The Servicemembers Civil Relief Act (SCRA) is a federal law that, among other things, requires Iowa to allow a deferral of collection of state income tax if a servicemember’s ability to pay is materially affected by their military service. The deferral lasts for only a period of up to 180 days after termination or release from military service. The SCRA only defers collection of income tax that has fallen due before or during military service. Servicemembers must still file their income tax returns, unless their duty to file is suspended by another authority.
Do You Qualify?
- You must be a “servicemember.”
- Members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and commissioned corps of the National Oceanic and Atmospheric Administration and of the Public Health Service are servicemembers.
- Members of the National Guard and reserves are servicemembers only if those members are serving a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days.
- You must serve during a period of “military service.”
- In the case of Army, Navy, Air Force, Marine Corps, or Coast Guard, a servicemember is serving in a period of military service if they are on “active duty.”
- In the case of commissioned officers of the National Oceanic and Atmospheric Administration or Public Health Service, military service requires “active service.”
- In the case of members of the National Guard, military service includes service under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days.
- You must be “materially affected” by your military service.
- The Department will consider all relevant facts and circumstances in determining whether servicemembers' ability to pay their income tax has been materially affected by their military service.
- You must be in “filing compliance.”
- Servicemembers can receive a deferral of collection of income taxes only for periods in which they have filed an income tax return.
- You must file a written request for deferral.
- Servicemembers must make a written request for deferral of collection of income to the Department by completing the Request for Deferral of Iowa Income Tax form.
- Servicemembers must submit a copy of their orders with their Request for Deferral of Iowa Income Tax form.