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|2005 Expanded Instructions Home|
Adjusted gross income (AGI) for tax year 2005:
Iowa Itemized Deduction Worksheet 41-104: Federal adjusted gross income (AGI) for 2005 has changed to $145,950 ($72,975 when claiming married filing separately for Federal purposes). Those whose income exceeds the above amounts may not be not be able to deduct all of their itemized deductions and must complete the department's worksheet 41-104.
Car registration deduction change
Charitable mileage deduction: 34 cents, line 40
Due date: May 1, 2006
FICA payments for tax year 2005 in excess of $5,580 for Social Security tax for each person and credit for Federal tax paid on fuel can be deducted as a Federal tax payment on line 33.
Interest rate for tax year 2006: 8% per year; 0.7% per month; 0.021918% per day.
Internal Revenue Code
New on Iowa Schedule A
New credits on line 54
New credit on line 66
New deductions on line 24
New Capital Investment Program and New Jobs and Income Program
These programs were replaced on July 1, 2005, with the High Quality Jobs Creation Program, line 66.
ePay through the department's eFile & Pay system will be available in January for individual income tax estimated payments and for final payment of individual income tax. The "old" online system will remain indefinitely so that taxpayers may check their payment history. ePay is an electronic check (direct debit) system.
Power of Attorney Form
The Federal Power of Attorney form is accepted by the Iowa Department of Revenue. You must write a statement on the Federal form that indicates you are submitting it for use with State of Iowa forms. The statement needs to be initialed by the taxpayer.
Standard Deduction for tax year 2005:
Tax Benefit Rule- Line 33a: Federal income taxes paid for a tax year in which an Iowa return was not required to be filed cannot be deducted on the Iowa return.