What's New?
LEGISLATIVE
UPDATE
The 2007
Legislative Summary is available online only.
Legislative changes are incorporated in the Line Changes information
below.
LINE
CHANGES
Line
13 Social Security Worksheet
The
phase-out of tax on Social Security benefits begins with the 2007
tax year. The worksheet calculates the 32% reduction established
by the Iowa Legislature. For more information, see the 2006
Legislative Summary for SF 2408-C.
Line
24 New Adjustments
- Film Production Income Exclusion (HF
892-C)
- Victim Compensation Awards (SF
70)
- Vietnam Veterans Bonus (SF
578)
Line
24 Amount of College
Savings Iowa (529) Plan
- The
deductible amount for tax year 2007 cannot exceed $2,595 per beneficiary.
- A
rollover from another state's 529 plan qualifies toward the deduction
for Iowa income tax.
Line
24 Reminder
- The
following are available for 2007:
- Educator expenses
- Tuition and fees deductions
Line 26 New
filing thresholds for taxpayers 65 and older
An
Iowa return is not required for single persons with income of $18,000
or less, and an Iowa return is not required for all other filers
with income of $24,000 or less. In the case of married persons, the
higher threshold amounts apply even if only one spouse is 65 years
or older as of December 31 of the tax year.
To
claim this benefit, taxpayers must check an informational box.
On the paper form, the box is located in the upper right corner
of the first page of the IA 1040.
Additional
information can be found in the 2006
Legislative Summary SF 2408-A.
Line
33 FICA amount
FICA payments for
tax year 2007 in excess of $6,045.00 for Social Security tax for
each person can be deducted as a Federal tax payment.
Line
37 Itemized Deductions
The itemized deduction
for state sales and use tax paid is allowed on the 2007 Federal
and Iowa Schedule A. The itemized deduction for state sales
and use tax paid is allowed on the Iowa Schedule A only if the taxpayer claimed an itemized
deduction for state sales and use tax paid on the Federal return.
Line 11 of the Iowa Schedule A has the same deduction for qualified mortgage insurance premiums as taken on the Federal Schedule A.
School Tuition
Organization Tax Credit Contributions: Do not include as an itemized
deduction any contributions for which a credit is claimed on line
53 of the IA 1040.
Injured Veterans
Grant Program Contributions: These contributions do not qualify as
itemized deductions.
For those itemized
deduction calculations dependent upon Federal Adjusted Gross Income
(AGI), the Federal AGI thresholds for tax year 2007 are $156,400
and $78,200.
Line
41 Standard Deduction for tax year 2007:
Filing Status
1: $1,700
Filing Status 3 & 4: $1,700
Filing Status 2, 5 or 6: $4,200
Line 43 New
alternate tax calculation for taxpayers 65 or older
Taxpayers
who are 65 years of age or older, except single taxpayers, who have
income just above the new threshold amount of $24,000 should complete
the alternate tax calculation worksheet for taxpayers 65 or older.
In the case of married persons, the alternate tax can be applied
even if only one spouse is 65 years or older as of December 31 of
the tax year.
Additional
information can be found in the 2006
Legislative Summary SF 2408-B.
Line
53 Other Iowa Credits
Form IA 148
Tax Credits Schedule must be completed and attached.
Removed from line 53:
Historic Preservation and Cultural and Entertainment
District Tax Credit
Added to line 53:
- Agricultural Assets Transfer Credit
- Film Expenditure Tax Credit
- Film Investment Tax Credit
Line
65 Iowa Earned
Income Credit
This credit is
now 7.0% of the Federal Earned Income Credit. The Iowa EIC is now
refundable.
Line
66 Other Refundable Credits
Form IA 148
Tax Credits Schedule must be completed and attached.
Removed from line 66: Soy-Based Cutting Tool Oil Credit
Line
74 Interest rate in 2008
10% per year; 0.8%
per month; 0.027322% per day
OTHER
NEWS
Due
date: April 30, 2008
Military
Tax
Rate Schedules (pdf)
Payment
Options
- ePay (direct
debit) individual income tax estimated payments and final payment
of individual income tax through the department's eFile & Pay system.
- Credit
card
- Check/money
order: Send with 1040V (pdf)
payment voucher.
Power
of Attorney Form (pdf)
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.
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