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.

Tax Guidance

Tax Type:
Sales & Use Tax, Iowa Tax Reform

On May 30, 2018, Iowa Governor Kim Reynolds signed Senate File 2417 (SF 2417), an extensive state tax reform bill to improve the tax structure in Iowa. This law modernizes and expands the types of businesses required to collect Iowa sales tax and local option sales tax. Specifically, marketplace facilitators and remote sellers that exceed a certain amount of revenue or transactions must charge Iowa sales tax and applicable local option sales tax the same as retailers with a physical presence in Iowa. The 2019 legislature modified those new requirements.

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Tax Type:
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 (TCJA). This law repealed the deferral of gain or loss from exchanges of like-kind personal property held for productive use in a business or for investment under Internal Revenue Code (IRC) section 1031. 

On May 16, 2019, Governor Reynolds signed Iowa House File 779, which in part extended the ability to elect deferral of gain or loss on like-kind exchanges of personal property during tax year 2019 to corporations (including S-corporations) and financial institutions. This modifies statutory changes enacted in 2018 which only applied this elective treatment for tax year 2019 to individuals, estates or trusts, or pass-through entities other than corporations or financial institutions. This election has now been extended to all taxpayers for tax year 2019.

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Tax Type:
Sales & Use Tax

This guidance provides an overall summary of information including details specific if you are an Employee, Independent Contractor (Self Employed), or Employer. Additionally there are details regarding returns/schedules to be filed, reporting income from tips, what is subject to sales tax, Local Option Sales Tax, and Consumer's Use Tax.

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Tax Type:
Property Tax, Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, Iowa Code chapter 423A changed regarding how Iowa’s state and local hotel and motel excise tax is administered and imposes new collection obligations on persons who facilitate the sales of lodging on a platform. The Department has further amended and condensed its prior administrative rules relating to this excise tax, which can be found in Chapter 103 of the rules.

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Tax Type:
Income Tax

A general guide to estimated income tax payments including what income is subject, who must pay, exemptions, and penalty and interest.

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Tax Type:
Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Effective January 1, 2019, the sales price from rendering, furnishing, or performing a personal transportation service in Iowa is subject to Iowa sales tax and local option sales tax, as applicable. Senate File 2417 changes the tax on limousine service to a broader tax on “Personal Transportation Service” defined as the arrangement or provision of transportation service, regardless of whether the service supplies or uses a vehicle in conjunction with the service. Personal transportation service only includes the transportation of people, not property, including, but not limited to, transportation services provided by a human driver, a nonhuman driver, or a ride sharing service.

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Tax Type:
Income Tax, Iowa Tax Reform

On March 15, 2019, Governor Reynolds signed Senate File 220, which made the same ($70,000) section 179 deduction limitation applicable to all taxpayers for 2018. Earlier legislation only applied this limit to individuals and entities taxed as partnerships. Under that prior law Corporations subject to the income tax, entities that file as S-Corporations for income tax purposes, and financial institutions subject to the franchise tax were subject to a lower ($25,000) section 179 deduction limit for 2018. The earlier legislation also provided the Special Election described below to individuals and partnerships, but not to Corporations (including entities taxed as S-Corporations) and financial institutions. This Special Election has now been extended to all taxpayers.

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Tax Type:
Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, under Iowa Code section 423.2(6)(bq), the sale of storage services for tangible or electronic files, documents, and other records are subject to Iowa sales tax and applicable local option sales tax. Storage of household goods, mini-storage, and warehousing of raw agricultural products were taxable prior to January 1, 2019 and remain taxable.

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Tax Type:
Income Tax, Iowa Tax Reform

On May 30, Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act suspended the federal moving expense deduction for tax years 2018-2025, except for moving expenses incurred by active duty military members who move pursuant to a military order and incident to a permanent change of station. Iowa did not conform to this limitation for tax year 2018, allowing taxpayers to deduct qualifying moving expenses. 

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Tax Type:
Income Tax, Iowa Tax Reform

Beginning with Tax Year (TY) 2019 Iowa fully conforms with the business interest expense deduction limitations imposed by Internal Revenue Code (IRC) section 163(j). This means that for tax years beginning on or after Jan 1, 2019, the Iowa and federal business interest expense deduction amounts will generally be the same. However, some taxpayers may still need to make certain adjustments to their federal business interest expense deduction to calculate the correct Iowa deduction amount for a given year. The two most common adjustments are explained in greater detail below.

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