The statutory mission of the Iowa Department of Revenue is to serve
Iowans and support state government by collecting all taxes required by
law, but no more.
Effective with the enactment of House File 2433 on
March 21, 2016, Iowa tax provisions are coupled with federal provisions
retroactive to January 1, 2015 for tax year 2015 only. The most common federal provisions with which
Iowa is now coupled are listed below.
NOTE: Iowa did not couple with the bonus
depreciation provisions allowed for federal tax purposes for the 2015 tax year.
For
Tax Year 2015 Only:
For Individual Income Tax Filers Only:
- Deduction
of educator expenses
- Tuition
and fees deduction for higher education
- Election
to deduct state sales/use tax as an itemized deduction in lieu of state income
tax
- Treatment
of mortgage insurance premiums as qualified residence interest
- Tax
free distribution from an IRA to certain charities for individuals 70½ and
older
For Individual Income Tax Filers as well as Corporate Income Tax
(including S Corporations), Partnership, Fiduciary and Franchise Tax:
-
Section 179 limit for Iowa for the 2015 tax year is
$500,000, which is the same as the federal section 179 limit. The
phase-out threshold is $2 million.
The Department will update online forms, instructions, and web
pages accordingly. Taxpayers impacted by these provisions who have already
filed tax year 2015 returns should review information provided on the
Department’s website at https://tax.iowa.gov
about how to file an amended return.
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