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:
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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Tax Type:
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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Other Taxes & Fees

Information regarding Iowa vehicle purchase and lease, including forms

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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, digital goods or service may be subject to sales tax, applicable local option sales tax, and use tax, depending on various factors. This guidance explains what is subject to tax including computer software, specified digital products including webinars, the sale of storage services, and information services. Additionally, this guidance provides further information regarding exemptions to taxation.

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Tax Type:
Sales & Use Tax

The exempt status of the purchase of food is not solely determined by whether the food is eligible for purchase with Food Stamps. Under the Streamlined Sales Tax Project, many products are exempt from Iowa sales tax whether or not they are purchased with Food Stamps.

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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, Iowa law began requiring marketplace facilitators to collect and remit Iowa sales tax and applicable local option sales tax for sales made or facilitated on the business’s marketplace. Generally, a marketplace facilitator is a business that provides infrastructure or support for retail sales to occur and collects the sales price, processes payments, or receives compensation from the retail sale. One type of business that may qualify as a marketplace facilitator is a food delivery service company. If a business allows customers to order food and handles the payment for the customer, the business likely qualifies as a marketplace facilitator. This new guidance discusses this new aspect of the law and provides examples for a handful of situations.

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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.

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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. The 2019 legislature modified those new requirements.

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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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