What's New?
graphic that says Iowa 2005 expanded 1040 instructions
Questions? E-mail Us!
2005 Expanded Instructions Home
graphic to click to go to the department's web page of e-file choices
graphic to click to go to 2005 expanded instructions topic index
graphic to click to go to 2005 expanded instructions line index

WHAT'S NEW?

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
This deduction can only be taken on line 37. Please see line 37 instructions.

Charitable mileage deduction: 34 cents, line 40

College Savings Iowa (529) Plan:

  • The deductible amount for tax year 2005 cannot exceed $2,375 per beneficiary. See line 24.
  • A rollover from another state's 529 plan qualifies toward the deduction for Iowa income tax.

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.

Hurricane Relief

Interest rate for tax year 2006: 8% per year; 0.7% per month; 0.021918% per day.

Internal Revenue Code
Iowa has updated Internal Revenue Code through January 31, 2005

Military

New on Iowa Schedule A

Line 4: The itemized deduction for state sales and use tax paid is allowed only if the taxpayer claimed an itemized deduction for state sales and use tax paid on the federal return.

Line 13: The Iowa Schedule A was printed before the IRS made its changes on line 15 of its Schedule A. For line 13 on the Iowa Schedule A, transfer the amount on line 15a of the federal form.

New credits on line 54

  • Economic Development Region Revolving Fund Tax Credit
  • Venture Capital Credit

New credit on line 66

  • Soy-based Cutting Tool Oil Credit

New deductions on line 24

  • Domestic production activities
  • Organ transplant expenses

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.

Payment Options

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:

Filing Status 1: $1,610
Filing Status 3 & 4: $1,610 for each spouse
Filing Status 2, 5 or 6: $3,970

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.