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:
Income Tax, Iowa Tax Reform

This guidance highlights the major differences between federal and Iowa itemized deductions resulting from Iowa’s conformity or nonconformity for tax year 2018 with federal Public Law 114-113 (Protecting Americans from Tax Hikes Act of 2015), Public Law 115-97 (Tax Cuts and Jobs Act), Public Law 115-123 (Bipartisan Budget Act of 2018), Public Law 115-141 (Consolidated Appropriations Act of 2018), and certain federal regulation changes.

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Tax Type:
Income Tax, Iowa Tax Reform

The federal Tax Cuts and Jobs Act (TCJA), Public Law 115-97, added Section 965 to the federal Internal Revenue Code requiring U.S. shareholders to include in their federal income for the last tax year beginning before January 1, 2018, accumulated deferred foreign income. Iowa has not conformed to these TCJA changes for tax year 2017 meaning any accumulated deferred foreign income included in a taxpayer’s 2017 federal income tax return should not be included on the Iowa income tax return.

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Tax Type:
Income Tax, Tax Credits, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes modifications of the Research Activities Credit for individual and corporate income tax. The two modifications include: (1) a clarification of how the credit is calculated and (2) limitations on who may claim the credit.

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Tax Type:
Income Tax, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision beginning with tax year 2018, which allows the same deductions for certain withdrawals from a College Savings Iowa and IAdvisor 529 Plan Accounts (529 Plans) and certain rollovers at the state level that are allowed at the federal level. 529 Plans, administered by the Iowa Treasurer of State, help Iowans save money to pay for certain educational expenses for a specific beneficiary. Any money contributed to the account during a given year may be deducted on the account holder’s Iowa income tax return for that year, subject to an annual contribution cap.

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Tax Type:
Sales & Use Tax

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes a clarification regarding the definition of “pay television” as a taxable service. This is a clarification of existing law and therefore applies to all tax years - past and present.

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Tax Type:
Sales & Use 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. The 2018 Iowa Tax Reform Bill recognizes that the method of delivering photography and retouching services has changed and that the service may or may not result in a physical product. This law modernizes the language of the code so that photography and retouching services are taxed consistently regardless of whether the final product is physical or electronic. This will simplify the tax on goods and services sold by photography business and equalize the taxability of physical and electronic products.

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

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision for tax year 2018, which allows Iowa taxpayers options if they itemize deductions at the federal level.

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Tax Type:
Income Tax, Tax Credits, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision for tax year 2018, which allows the same Earned Income Tax Credit (EITC) calculation at the state level that is allowed at the federal level.

Parts of the federal EITC were previously set to expire after tax year 2017. The 2018 Iowa Tax Reform Bill allows taxpayers who are eligible for the EITC at the federal level will continue to be eligible for an EITC equal to 15% of the federal credit amount on their Iowa individual income tax return for tax year 2018 and beyond.

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Tax Type:
Income Tax, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision beginning with tax year 2018, which allows the same deduction for a charitable distribution from an individual retirement account by certain taxpayers at the state level that is allowed at the federal level.

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Tax Type:
Income Tax, Iowa Tax Reform

Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill includes an updated federal conformity provision for tax year 2018, which allows the same Teacher Expense Deduction at the state level that is allowed at the federal level.

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