The Iowa Department of Revenue has published 2025 Iowa income tax forms to our website. A summary of the significant changes made to tax forms can be found below.
Individual Income Tax
Notable Legislative and Other Changes
- Threshold for estimated tax payments: Starting with tax year 2026, the tax threshold for when an individual is required to make estimated tax payments has been raised from $200 to $1000. See 2026 IA 1040ES Iowa Individual Estimated Income Tax Instructions (45-009) for more information on estimated tax payments for 2026.
Forms Changes
- IA 1040 - Iowa Individual Income Tax Return (41-001)
- Line 1f: The new federal “Enhanced Deduction for Seniors” has been added to the IA 1040. This line does not directly affect the calculation of Iowa taxable income as the deduction is already included in your federal taxable income. However, for Iowa purposes this deduction is considered a personal exemption that must be added back when calculating the low-income exemption (filing thresholds), alternate tax, tax reduction, or taxable income for purposes of the health insurance deduction; and has been added to the IA 1040 for this purpose.
- Line 5: Iowa now has a flat tax rate of 3.8%
- Line 6: A lump-sum amount received from a governmental or other pension or retirement plan, including defined benefit or defined contribution plans, annuities, individual retirement accounts, plans maintained or contributed to by an employer, or maintained or contributed to by a self-employed person as an employer, and deferred compensation plans or any earnings attributable to a deferred compensation plan is not subject to Iowa lump-sum tax if the recipient is disabled, fifty-five years of age or older, or is the surviving spouse of an individual or is a survivor having an insurable interest in an individual who would have qualified.
- Iowa Modifications (Schedule 1): Two modifications previously included in Line 19 Other Adjustments have been moved up to their own dedicated lines:
- College Savings Iowa or Iowa Advisor 529 Education Savings Plan: Beginning in tax year 2025, include any amounts contributed to a college savings Iowa account or Iowa Advisor 529 Education Savings Plan up to $5,800 per beneficiary on Schedule 1, line 14. Line 19, code ‘g’ should no longer be used.
- Income from a farm tenancy agreement: Beginning in tax year 2025, include the net income from a farm tenancy agreement that qualifies for the exclusion on Schedule 1, line 18. Line 19, code ‘oo’ should no longer be used.
Discontinued forms in 2025:
- Tax Calculation Worksheet (41-026)
Business Income Tax
Notable Legislative and Other Changes
- IA 148 credits claimed cannot be more than the amount calculated, or awarded, or allocated from a pass-through entity, to the cent. If you claim more than the available amount of credit, the processing of your return may be delayed.
- Franchise taxpayers are now permitted to elect to file a combined Iowa return with their investment subsidiaries. New form IA 60F has been created to accommodate these combined returns.
- New tax credits have been added for the BIG Program investment credit, the Seed Investor tax credit, and the Sustainable Aviation Fuel tax credit.
- Historic Preservation tax credit is no longer subject to claim reduction
- Assistive Device tax credit is repealed
Forms Changes
- NEW Business Income Refund Request form (22-010) for certain refund requests by corporations, partnerships, S corporations, moneys and credits, and franchise taxpayers
- Optional contact information lines for the person signing the return have been added to the IA 1120, IA 1120F, IA 1120S, and IA 1065.
- IA 128 and IA 128S Research Activities Credit Forms (41-128 / 41-124)
- Eligible cost of Iowa supplies (IA 128, line 25; IA 128S, line 18) reduced
- IA 148 Tax Credits Schedule (41-148)
- Part V, Sections A and B, Column G tax credit claim reduction increased
- IA 178 Farm to Food Donation Credit (41-167)
- Removed columns C and G to simplify reporting of donations