IDR Releases Updated State Tax Guidance: Iowa Nonconformity CARES Act of 2020

Friday - 03/12/2021

On March 27, 2020, President Donald Trump signed Public Law 116-136, the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The CARES Act includes a number of changes to federal tax provisions that affect the Iowa income tax calculation.

  • Iowa Nonconformity: Coronavirus Aid, Relief, & Economic Security (CARES) Act of 2020
    The Department has provided updated guidance explaining that taxpayers who were not permitted to take income tax deductions for certain wage expenses for federal purposes because they claimed the federal Employee Retention Credit, are also not allowed to deduct those amounts on their Iowa income tax return, because Iowa law does not include a specific adjustment for these disallowed amounts.

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