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Federal Non-Conformity Issues

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2018

NON-CONFORMITY WITH THE INTERNAL REVENUE CODE (IRC)

For tax year 2018, Iowa law is conformed with the IRC as it existed on January 1, 2015. Iowa law is not conformed with any changes made by the United States Congress after January 1, 2015, with certain limited exceptions specified in the Iowa Code.

For more information see Nonconformity Adjustments Worksheet, and guidance on our Iowa Tax Reform page. This page may be updated periodically.

The result is that when Iowa taxpayers calculate their Iowa net income, they will determine their federal adjusted gross income (AGI) as if Congress had not passed the Protecting Americans from Tax Hikes (PATH) Act of 2015, the Tax Cuts and Jobs Act (TCJA) in 2017, the Bipartisan Budget Act of 2018, or the Consolidated Appropriations Act of 2018.

For the most part, the calculation of Iowa net income is still the same as the calculation for federal AGI. However, the calculation of Iowa net income will be different from the federal AGI calculation when it comes to certain items, such as section 179 expensing, that were amended by the federal acts listed above.

Disclaimer: Please be advised that this is an informational document. It should not be relied upon or otherwise cited as precedent. This information is subject to change at any time. If a member of the public wishes to request a binding decision, he or she must file a Petition for Declaratory Order pursuant to 701 IAC 7.24.