The 2017 Legislative Summary is available online only.
Legislative changes are incorporated in the information below.
For tax year 2017, Iowa has not adopted federal Internal Revenue Code changes regarding the determination of income that occurred after January 1, 2015. This page may be updated pending future legislation. For more information, see the Impact of Non-Conformity page.
SPECIFIC LINE INFORMATION
While Social Security benefits are not subject to Iowa income tax, the Reportable Social Security benefit amount is included in the alternate tax calculation worksheet and the tax reduction worksheet, as well as the calculation of whether sufficient income was earned in order to file an Iowa return. See the Social Security Worksheet under Step 4 of the instructions.
Line 14 Bonus Depreciation / Section 179 – Iowa has not coupled with the 50% bonus depreciation provisions for assets acquired in 2017. The section 179 limit for Iowa for tax year 2017 is $25,000. The phase-out threshold is $200,000.
Line 23 Iowa Capital Gain Deduction – If any deduction is reported on this line, the applicable Capital Gain Deduction form (IA 100A – IA 100F) must be completed and included with the return. Each eligibility category has a separate form.
Line 24 Adjustments
- College Savings Iowa or Iowa Advisor 529 Plan: The deductible amount for tax year 2017 cannot exceed $3,239 per beneficiary.
- Iowa ABLE (Achieving a Better Life Experience) Savings Plan Trust: Contributions to a qualified ABLE savings plan trust, on behalf of a designated beneficiary, are deductible from Iowa individual income tax up to a maximum amount, $3,239.
Line 33 Additional Federal Tax Paid in 2017
FICA Amount - FICA payments for tax year 2017 in excess of $7,886.00 for Social Security tax for each person can be deducted as a federal tax payment.
Line 37 Deduction
Standard Deduction for tax year 2017:
- Filing Status 1: $2,000
- Filing Status 3 & 4: $2,000 for each spouse
- Filing Status 2, 5 or 6: $4,920
There is a limitation on the amount of itemized deductions that can be claimed for certain high-income taxpayers. The calculation is done on the Iowa Itemized Deductions Worksheet, form IA104.
Line 52 Other Nonrefundable Iowa Credits – The Geothermal Heat Pump Tax Credit is not available for installations occurring in 2017. However, installations may be eligible for the new Geothermal Tax Credit; complete the IA 140.
Line 57 Reminder - Checkoffs
- Fish & Wildlife Fund
- Iowa State Fair Foundation
- Combined: Veterans Trust Fund / Volunteer Firefighter Preparedness Fund
- Child Abuse Prevention Program Fund
Line 62 Other Refundable Credits – To make a claim to the adoption tax credit equal to the first $5,000 of unreimbursed expenses related to an adoption per each child adopted in Iowa, the IA 177 must be completed and included with the return.
Paper filers now have the option to have their refund direct deposited to their bank account by entering their account information in Step 11.
Line 75 Interest Rate 2018
6% per year; 0.5% per month
Political Checkoff: Beginning with tax year 2017, taxpayers no longer have the option to designate funds to the Iowa Election Campaign Fund, or to a specific party’s election campaign fund, on the Iowa individual income tax form.
DUE DATE: April 30, 2018
Farmers and fishers due date: If at least 2/3 of income is from farming or commercial fishing, penalty for underpayment of estimated tax may be avoided in one of the following ways: (1) Pay the estimated tax in one payment on or before January 16, 2018, and file the Iowa income tax return by April 30, 2018, or (2) File the Iowa income tax return and pay the tax due in full on or before March 1, 2018.
Direct Debit payment with the income tax return.
ePay (free direct debit) individual income tax estimated payments and final payment of individual income tax through the Department’s online eFile & Pay system free of charge.
Credit / debit card: Fee is charged by the third-party vendor. Our website has information and links.
MoneyGram: Pay with cash at MoneyGram locations.
Check / money order: Send with IA 1040V payment voucher.
Power of Attorney Form: The Federal Power of Attorney form or a Military Power of Attorney is accepted by the Iowa Department of Revenue. To be valid, the Federal or Military form must include a statement that it is applicable for Iowa purposes at the time it is executed. In the case of a previously executed Federal or Military Power
of Attorney subsequently revised to apply for Iowa purposes, it must contain a written statement that indicates it is being submitted for use with State of Iowa forms and the statement needs to be initialed by the taxpayer.
Iowa allows married taxpayers to file one Iowa Power of Attorney form on behalf of both spouses. The IRS requires separate Power of Attorney forms for each spouse. If the Federal Power of Attorney is being used for Iowa purposes by married taxpayers, both federal forms must be submitted to Iowa.
Many of the online forms on the Department website are fillable. If using Adobe Reader Version 11, the form can now be saved after it is filled out.
- Include all necessary supporting information, but do not staple to the return.
- Place documents in the following order
1. Check or Money Order
2. Payment Voucher (1040V)
3. W-2s / 1099s
4. IA 1040
5. Iowa schedules, forms, and supporting documentation
6. Copy of complete Federal return