reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.40 - Exemption of Active-duty Military Pay of National Guard Personnel and Armed Forces Reserve Personnel Received for Services Related to Operation Desert Shield

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending on or after August 2, 1990, military pay
				  received by persons in the national guard and persons in the armed forces
				  military reserve is exempt from state income tax to the extent the military pay
				  is not otherwise excluded from taxation and the military pay is for active-duty
				  military service on or after August 2, 1990, pursuant to military orders
				  related to Operation Desert Shield. The exemption applies to individuals called
				  to active duty in Iowa to replace other persons who were in military units who
				  were called to serve on active duty outside Iowa provided the military orders
				  specify that the active duty assignment in Iowa pertains to Operation Desert
				  Shield.
Persons filing original returns or amended returns on Form lA
				  1040X for tax years where the exempt income was received should print the
				  notation, "Operation Desert Shield" at the top of the original return form or
				  amended return form. A copy of the military orders showing the person was
				  called to active duty and was called in support of Operation Desert Shield
				  should be attached to the original return form or amended return form to
				  support the exemption of the active duty military pay.
This rule is intended to implement Iowa Code section
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.42 - Depreciation of Speculative Shell Buildings

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For tax years beginning on or after
				January 1,1992, speculative shell buildings constructed or reconstructed after
				that date may be depreciated as 15-year property under the accelerated cost
				recovery system of the Internal Revenue Code. If the taxpayer has deducted
				depreciation on the speculative shell building on the taxpayer's federal income
				tax return, that amount of depreciation must be added to the federal adjusted
				gross income in order to deduct depreciation computed under this
				rule.
(2) On sale or other
				disposition of the speculative building, the taxpayer must report on the
				taxpayer's Iowa individual income tax return the same gain or loss as is
				reported on the taxpayer's federal individual income tax return. If, while
				owned by the taxpayer, the building is converted from a speculative shell
				building to another use, the taxpayer must deduct the same amount of
				depreciation on the taxpayer's Iowa tax return as is deducted on the taxpayer's
				federal tax return.
(3) For the
				purposes of this rule, the term "speculative shell building" means a building
				as defined in Iowa Code section
				4271(27).
"c."
This rule is intended to implement Iowa Code section
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.43 - Retroactive Exemption for Payments Received for Providing Unskilled In-home Health Care Services to a Relative

Current through Register Vol. 47, No. 3, July 24, 2024
Retroactive to January 1,1988, for tax years beginning on or
				  after that date, supplemental assistance payments authorized under Iowa Code
				  section
				  2493(2).
"a"
(2) which are received by an individual providing unskilled
				  in-home health care services to a member of the caregiver's family are exempt
				  from state income tax to the extent that the individual caregiver is not a
				  licensed health care professional designated in Iowa Code section
				  14713.,
				  subsections 1 to 10.
For purposes of this exemption, a member of the caregiver's
				  family includes a spouse, parent, stepparent, child, stepchild, brother,
				  stepbrother, sister, stepsister, lineal ancestor such as grandparent and
				  great-grandparent, and lineal descendant such as grandchild and
				  great-grandchild, and those previously described relatives who are related by
				  marriage or adoption. Those licensed health care professionals who are not
				  eligible for this exemption include medical doctors, doctors of osteopathy,
				  physician assistants, psychologists, podiatrists, chiropractors, physical
				  therapists, occupational therapists, nurses, dentists, dental hygienists,
				  optometrists, speech pathologists, audiologists, and other similar licensed
				  health care professionals.
This rule is intended to implement Iowa Code section
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.44 - Individual Development Accounts

Current through Register Vol. 47, No. 3, July 24, 2024
Individual development accounts are authorized for low-income
				  taxpayers for tax years beginning on or after January 1, 1994. Additions to the
				  accounts are described in the following subrule:
(1)
Exemption of additions to
				individual development accounts.
The following additions to individual
				development accounts are exempt from the state income tax of the owners of the
				accounts to the extent the additions were subject to federal income tax:
a. The amount of contributions made in the
				tax year to an account by persons and entities other than the owner of the
				account.
b. The amount of any
				savings refund or state match payments made in the tax year to an account as
				authorized for contributions made to the accounts by the owner of the
				account.
c. Earnings on the account
				in the tax year or interest earned on the account.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.49 - Employer Social Security Credit for Tips

Current through Register Vol. 47, No. 3, July 24, 2024
Employers in the food and beverage industry are allowed a
				  credit under Section 45B of the Internal Revenue Code for a portion of the
				  social security taxes paid or incurred after 1993 on employee tips. The credit
				  is equal to the employer's PICA obligation attributable to tips received which
				  exceed tips treated as wages for purposes of satisfying minimum wage standards
				  of the Fair Labor Standards Act. The credit is allowed only for tips received
				  by an employee in the course of employment from customers on the premises of a
				  business for which the tipping of employees serving food or beverages is
				  customary. To the extent that an employer takes the credit for a portion of the
				  social security taxes paid or incurred, the employer's deduction for the social
				  security tax is reduced accordingly. For Iowa income tax purposes, the full
				  deduction for the social security tax paid or incurred is allowed for tax years
				  beginning on or after January 1, 1994.
This rule is intended to implement Iowa Code Supplement
				  section
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.51 - Exemption of Active-duty Military Pay of National Guard Personnel and Armed Forces Military Reserve Personnel for Overseas Services Pursuant to Military Orders for Peacekeeping in the Bosnia-herzegovina Area

Current through Register Vol. 47, No. 3, July 24, 2024
For active duty military pay received on or after November
				  21, 1995, by national guard personnel and by armed forces military reserve
				  personnel, the pay is exempt from state income tax to the extent the military
				  pay was earned overseas for services performed pursuant to military orders
				  related to peacekeeping in the Bosnia-Herzegovina area. In order for the active
				  duty pay to qualify for exemption from tax, the military service had to have
				  been performed outside the United States, but not necessarily in the
				  Bosnia-Herzegovina area.
This rule is intended to implement Iowa Code section
				  4227.
				  as amended by 1997 Iowa Acts, House File 355.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.52 - Mutual Funds

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa does not tax dividend or interest income from regulated
				  investment companies to the extent that such income is derived from interest on
				  United States Government obligations or obligations of this state and its
				  political subdivisions. The exemption is also applicable to income from
				  regulated investment companies which is derived from interest on
				  government-sponsored enterprises and agencies where federal law specifically
				  precludes state taxation of such interest. income derived from interest on
				  securities which are merely guaranteed by the federal government or from
				  repurchase agreements collateralized by the United States Government
				  obligations is not excluded and is subject to Iowa income tax. There is no
				  distinction between Iowa's tax treatment of interest received by a direct
				  investor as compared with a mutual fund shareholder The interest retains its
				  same character when it "flows-through" the mutual fund and is subject to
				  taxation accordingly.
Taxpayers may subtract from federal adjusted gross income,
				  income received from any of the obligations listed in 701-subrule 40.2(1) and
				  rule
				  701-403.
				  (422) above, even if the obligations are owned indirectly through owning shares
				  in a mutual fund:
1. If the fund
				invests exclusively in these state tax-exempt obligations, the entire amount of
				the distribution (income) from the fund may be subtracted.
2. If the fund invests in both exempt and
				nonexempt obligations, the amount represented by the percentage of the
				distribution that the mutual fund identifies as exempt may be
				subtracted.
3. If the mutual fund
				does not identify an exempt amount or percentage, taxpayers may figure the
				amount to be subtracted by multiplying the distribution by the following
				fraction: as the numerator, the amount invested by the fund in state-exempt
				United States obligations; as the denominator, the fund's total investment. Use
				the year-end amounts to figure the fraction if the percentage ratio has
				remained constant throughout the year If the percentage ratio has not remained
				constant, take the average of the ratios from the fund's quarterly financial
				reports.
Therefore, if the federal adjusted gross income of an
				  individual, taxable by Iowa, includes dividends or interest of this type, an
				  adjustment must be made deducting the amount of the dividend or
				  interest.
This rule is intended to implement Iowa Code section
				  422.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.55 - Exemption of Income Payments for Victims of the Holocaust and Heirs of Victims

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2000, income
				  payments received by individuals because they were victims of the Holocaust or
				  income payments received by individuals who are heirs of victims of the
				  Holocaust are excluded in the computation of net incomes, to the extent the
				  payments were included in the individuals' federal adjusted gross incomes.
				  Victims of the Holocaust were victims of persecution in the World War II era
				  for racial, ethnic or religious reasons by Nazi Germany or other Axis
				  regime.
Holocaust victims may receive income payments for slave labor
				  performed in the World War II era. income payments may also be received by
				  Holocaust victims as reparation for assets stolen from, hidden from, or
				  otherwise lost in the World War II era, including proceeds from insurance
				  policies of the victims. The World War II era includes the time of the war and
				  the time immediately before and immediately after the war However, income from
				  assets acquired with the income payments or from the sale of those assets shall
				  not be excluded from the computation of net income. The exemption of income
				  payments shall only apply to the first recipient of the income payments who was
				  either a victim of persecution by Nazi Germany or any other Axis regime or a
				  person who is an heir of the victim of persecution.
This rule is intended to implement Iowa Code sections
				  21739.
				  and
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.56 - Taxation of Income From the Sale of Obligations of the State of Iowa and Its Political Subdivisions

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1,2001, income
				  from the sale of obligations of the state of Iowa and its political
				  subdivisions shall be added to Iowa net income to the extent not already
				  included. Gains or losses from the sale or other disposition of bonds issued by
				  the state of Iowa or its political subdivisions shall be included in Iowa net
				  income unless the law authorizing these obligations specifically exempts the
				  income from the sale or other disposition of the bonds from the Iowa individual
				  income tax.
This rule is intended to implement Iowa Code section
				  4227.
				  as amended by 2001 Iowa Acts, chapter 116.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.57 - 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 $5 0,000 from the land sale.
				  Although Taxpayer Jones must report a capital gain of $ 12,5 00 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
				  4227.
				  as amended by 2002 Iowa Acts, House File 2116.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.58 - 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
				  4227.
				  as amended by 2012 Iowa Acts, Senate File 2097.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.59 - Exemption of Payments Received by a Beneficiary From an Annuity Purchased Under an Employee's Retirement Plan When the Installment Has Been Included as Part of a Decedent Employee's Estate

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.61 - 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 I, 2011, see rule
				  701-4076.
				  (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 I, 2003, that is
				  exempt from Iowa income tax, may complete an lA 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
				  4227.
				  as amended by 2011 Iowa Acts, House File 652.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.62 - 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
				  4227.
				  as amended by 2005 Iowa Acts, House File 186.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.63 - 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
				  4227.
				  as amended by 2003 Iowa Acts, House File 674.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.64 - 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
				  4227.
				  as amended by 2003 Iowa Acts, House File 674.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.66 - 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
				  4227.
				  as amended by 2005 Iowa Acts, House File 801.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.67 - 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 3 OB 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 bum technology motor
				  vehicles, new qualified hybrid motor vehicles, qualified plug-in electric drive
				  motor vehicles and new qualified alternative fuel vehicles. The advanced lean
				  bum 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
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.68 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.71 - 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
				91581., 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.72 - 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
				  4227.
				  as amended by 2012 Iowa Acts, Senate File 2038.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.73 - 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
				509A13B.
				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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.74 - 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
				  4227.
				  as amended by 2009 Iowa Acts, Senate File 482.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.75 - 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
				  4227.
				  as amended by 2010 Iowa Acts, House File 2532.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.76 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.77 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.78 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.79 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.82 - 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
				541B2..
(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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.84 - 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 I - Administration › Chapter 40 - Determination of Net Income › Rule 701-40.86 - 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)
				 as amended by 2021 Iowa Acts, Senate File
				619, section 5. 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 I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.1 - 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
				  42225..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.2 - 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
				  4227.
				  and
				  4229..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.4 - 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 I, 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
				  701-3812.
				  (422).
(1)
Direct charitable
				contribution for individuals claiming the optional standard deduction.
Rescinded lAB 3/26/08, effective 4/30/08.
(2) Reserved.
This rule is intended to implement Iowa Code sections 422.4
				  and 422.9.