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Iowa
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Details:
• Filing Status: Same-sex married couples must use filing status 2, 3, or 4 when filing Iowa returns
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Cow-Calf Refund: This refund is no longer available. The cow-calf refund was repealed for claims filed on or after November 1, 2008. No cow-calf refunds will be issued in February 2010 for claims made on 2008 returns.
New double-exempt bond - Appropriation Bonds (I-Jobs)
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Unemployment Compensation: Iowa has not coupled with the exclusion of the first $2,400 of unemployment compensation.
• Social Security Worksheet: The phase-out of tax on Social Security continues with a 43% reduction established by the Iowa Legislature. This is an increase in the exclusion percentage, which was 32% in 2007 and 2008.
• Section 179 / Bonus Depreciation: Iowa has not coupled with the increased section 179 expensing and has not coupled with 50% bonus depreciation. The section 179 limit for Iowa for 2009 is $133,000 and the investment ceiling limitation is $530,000.
• Adjustments: College Savings Iowa or Iowa Advisor 529 Plan. The deductible amount for tax year 2009 cannot exceed $2,800 per beneficiary.
Iowa has not coupled with the deductions for: (1) educator expenses and (2) tuition and fees.
• New: Employee benefits for same-sex married couples ,Value of health insurance for nonqualified dependents ,Film production exclusion now pro-rated over four years
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Filing Thresholds for Taxpayers 65 and Older Increased:
An Iowa return is not required for single persons with income of $24,000 or less, and an Iowa return is not required for all other filers with income of $32,000 or less. In the case of married persons, the higher threshold amounts apply even if only one spouse is 65 years or older as of December 31 of the tax year.
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Federal Income Tax Refund Received in 2009: Include the recovery rebate credit received in 2009. Do not include the first-time home buyer credit refund received in 2009 or the $250 federal payment made to Social Security recipients, veterans, and railroad retirees in 2009.
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FICA Amount: FICA payments for tax year 2009 in excess of $6,621.60 for Social Security tax for each person can be deducted as a federal tax payment.
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Itemized Deductions: For itemized deduction calculations dependent upon federal Adjusted Gross Income (AGI), the federal AGI thresholds for tax year 2009 are $166,800 and $83,400. The itemized deduction for state sales and use tax in lieu of state income tax is not allowed. The federal new motor vehicle taxes deduction for qualified new vehicles is not allowed. If one spouse itemizes deductions, then both spouses must itemize, even if separate Iowa returns are filed.
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Charitable Mileage: Iowa charitable mileage formula uses 39 cents.
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Standard Deduction for Tax Year 2009: Filing Status 1: $1,780
Filing Status 3 & 4: $1,780 for each spouse
Filing Status 2, 5 or 6: $4,390.
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Alternate Tax Calculation for Taxpayers 65 or Older - Threshold Amount Increased: Taxpayers who are 65 years of age or older - except taxpayers filing Status 1 - who have income just above the threshold amount of $32,000 should complete the alternate tax calculation worksheet for taxpayers 65 or older. In the case of married persons, the alternate tax can be applied even if only one spouse is 65 years or older as of December 31 of the tax year.
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Other Nonrefundable Iowa Credits: New: Redevelopment Tax Credit
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Iowa Earned Income Tax Credit: Some taxpayers may be required to make an additional calculation to determine the Iowa EITC.
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Other Refundable Credits: New: Ethanol Promotion Tax Credit Deleted: Assistive Device Credit (repealed effective 07/01/09 for individual income tax) , Ethanol Blended Gasoline Credit , Soy-based Transformer Fluid Credit, Interest Rate 2010: 5% per year; 0.4% per month; 0.013699% per day. |
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Government Link:
http://www.state.ia.us/tax/1040EI/GenInfo/09WhatsNew.html
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