The Iowa Department of Revenue has released information regarding the effect of the federal extenders included in the recently passed fiscal cliff legislation on Iowa corporate and personal income taxpayers. The department reminds taxpayers that the extenders are not currently reflected on Iowa tax forms for 2012 and that they will require approval by the Iowa Legislature before being allowed for Iowa tax purposes. The federal extender provisions include:
- educator expenses (Line 24; IA 1040);
- tuition and fees (Line 24; IA 1040);
- itemized deduction for state sales/use tax paid (Line 4; IA Schedule A);
- treatment of mortgage insurance premiums as qualified residence interest (Line 11, schedule A); and
- federal Sec. 179 expensing limit of $500,000 for 2012 and 2013.
If the Legislature approves the extenders, Iowa online tax forms will be updated accordingly.
News , Iowa Department of Revenue, January 2, 2013