optional Standard Deduction

Current through Register Vol. 47, No. 3, July 24, 2024
An optional standard deduction is provided on the Iowa
				  individual income tax return for both residents and nonresidents. In the case
				  of married taxpayers filing separate returns or separately on the combined
				  return, if one spouse takes the optional standard deduction, the other spouse
				  must also take the optional standard deduction. The standard deduction claimed
				  by the taxpayer may not exceed the taxpayer's income before the standard
				  deduction.
A taxpayer has the option of itemizing deductions or of using
				  the optional standard deduction on the Iowa return, regardless of the deduction
				  method used on the federal return.
For tax years beginning on or after January 1, 1990, the
				  optional standard deduction amounts are indexed or increased for inflation by
				  the cumulative standard deduction factor. The cumulative standard deduction
				  factor is described in rule
				  701-38.12 (422).
This rule is intended to implement Iowa Code sections
				  422.4 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.6 - Itemized Deductions-separate Returns by Spouses

Current through Register Vol. 47, No. 3, July 24, 2024
Where both spouses itemize deductions, the deductions must be
				  divided between them in the ratio that each spouse's separate Iowa net income
				  bears to the total Iowa net income of both spouses unless each spouse can show
				  that the spouse paid for or is entitled to accrue the deductions. It will be
				  presumed that the deductions are paid by both spouses and must be prorated if
				  the deductions were paid from a joint checking account of both spouses. In any
				  event, all itemized deductions must either be prorated between spouses or must
				  be specifically deducted by the spouse that paid for the deductions. No
				  combinations of the two methods will be permitted.
This rule is intended to implement Iowa Code section
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.7 - Itemized Deductions-part-year Residents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Reserved.
(2) For tax years beginning on or after
				January 1, 1982, itemized deductions attributable to Iowa by part-year
				residents shall be the itemized deductions allowable for resident taxpayers.
This rule is intended to implement Iowa Code sections
				  422.7,
				  422.8 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.8 - Itemized Deductions-nonresidents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Reserved.
(2) For tax years beginning on or after
				January 1, 1982, itemized deductions attributable to Iowa by nonresidents shall
				be the itemized deductions available for resident taxpayers.
This rule is intended to implement Iowa Code sections
				  422.5,
				  422.7 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.9 - Annualizing Income

Current through Register Vol. 47, No. 3, July 24, 2024
Where a taxpayer is required to annualize income for federal
				  income tax purposes the taxpayer must also annualize on the Iowa return.
This rule is intended to implement Iowa Code section
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.10 - Income Tax Averaging

Current through Register Vol. 47, No. 3, July 24, 2024
There is no provision in the Iowa Code which allows income
				  tax averaging.
This rule is intended to implement Iowa Code sections
				  422.7 and
				  422.5.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.12 - Deduction for Home Mortgage Interest for Taxpayers With Mortgage Interest Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1996, any
				  taxpayer who had the mortgage interest credit on the federal return can claim a
				  deduction on the Schedule A of the IA 1040 for all the mortgage interest paid
				  in the tax year, including the mortgage interest that was not deducted on the
				  federal return due to the mortgage interest credit.
This rule is intended to implement Iowa Code sections
				  422.3 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 303 - Determination of Taxable Income › Rule 701-303.13 - Iowa Income Taxes and Iowa Tax Refund

Current through Register Vol. 47, No. 3, July 24, 2024
As provided in subrule 41.5(1), Iowa individual income taxes
				  paid or accrued are allowable itemized deductions for federal income tax
				  purposes, but are not allowable itemized deductions for Iowa income tax
				  purposes. To the extent Iowa income taxes were deducted as itemized deductions
				  for federal tax purposes, they shall be disallowed as an itemized deduction for
				  Iowa income tax purposes.
Refunds of Iowa income taxes to the extent that the refunds
				  were included in the determination of federal adjusted gross income shall be
				  allowed as a reduction to Iowa adjusted gross income, only to the extent that
				  an itemized deduction for Iowa income taxes was disallowed on a prior Iowa
				  return. Iowa income tax refunds resulting from Iowa refundable income tax
				  credits are not allowed as a reduction for Iowa income tax purposes.
EXAMPLE: Individual A made Iowa estimated payments of $2,000
				  during the 2003 tax year. The $2,000 of estimated payments was claimed as an
				  itemized deduction for federal tax purposes, but was not allowed as an itemized
				  deduction for Iowa tax purposes. The 2003 Iowa return reported a tax liability
				  of $1,600. Individual A had $2,000 of Iowa estimated payments and a $500
				  ethanol blended gasoline tax credit, and received a $900 Iowa tax refund in
				  2004. Of the $900 refund reported as income on the federal return, Individual A
				  will be allowed a $400 ($2,000 - $1,600) reduction on the Iowa return for
				  2004.
This rule is intended to implement Iowa Code section
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.1 - School District Surtax

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa law provides for the implementation of an income surtax
				  for increasing local school district budgets. The surtax must be approved by
				  the voters of a school district in a special election or by a resolution of the
				  board of directors of a school district. The surtax rate is determined by the
				  department of management on the basis of the revenue to be raised by the surtax
				  for the particular school district with the surtax.
The school district surtax is imposed on the income tax
				  liabilities of all taxpayers residing in the school district on the last day of
				  the taxpayers' tax years. For purposes of the school district surtax, income
				  tax liability is the tax computed under Iowa Code section
				  422.5, less the nonrefundable
				  credits against computed tax which are authorized in Iowa Code chapter 422,
				  division II.
In a situation where an individual is residing in a school
				  district with a surtax and the individual dies during the tax year, the
				  individual will be considered to be subject to the surtax, since the individual
				  was residing in the school district on the last day of the individual's tax
				  year.
An individual serving in the Armed Forces of the United
				  States who maintains permanent residence in an Iowa school district with a
				  surtax is subject to the surtax regardless of whether the individual is
				  physically residing in the school district on the last day of the tax
				  year.
A person who is present in the school district on the last
				  day of the tax year on a temporary basis due to annual leave or in transit
				  between duty stations is not subject to the surtax.
This rule is intended to implement Iowa Code sections
				  257.21,
				  257.29, and
				  422.15.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.3 - Exemption Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A single
				person shall deduct from the computed tax a personal exemption credit of $40. A
				single person is defined in 701-subrule 39.4(1).
(2) A married person living with husband or
				wife at the close of the taxable year, or living with husband or wife at the
				time of the death of that spouse during the taxable year, shall, if a joint
				return is filed, deduct from the computed tax a personal exemption of $80.
				Where such spouse files a separate return, each spouse is entitled to deduct
				from the computed tax a personal exemption of $40. The personal exemption may
				not be divided between the spouses in any other proportion.
(3) A taxpayer shall deduct from computed tax
				an exemption of $40 for each dependent. "Dependent" has the same meaning as
				provided by the Internal Revenue Code, and the same dependents shall be claimed
				for Iowa income tax purposes as the taxpayer is entitled to claim for federal
				income tax purposes. If each spouse furnished 50 percent of the support, the
				spouses must elect between them which spouse is to be entitled to claim the
				dependent. The dividing of dependent credits applies only to the number of
				dependents and not to the credit amount for a particular dependent.
(4) A head of household as defined in
				701-subrule 39.4(7) is allowed a personal exemption credit of $80.
(5) A taxpayer who is 65 years of age on or
				before the first day following the end of the tax year is allowed an additional
				personal exemption credit of $20 in addition to any other credits allowed by
				this rule.
(6) A taxpayer who is
				blind, as defined in Iowa Code section
				422.12(1)
"e,"
is allowed a personal exemption credit of $20 in addition
				to any other credits allowed by this rule.
(7) A nonresident taxpayer or a part-year
				resident taxpayer will be allowed to deduct personal exemption credits as if
				the nonresident taxpayer or part-year taxpayer was a resident for the entire
				year.
This rule is intended to implement Iowa Code section
				  422.12.