Iowa Income Tax Forms and Iowa Income Tax Rate Information

Iowa Income Tax E-File Information

Iowa Electronic Filing Guide: https://tax.iowa.gov/individual-income-tax-electronic-filing-options pdf Mail rejected returns and paper returns to:

1) If receiving refund or zero tax due – Iowa Income Tax Refund Processing, Hoover State Office Building, Des Moines, IA 50319-0120;

2) Paying additional tax – Iowa Income Tax, Document Processing, P. O. Box 9187, Des Moines, IA 50306-9187.

RECORD KEEPING

Iowa income tax returns, federal returns, and all relevant schedules should be kept for at least three years after filing the return.

 

Who must file an Iowa income tax return?

You must file an Iowa return if you were a resident or part-year resident of Iowa in 2015 and meet any of the following requirements.

In meeting the filing requirements below, both incomes of husband and wife must be included, and any pension/retirement income exclusion (line 21 of the IA 1040) and any Social Security Phase-out amount from line 12 of the Social Security Worksheet (page 2) must be added back.

a. Net income (line 26 of the IA 1040) of more than $9,000 and your filing status is single ($24,000 if 65 or older on 12/31/13).

b. Net income (line 26 of the IA 1040) of more than $13,500 and your filing status is other than single ($32,000 if you or your spouse is 65 or older on 12/31/14).

c. Individual was claimed as a dependent on another person’s Iowa return and had a net income (line 26 of the IA 1040; line 4 of the IA 1040A) of $5,000 or more.

d. Military service with Iowa shown as your legal residence even though stationed outside of Iowa. For information about military spouses, see information on the Military Spouses Residency Relief Act.

e. Subject to Iowa lump-sum tax.

f. Nonresident or part-year resident and your net income from Iowa sources (line 26 of the IA126) was $1,000 or more, unless below the income thresholds above. In the case of married nonresidents, the spouses’ combined income is used to determine if

their income is high enough to require them to file an Iowa return. To understand “Iowa-source income,” see the instructions for lines 1-26 of the IA 126.

g. Nonresident or part-year resident and subject to Iowa lump-sum tax or Iowa minimum tax (even if Iowa-source income is less than $1,000).

School District Surtax: The school district surtax is applicable for resident members of the armed forces of the United States living in an Iowa school district, even if the member is not physically present in Iowa on the last day of the tax year. (IAC 42.1)

 

What are Iowa Income Tax Forms?

All filers use IA 1040, or 1040 A; Part-year and nonresidents should also use IA 126, Nonresident and Part Year Schedule. Instructions for this schedule are included in the Form IA 1040 expanded instructions (see https://tax.iowa.gov/ia-1040-expanded-instructions-user-guide ).

 

What are Iowa income tax deductions, Iowa Income Exclusions, and Iowa income tax exemptions?

Iowa uses a Personal Tax Credit of $40 per person, rather than an exemption. An additional $20 per person credit applies if the taxpayer and/spouse is aged 65 or older. See Form IA 1040 expanded instructions for more details (https://tax.iowa.gov/ia-1040-expanded-instructions-user-guide).

Military student loan repayments included in federal adjusted gross income are exempt from Iowa income tax if the person is in the armed forces, or armed forces military Reserve, or National Guard; and the individual was on active duty at the time of the loan repayment. Include the loan repayment amount in line 1 and deduct it in line 24 (IAC 40.63).

Principal and interest from bills, bonds, and notes issued by the United States Treasury are exempt. Iowa taxes social security income differently from the federal government. The instructions for the Form IA 1040 include a worksheet to calculate the tax owed.

 

Iowa Income Tax Deductions

May itemize deductions or take standard deduction of $1,920 for single and married filing separately, $4,740. for married filing jointly, head of household, and qualifying widow(er)s. Deductions listed and explained at: https://tax.iowa.gov/expanded-instructions/deduction-0.

Military retirement pay is not subject to Iowa income tax. Taxpayer receiving a pension, IRA distribution, or other retirement plan benefits while an Iowa resident, not including social security benefits, may qualify to exclude up to $6,000.00 from income if filing single or married filing separately, up to $12,000.00 if filing married filing jointly, head of household, or as a qualifying widow(er).

A federal income tax addition or deduction may apply, based on federal income tax withheld and the amount of the federal income tax refunded. When calculating this amount, the federal refund does not include the earned income tax credit and the additional child tax credit. Subtract these amounts from the federal refund amount in making this calculation.

Use Tax – If you purchased products for use in Iowa from a business located outside Iowa and the seller does not charge you Iowa sales tax, you may owe 6% consumer’s use tax on the purchase. This includes items purchased from catalogs and the Internet. For more information, see https://tax.iowa.gov/expanded-instructions/consumers-use-tax-0

 

What is Iowa Capital Gain tax?

Taxed as ordinary income. Iowa follows federal rules on exclusion of gain from the sale of a principal residence.

 

What is the deadline to file Iowa Income Tax?

If at least 90% of total tax liability is paid by April 30, 2016, an automatic additional six months to file the return–November 2, 2015, to file the return. No late file

Penalty assessed. However, may owe a 2210 penalty for failure to make estimated payments. Interest owed on any tax still due after April 30.

 

Iowa Income Tax Contact Information

Iowa Department of Revenue and Finance
Taxpayer Services
P.O. Box 10457
Des Moines, IA 50306

 

Iowa Income Tax Contact Information

General Information: (515) 281-3114 or (800) 367-3388

Website:      Department of Revenue and Finance  I

Refund Status:  (515) 281-4966 or (800) 572-3944 or via web at Refund Status

Electronic Filing:  (515) 281-3114 or (800) 367-3388

Iowa Electronic Filing Guide: Efiling Options