Line 25: Iowa Earned Income Tax Credit

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Expanded Instructions
  • Line: 25
  • Step: 6
  • Step Subject: Refundable Credits and Payments
  • Instruction Year: 2025

The Iowa Earned Income Tax Credit is a refundable credit. This credit is available only to taxpayers who qualify for the federal Earned Income Tax Credit (EITC). To calculate the Iowa Earned Income Tax Credit, multiply your federal EITC by 15% (.15).

Qualifying for the EITC

To find out if you qualify for federal EITC, taxpayers should visit the IRS for additional information.

If you are filing an Iowa return ONLY to claim EITC

If you qualify for the low income exemption and are filing an Iowa return only to claim a refund of the Iowa EITC, check the box between Steps 4 and 5. Skip lines 5 through 19, enter zero on lines 20 and 22, and enter the amount of your Iowa EITC on lines 25, 30, 31, and 32.

Nonresidents and Part-year Residents
Nonresidents and Part-year Residents
The Iowa EITC must be adjusted using the following formula.
Iowa income percentage (IA 126, line 29) ___________
multiplied by the Iowa Earned Income Tax Creditx __________
equals credit on line 25 = __________

Go to Line 24: Child and Dependent Care Credit or Early Childhood Development Credit

Go to Line 26: Other Refundable Credits