Immediate income tax changes for Iowa taxpayers.

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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.

Immediate income tax changes for Iowa taxpayers.

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 about how to file an amended return.