What's New?

Instruction Year
2019

NEW FOR 2019:

For tax year 2019, Iowa is conformed to most, but not all, of the provisions of the Internal Revenue Code (IRC) in effect on March 24, 2018.
Iowa has conformed with federal changes relating to the solar energy system tax credit in effect on January 1, 2016, but not to any more recent federal changes to that credit.

Step 5

 

Line 14

Iowa has not conformed with federal bonus depreciation provisions for assets acquired in 2019. The IRC section 179 limit applicable to individuals for Iowa for tax year 2019 is $100,000. See the IA 4562A/B for more information. Taxpayers who had to make adjustments for Iowa’s nonconformity to federal law in 2018 may need to complete form IA 101 in 2019 and later years. See the IA 101 Nonconformity Adjustments form for more information. Iowa has conformed with the federal repeal of like-kind exchanges of personal property for tax year 2019, but taxpayers may elect to apply the prior federal rules and treat qualifying transactions as a like-kind exchange for Iowa purposes in 2019. An election is made by completing the IA 8824 worksheet for the applicable exchange and making any required return adjustments described on that worksheet. No special attachment or statement is required. See the IA 8824 Worksheet for more information.

Step 7

 

Line 31

Federal tax withheld in 2019, federal estimated tax payments made in 2019, and federal taxes paid in 2019 for 2018 and prior years. Add all of the following tax payments made in 2019. Enter the total on line 31.

Line 32 & Line 33

Iowa permits a deduction for 25% of your federal qualified business income (QBI) deduction under Internal Revenue Code (IRC) sec.199A.

Step 8

 

Line 37

A number of adjustments and separate Iowa calculations may be necessary to determine the correct deduction. Iowa has not conformed to the federal $10,000 deduction limit for state and local taxes paid. Due to Iowa’s 2018 nonconformity to federal law your charitable contribution carryforward amount from 2018 may be different for Iowa and federal purposes.

Step 9

 

Line 52

The geothermal heat pump tax credit may be available for installations completed in 2019. Total geothermal credits awarded by the Department of Revenue cannot exceed $1,000,000 per year. Applications for 2019 installations are due May 1, 2020.

Step 10

 

Line 62

When claiming the Iowa adoption tax credit, adoption expenses paid or incurred prior to the completion of a qualifying adoption can now be claimed in the tax year the adoption is finalized. Prior to 2019, adoption expenses paid or incurred prior to the finalization of an adoption were required to be claimed in the tax year they were paid or incurred, but not until the adoption was finalized, which could have resulted in the requirement to amend prior year returns. The maximum credit amount remains at $5,000 per adoption.