![]() College Savings Iowa or Iowa Advisor 529 Education Savings Plans The taxpayer may claim a $9,800 income adjustment on line 24 of the 2022 Iowa return. The taxpayer had to repay $15,000 of unemployment. $10,200 of those benefits were excluded from tax. The taxpayer may claim a $4,000 income adjustment on line 24 of the 2022 Iowa return.Įxample 2: A taxpayer received $20,000 Iowa unemployment benefits in 2021. The benefits were repaid by the end of 2022. In early 2022 the taxpayer was notified that $4,000 of the unemployment benefits had to be repaid. The taxpayer did not qualify for the unemployment exclusion. The taxpayer’s 2021 AGI exceeded $150,000 without including the unemployment income. You may take either the deduction on line 24 or take a credit on line 62, but not both.Įxample 1: A taxpayer reported $7,000 in unemployment benefits on the 2021 Iowa return. However, it may be to your advantage to take a credit on line 62. If income was repaid in the 2022 tax year and was reported and taxed on a prior Iowa return, that income may be deducted on the 2022 tax return. ![]() Any exclusion allowed for Iowa tax purposes does not alter the basis of the property as established for federal tax purposes, so the basis will remain the same for both federal and Iowa tax purposes. If there is no ordinary or capital gain recognized for tax purposes because the converted property is replaced with property that is similar to, or related in use to, the converted property, there is no exclusion allowed for Iowa tax purposes until the remaining gain is recognized for federal tax purposes or until the time of disposition of the replacement property. Eminent domain relates to the authority of certain government agencies or instrumentalities of government to condemn private property for any public improvement, public purpose, or other public use. Capital or ordinary gain from involuntary conversion related to eminent domainĪn exclusion of both capital gain and ordinary gain is available for individual income taxpayers relating to capital or ordinary gain income realized by a taxpayer as a result of the involuntary conversion of property due to eminent domain. However, if you used the accrual method of accounting and reported the entire capital gain on the 2001 Iowa return which was reported on the installment method for federal tax purposes, deduct the amount reported of any additional installments from that capital gain on this line. The installment method for reporting capital gain for accrual accounting taxpayers is adopted for Iowa individual income tax purposes for tax years beginning on or after January 1, 2002. Capital gain from installment sales reported on the 2001 Iowa return using the accrual method Alternative motor vehicle deductionĪlternative motor vehicle deduction of $2,000 for taxpayers who are eligible for the federal Alternative Motor Vehicle Credit under Internal Revenue Code section 30B and who complete federal form 8910. Members of the armed forces, armed forces military reserve, or the national guard in an active duty status can exclude pay received from the federal government for military service performed, to the extent it was included in line 15, Gross Income. Taxpayers who had capital gains in 2022 that were reported on the installment method for federal tax purposes and the entire gain was reported for Iowa in a prior year do not have to report installments. Include an explanation for each adjustment.ĭo not include any deduction for the small business health insurance tax credit that was not allowed as a deduction on the federal return. Enter the total of other allowable adjustments as described below.
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