April 12, 2010
Coupling with Federal Extenders
We continue to receive inquiries about whether Iowa will adopt the federal provisions for what are commonly referred to as the federal “extenders.” The Iowa Legislature has adjourned its 2010 session. Iowa will not be coupling with the 2008 federal law provisions related to extenders that impact the 2009 tax year.
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)
Iowa income tax returns must be filed based upon current Iowa law. Therefore, the extenders should not be included on Iowa returns.
Other Federal Changes
As a reminder, Iowa did not couple with the following federal income tax changes that became effective with the 2009 tax year:
- 50% bonus depreciation for property acquired after December 31, 2008, but before January 1, 2010
- Increased section 179 expensing of $250,000 for tax years beginning in 2009
- Increase in the Iowa earned income tax credit for families with three or more children and married taxpayers
- Exclusion of the first $2,400 of unemployment compensation
- Deduction for the one-time registration fee related to the purchase of certain new vehicles