Tax Guidance

The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.

If you have tax questions, search our Frequently Asked Questions.

For information on how to request tax guidance, see the Department's Tax Guidance Request page.

Tax Guidance

Tax Type:
Other Taxes & Fees

On June 24, 2020 Governor Reynolds signed into law House File 760. House File 760 added a new exemption from hotel & motel tax for certain guests staying with hospital patients. Additionally, this bill included changes for extended rentals. The Department has revised its website guidance on the taxation of hotel room rentals to reflect these changes, which went into effect on July 1, 2020.

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Income Tax, Iowa Tax Reform

For tax years beginning on or after January 1, 2019, and before January 1, 2020, Iowa conforms with the federal Internal Revenue Code (IRC) in effect on March 24, 2018. For tax years beginning on or after January 1, 2020, Iowa has adopted rolling conformity with the IRC. Iowa did not conform with many of these changes for tax year 2018. See the 2018 Iowa Nonconformity Adjustments Worksheet for information about how to make the necessary adjustments for Global Intangible Low Tax Income (GILTI), Foreign Derived Intangible Income (FDII), and other Tax Cuts and Jobs Act (TCJA) items for tax year 2018.

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Income Tax, Iowa Tax Reform

On March 23, 2018, President Trump signed into law the Consolidated Appropriations Act, 2018 (P.L. 115-141). Among other changes to the Internal Revenue Code (IRC), this bill included a fix to the so called “grain glitch,” which occurred when IRC section 199 was repealed under Tax Cuts and Jobs Act (TCJA) in 2018. This guidance is for Specified Agricultural and Horticultural Cooperatives claiming the IRC section 199A(g) deduction (New DPAD). For tax years 2019 and later, qualifying co-ops will generally be allowed to claim 100% of the federal 199A(g) deduction and will be required to take 100% of any reduction to the cooperative’s IRC section 1382 deduction resulting from the new DPAD allocated to patrons for Iowa purposes.

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Tax Type:
Sales & Use Tax

To facilitate the review of relevant claims filed with the Department and to expedite the correct determination of the tax-exempt status of temporary labor service transactions, the Department has produced this guidance to notify taxpayers and tax practitioners of information that should be included with every refund claim form Iowa 843 that contains requests for refunds of tax paid on temporary labor services.

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Tax Type:
Income Tax

On December 20, 2019, President Donald Trump signed Public Law 116-94, the Further Consolidated Appropriations Act of 2020. Division Q of that Act, entitled the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” extends several federal tax provisions, many retroactively to tax years 2018 and 2019. Division O of the Act, entitled the “Setting Every Community up for Retirement Enhancement Act” (SECURE Act) also contains a number of provisions that may have tax effects for some taxpayers.

Generally, Iowa does not conform with these federal tax changes to the extent they apply to a tax year beginning prior to January 1, 2020. However, Iowa has conformed with certain provisions related to 529 plans. This guidance describes Iowa's general nonconformity with this federal law for tax years beginning in calendar year 2018 or 2019. Iowa generally conforms with these federal tax changes (with one exception), to the extent they affect Iowa income taxes, for tax years beginning on or after January 1, 2020.

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Sales & Use Tax

Landscaping, lawn care, and tree trimming and removal services are subject to Iowa sales and use tax. Persons providing such services must obtain a sales tax permit and remit sales tax to the Department of Revenue. Snow removal services are not a taxable service in Iowa. Expand each topic for full details.

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Tax Type:
Income Tax, Iowa Tax Reform

The Department of Revenue has received several questions regarding the applicability of the federal S corporation built-in gains tax for Iowa tax purposes. This guidance is not a detailed analysis of the calculation of this federal tax, but is instead intended to generally describe Iowa’s conformity with the federal built-in gains tax on S corporations, with a particular focus on Iowa’s conformity since the change to the recognition period enacted in federal Public Law 114-113, Division Q, section 127, Commonly referred to as the Protecting Americans from Tax Hikes Act.

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Income Tax, Iowa Tax Reform

On December 22, 2017, President Donald Trump signed Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act, which included a repeal of the federal Domestic Production Activities Deduction (DPAD) for tax years beginning on or after January 1, 2018. Iowa, however, did not conform with this repeal for tax years beginning on or after January 1, 2018, but before January 1, 2019 (referred to herein as “tax year 2018”). As a result, the DPAD will be available as a deduction for Iowa tax purposes for tax year 2018, even though this deduction is not available at the federal level. The deduction will not be available for Iowa purposes for tax years beginning on or after January 1, 2019, except under certain circumstances described below.

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General

In May 2019, the Iowa legislature enacted House File 590, a bill providing requirements and penalties for tax return preparers. Beginning January 1, 2020, individuals preparing certain tax returns or claims for refund under Iowa Code chapter 422 may be classified as tax return preparers. Tax return preparers will be subject to continuing education requirements and penalties for failing to provide their preparer tax identification number (PTIN) on returns they prepare. This guidance explains who shall be considered tax return preparers and the specifics of completing and reporting continuing education courses. Additionally, this guidance provides information on the penalties for violating the tax return preparer requirements and examples of situations involving tax return preparers.

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Tax Type:
Other Taxes & Fees

Information regarding Iowa vehicle purchase and lease, including forms

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