- Instruction Year: 2024
What's New for 2024:
Before you Begin
Prior to completing the IA 1040, complete either the federal 1040 or 1040-SR. The federal form must be completed even if there is no federal filing requirement, for purposes of completing the IA 1040. Also, note that the line references are the same on the federal 1040 and 1040-SR.
Rounding off to Whole Dollars: You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. If you are entering amounts that include cents, make sure to include the decimal point. If the Department needs to adjust your tax return, the adjustment will be calculated to the cent.
Rounding of IA 148 credits: The Department cannot allow IA 148 credits for more than what is calculated or awarded. If your software does not allow the calculation of tax credits to the cent, the processing of your return may be delayed if the credit is rounded up to a higher amount than what is specifically allowed or awarded.
Line 5: The tax rates for each tax bracket have decreased. For tax year 2025, Iowa will have a single tax rate of 3.8%.
Line 21: The State Fair Fund - Corndog Checkoff and the Firefights/Veterans Fund checkoffs received the lowest aggregate contribution amounts for the previous two years and, as required by Iowa Code section 422.12E, have been repealed effective December 31, 2023.
Iowa Modifications (Schedule 1)
- Partnership and/or S corporation Modifications - Beginning in tax year 2024, any partnership and/or S corporation modifications should be reported on Schedule 1, line 3.
- Military retirement income - Beginning in tax year 2024, the military retirement income exclusion should be reported on Schedule 1, line 4.
- Surviving Spouse Pension Income Exemption - For tax years beginning on or after January 1, 2024, a surviving spouse may exclude amounts received from a deceased spouse’s pension on Schedule 1, line 7, regardless if the deceased spouse was 55 years of age or older or disabled, if the pension was from employment in a protection occupation, or as a sheriff, deputy sheriff, firefighter, or police officer.
- Transfers from Iowa 529 Plan to Roth IRA Exemption. Taxpayers who make a qualifying transfer from an Iowa 529 plan to a Roth IRA on or after January 1, 2024 are no longer required to add-back the amount previously deducted on Schedule 1, Line 11.
- 529 Plan (ISave 529) Deduction Limit - For tax year 2024, the deduction limit for contributions to Iowa 529 plans has increased to $5,500 per beneficiary. The deduction is reported on Schedule 1, line 19, using code ”g”.
IA 100A Iowa Capital Gain Deduction - Cattle, Horses, or Breeding Livestock: For tax years beginning on or after January 1, 2023, taxpayers are allowed to exclude gains from qualifying livestock sales in addition to qualifying pre-tax year 2023 installments sales. The IA 100A should only be used for installment sales occurring before January 1, 2023 and for sales occurring after January 1, 2023 that are not claimed under the single lifetime election for retired farmers and surviving spouses.
IA 176: Public Safety Officer Moving Expense Tax Credit: There is a new Public Safety Officer Moving Expense Tax Credit available to certain individuals who become residents of Iowa after July 1, 2024 upon taking full-time employment as a public safety officer in Iowa. This credit is for unreimbursed moving expenses incurred by the taxpayer up to $2,000. The credit is refundable and applies to tax years beginning on or after January 1, 2024. The credit can be claimed on the IA 176 and reported on the IA 148, both of which should be included with the IA 1040.
Track Your Return: Use Where's My Refund to check the status of individual income tax returns and amended individual income tax returns you've filed within the last year or over the phone at 515-281-3114 or 800-367-3388.